Press release, dated November 16, 2020, entitled “IBEX Limited Announces First Quarter Fiscal Year 2021 Financial Results”
|
IBEX LIMITED
|
||
By: |
/s/ Karl Gabel
|
Name: |
Karl Gabel
|
Title: |
Chief Financial Officer
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|
Date: November 16, 2020
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• |
Record revenue increased 14.1% year-over-year to $108.8 million
|
• |
Net loss was $3.4 million (non-GAAP adjusted net income of $5.2 million)
|
• |
Adjusted EBITDA increased 41.3% to $15.6 million
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• |
Eight new logos won and two new contact centers opened
|
• |
Company raises guidance for fiscal year 2021
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• |
Revenue increased 14.1% to $108.8 million, compared to $95.3 million in the prior year quarter.
|
• |
Net loss was $3.4 million, including $4.4 million of non-recurring costs, compared to net income of $2.3 million in the prior year quarter.
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• |
Net margin was (3.1)%, compared to 2.4% in the prior year quarter.
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• |
Non-GAAP adjusted net income increased to $5.2 million, compared to $3.1 million in the prior year quarter.
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• |
Non-GAAP adjusted EBITDA increased to $15.6 million, compared to $11.0 million in the prior year quarter.
|
• |
Non-GAAP adjusted EBITDA margin increased to 14.3%, compared to 11.6% in the prior year quarter.
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• |
IFRS basic and fully diluted loss per share was $(0.21) in the first quarter of fiscal year 2021 compared to IFRS basic and fully diluted earnings per share of $0.00 in the prior year quarter.*
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• |
Non-GAAP pro forma fully diluted adjusted earnings per share increased to $0.31, compared to $0.18 in the prior year quarter.
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• |
Net proceeds of $63.1 million received from our initial public offering, significantly strengthening our balance sheet.
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• |
Operating cash flow increased to $5.9 million, compared to $0.8 million in the prior year quarter.
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• |
Non-GAAP net debt decreased to $35.5 million, compared to $84.1 million as of June 30, 2020, primarily driven by funds received from our initial public offering.
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• |
Won eight new customer logos across key verticals, including fintech and logistics & delivery
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• |
Launched nine new clients in the quarter
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• |
Opened two new contact centers in Ocho Rios, Jamaica and Managua, Nicaragua, and added a total of approximately 1,000 new nearshore workstations.
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• |
Top three client concentration decreased to 38.1% from 46.2% in the prior year quarter
|
• |
New Economy revenue increased by 19% compared to the prior year quarter
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• |
Digital business increased by 5% compared to the prior year quarter
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• |
Non-voice revenue increased by 9% compared to the prior year quarter
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US$ in thousands
|
September 30,
2020 |
June 30,
2020
|
||||||
Assets
|
||||||||
Non-current assets
|
||||||||
Goodwill
|
$
|
11,832
|
$
|
11,832
|
||||
Other intangible assets
|
2,862
|
2,781
|
||||||
Property and equipment
|
92,548
|
84,588
|
||||||
Investment in joint venture
|
338
|
331
|
||||||
Deferred tax asset
|
2,946
|
2,223
|
||||||
Warrant asset
|
2,406
|
2,611
|
||||||
Other assets
|
5,150
|
4,834
|
||||||
Total non-current assets
|
$
|
118,082
|
$
|
109,200
|
||||
Current assets
|
||||||||
Trade and other receivables
|
73,840
|
62,579
|
||||||
