IBEX LIMITED
|
||
By: | /s/ Karl Gabel | |
Name: Karl Gabel
|
||
Title: Chief Financial Officer
|
||
Date: May 18, 2021
|
• |
Strong revenue of $108.8 million, representing an increase of 7.6% year-over-year
|
• |
Net loss was $0.2 million (non-GAAP adjusted net income of $6.0 million)
|
• |
Adjusted EBITDA increased 12.4% to $16.7 million, achieving record adjusted EBITDA margin of 15.3%
|
• |
Fully diluted loss per share was $0.01 (non-GAAP adjusted earnings per share $0.32)
|
• |
Added 10 new logos, including marquee wins in key verticals
|
• |
Revenue increased 7.6% to $108.8 million, compared to $101.1 million in the prior year quarter.
|
• |
Net loss was $0.2 million, compared to net income of $4.5 million in the prior year quarter.
|
• |
Non-GAAP adjusted net income increased to $6.0 million, compared to $4.7 million in the prior year quarter (see Exhibit 1 for reconciliation).
|
• |
Net margin was (0.2)%, compared to 4.4% in the prior year quarter.
|
• |
On a Non-GAAP basis, adjusted net income margin increased to 5.5%, compared to 4.6% in the prior year quarter (see Exhibit 1 for reconciliation).
|
• |
Non-GAAP adjusted EBITDA, increased to $16.7 million, compared to $14.8 million in the prior year quarter (see Exhibit 2 for reconciliation).
|
• |
Non-GAAP adjusted EBITDA margin increased to a record 15.3%, compared to 14.7% in the prior year quarter.
|
• |
IFRS basic and fully diluted loss per share was $0.01 compared to IFRS basic and fully diluted earnings per share of $0.00 in the prior year quarter.*
|
• |
Non-GAAP pro forma fully diluted adjusted earnings per share increased to $0.32, compared to $0.25 in the prior year quarter (see Exhibit 1 for reconciliation).
|
• |
Strong cash position of $62.6 million compared to $21.9 million at June 30, 2020.
|
• |
Non-GAAP net debt decreased to $48.7 million, compared to $84.1 million as of June 30, 2020 (see
Exhibit 4 below).
|
• |
Won 10 new customer logos, primarily New Economy companies in the FinTech, healthcare and utilities verticals
|
• |
Legacy top three client concentration decreased to 34.1% from 43.6% in the prior year quarter
|
•
|
Added 800 seats in Jamaica and 560 seats in the Philippines
|
• |
New Economy revenue increased by 6.3% compared to the prior year quarter, and when adjusted for one client that was adversely impacted by the pandemic, New Economy revenue increased by 21.9% compared to
the prior year quarter
|
• |
Non-voice revenue increased by 10.2% compared to the prior year quarter, and when adjusted for one client that was adversely impacted by the pandemic, non-voice revenue increased by 31.8% compared to the
prior year quarter
|
US$ in thousands
|
March 31,
2021
|
June 30,
2020
|
||||||
Assets
|
||||||||
Non-current assets
|
||||||||
Goodwill
|
$
|
11,832
|
$
|
11,832
|
||||
Other intangible assets
|
3,323
|
2,781
|
||||||
Property and equipment
|
107,338
|
84,588
|
||||||
Investment in joint venture
|
357
|
331
|
||||||
Deferred tax asset
|
3,017
|
2,223
|
||||||
Warrant asset
|
1,932
|
2,611
|
||||||
Other assets
|
6,205
|
4,834
|
||||||
Total non-current assets
|
$
|
134,004
|
$
|
109,200
|
||||
Current assets
|
||||||||
Trade and other receivables
|
75,310
|
62,579
|
||||||
Due from related parties
|
1,794
|
1,587
|
||||||
Cash and cash equivalents
|
62,552
|
21,870
|
||||||
Total current assets
|
$
|
139,656
|
$
|
86,036
|
||||
Total assets
|
$
|
273,660
|
$
|
195,236
|
||||
Equity and liabilities
|
||||||||
Equity attributable to owners of the parent
|
||||||||
Share capital
|
$
|
2
|
$
|
12
|
||||
Additional paid-in capital
|
158,044
|
96,207
|
||||||
Other reserves
|
32,683
|
29,456
|
||||||
Accumulated deficit
|
(114,707
|
)
|
(109,527
|
)
|
||||
Total equity
|
$
|
76,022
|
$
|
16,148
|
||||
Non-current liabilities
|
||||||||
Deferred revenue
|
$
|
2,038
|
$
|
434
|
||||
Lease liabilities
|
73,030
|
62,044
|
||||||
Borrowings
|
3,745
|
3,782
|
||||||
Deferred tax liability
|
85
|
117
|
||||||
Other non-current liabilities
|
18,834
|
7,058
|
||||||
Total non-current liabilities