Due from related parties
|
1,857
|
1,587
|
||||||
Cash and cash equivalents
|
79,779
|
21,870
|
||||||
Total current assets
|
$
|
155,476
|
$
|
86,036
|
||||
Total assets
|
$
|
273,558
|
$
|
195,236
|
||||
Equity and liabilities
|
||||||||
Equity attributable to owners of the parent
|
||||||||
Share capital
|
$
|
2
|
$
|
12
|
||||
Additional paid-in capital
|
158,009
|
96,207
|
||||||
Other reserves
|
31,417
|
29,456
|
||||||
Accumulated deficit
|
(116,950
|
)
|
(109,527
|
)
|
||||
Total equity
|
$
|
72,478
|
$
|
16,148
|
||||
Non-current liabilities
|
||||||||
Deferred revenue
|
$
|
1,057
|
$
|
434
|
||||
Lease liabilities
|
68,029
|
62,044
|
||||||
Borrowings
|
4,535
|
3,782
|
||||||
Deferred tax liability
|
114
|
117
|
||||||
Other non-current liabilities
|
12,347
|
7,058
|
||||||
Total non-current liabilities
|
$
|
86,082
|
$
|
73,435
|
||||
Current liabilities
|
||||||||
Trade and other payables
|
$
|
59,603
|
$
|
53,213
|
||||
Income tax payables
|
2,747
|
3,087
|
||||||
Lease liabilities
|
13,460
|
12,668
|
||||||
Borrowings
|
29,302
|
27,476
|
||||||
Deferred revenue
|
4,206
|
3,470
|
||||||
Due to related parties
|
5,680
|
5,739
|
||||||
Total current liabilities
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$
|
114,998
|
$
|
105,653
|
||||
Total liabilities
|
$
|
201,080
|
$
|
179,088
|
||||
Total equity and liabilities
|
$
|
273,558
|
$
|
195,236
|
Quarter ended September 30,
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||||||||
2020
|
2019
|
|||||||
Revenue
|
$
|
108,771
|
$
|
95,347
|
||||
Payroll and related costs
|
72,264
|
66,055
|
||||||
Share-based payments
|
2,089
|
42
|
||||||
Reseller commission and lead expenses
|
4,102
|
4,821
|
||||||
Depreciation and amortization
|
6,439
|
5,700
|
||||||
Other operating costs
|
24,790
|
14,136
|
||||||
(Loss) / income from operations
|
$
|
(913
|
)
|
$
|
4,593
|
|||
Finance expenses
|
(2,239
|
)
|
(2,307
|
)
|
||||
(Loss) / income before taxation
|
$
|
(3,152
|
)
|
$
|
2,286
|
|||
Income tax (expense) / benefit
|
(271
|
)
|
50
|
|||||
Net (loss) / income
|
$
|
(3,423
|
)
|
$
|
2,336
|
|||
Other comprehensive (loss) / income
|
||||||||
Item that will be subsequently reclassified to profit or loss
|
||||||||
Foreign currency translation adjustment
|
$
|
(36
|
)
|
$
|
30
|
|||
Cash flow hedge - changes in fair value
|
33
|
-
|
||||||
$
|
(3
|
)
|
$
|
30
|
||||
Total comprehensive (loss) / income
|
$
|
(3,426
|
)
|
$
|
2,366
|
|||
(Loss) / earnings per share attributable to the ordinary equity holders of the parent
|
||||||||
Basic
|
$
|
(0.21
|
)
|
$
|
-
|
|||
Diluted
|
$
|
(0.21
|
)
|
$
|
-
|
|||
Weighted average shares outstanding
|
||||||||
Basic
|
16,368,143
|
12,387,658
|
||||||
Diluted
|
16,368,143
|
12,594,993
|
Quarter ended September 30,
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||||||||
US$ in thousands
|
2020
|
2019
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
(Loss) / income before taxation
|
$
|
(3,152
|
)
|
$
|
2,286
|
|||
Adjustments to reconcile net (loss) / income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
6,439
|
5,700
|
||||||
Amortization of warrant asset
|
205
|
235
|
||||||
Gain on disposal of fixed assets
|
(192
|
)
|
-
|
|||||
Foreign currency translation loss
|
148
|
153
|
||||||
Share warrants
|
3,586
|
749
|
||||||
Phantom expense
|
125
|
13
|
||||||
Share-based payments
|
1,964
|
29
|
||||||
Provision for retirement benefit expense
|
78
|
26
|
||||||
Allowance for expected credit losses
|
243
|
(60
|
)
|
|||||
Share of profit from investment in joint venture
|
(123
|
)
|
(164
|
)
|
||||
Finance expenses
|
2,239
|
2,307
|
||||||
Increase in trade and other receivables
|
(10,727
|
)
|
(4,663
|
)
|
||||
Increase in prepayments and other assets
|
(316
|
)
|
(473
|
)
|
||||
Increase / (decrease) in trade and other payables and other liabilities
|
9,153
|
(2,938
|
)
|
|||||
Cash generated from operations
|
9,670
|
3,200
|
||||||
Interest paid
|
(2,239
|
)
|
(2,307
|
)
|
||||
Income taxes paid
|
(1,492
|
)
|
(106
|
)
|
||||
Net cash provided by operating activities
|
$
|
5,939
|
$
|
787
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase of property and equipment
|
$
|
(2,901
|
)
|
$
|
(200
|
)
|
||
Purchase of other intangible assets
|
(310
|
)
|
(148
|
)
|
||||
Capital repayment from joint venture
|
115
|
71
|
||||||
Net cash used in investing activities
|
$
|
(3,096
|
)
|
$
|
(277
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from line of credit
|
$
|
32,344
|
$
|
34,792
|
||||
Repayments of line of credit
|
(31,388
|
)
|
(26,698
|
)
|
||||
Proceeds from borrowings
|
1,714
|
1,000
|
||||||
Repayment of borrowings
|
(2,796
|
)
|
(1,699
|
)
|
||||
Net proceeds from initial public offering
|
63,107
|
-
|
||||||
Payment of listing related expenses
|
(825 |
) |
- | |||||
Principal payments on lease obligations
|
(3,055
|
)
|
(3,000
|
)
|
||||
Dividends paid
|
(4,000
|
)
|
-
|
|||||
Net cash provided by financing activities
|
$
|
55,101
|
$
|
4,395
|
||||
Effects of exchange rate difference on cash and cash equivalents
|
(35
|
)
|
29
|
|||||
Net increase in cash and cash equivalents
|
$
|
57,909
|
$
|
4,934
|
||||
Cash and cash equivalents at beginning of the period
|
$
|
21,870
|
$
|
8,873
|
||||
Cash and cash equivalents at end of the period
|
$
|
79,779
|
$
|
13,807
|
Quarter ended September 30,
|
||||||||
US$ in thousands, except share and per share amounts
|
2020
|
2019
|
||||||
Net (loss) / income
|
$
|
(3,423
|
)
|
$
|
2,336
|
|||
Non-recurring expenses
|
4,398
|
-
|
||||||
Other income
|
(151
|
)
|
(199
|
)
|
||||
Fair value adjustment
|
3,586
|
749
|
||||||
Share-based payments
|
2,089
|
42
|
||||||
Foreign exchange losses
|
148
|
153
|
||||||
Total adjustments
|
$
|
10,070
|
$
|
745
|
||||
Tax impact of adjustments
|
(1,446
|
)
|
63
|
|||||
Adjusted net income
|
$
|
5,201
|
$
|
3,144
|
||||
Weighted average fully diluted shares outstanding, quarter ended September 30, 2020(1)
|
17,034,939
|
17,034,939
|
||||||
Pro forma fully diluted adjusted earnings per share(2)
|
$
|
0.31
|
$
|
0.18
|
(1) |
Fully diluted shares outstanding as of September 30, 2020 were 18,510,094.
|
(2) |
We provide “pro forma fully diluted adjusted earnings per share” because the share structure for the prior year quarter does not reflect the recapitalization that occurred in
connection with ibex’s initial public offering which occurred on August 7, 2020. For purposes of this calculation, we have included 17,034,939 shares, the weighted average fully diluted shares outstanding for the quarter ended September
30, 2020, in both periods in order to enhance comparability between such periods. Beginning with the first quarter of fiscal year 2022, our share structure will be comparable year over year, and this measure will reflect the respective
periods’ weighted average fully diluted shares outstanding.
|
Quarter ended September 30,
|
||||||||
US$ in thousands
|
2020
|
2019
|
||||||
Net (loss) / income
|
$
|
(3,423
|
)
|
$
|
2,336
|
|||
Finance expenses
|
2,239
|
2,307
|
||||||
Income tax expense / (benefit)
|
271
|
(50
|
)
|
|||||
Depreciation and amortization
|
6,439
|
5,700
|
||||||
EBITDA
|
$
|
5,526
|
$
|
10,293
|
||||
Non-recurring expenses
|
4,398
|
-
|
||||||
Other income
|
(151
|
)
|
(199
|
)
|
||||
Fair value adjustment
|
3,586
|
749
|
||||||
Share-based payments
|
2,089
|
42
|
||||||
Foreign exchange losses
|
148
|
153
|
||||||
Adjusted EBITDA
|
$
|
15,596
|
$
|
11,038
|
Quarter ended September 30,
|
||||||||
US$ in thousands
|
2020
|
2019
|
||||||
Net cash provided by operating activities
|
$
|
5,939
|
$
|
787
|
||||
Less:
|
||||||||
Capital expenditures
|
4,525
|
9,338
|
||||||
Lease payments on right-of-use assets
|
2,328
|
2,389
|
||||||
Free cash flow
|
$
|
(914
|
)
|
$
|
(10,940
|
)
|
US$ in thousands
|
September 30,
2020
|
June 30,
2020
|
||||||
Borrowings
|
||||||||
Non-current
|
$
|
4,535
|
$
|
3,782
|
||||
Current
|
29,302
|
27,476
|
||||||
$
|
33,837
|
$
|
31,258
|
|||||
Leases
|
||||||||
Non-current
|
$
|
68,029
|
$
|
62,044
|
||||
Current
|
13,460
|
12,668
|
||||||
$
|
81,489
|
$
|
74,712
|
|||||
Total Debt
|
$
|
115,326
|
$
|
105,970
|
||||
Cash and cash equivalents
|
79,779
|
21,870
|
||||||
Net debt
|
$
|
35,547
|
$
|
84,100
|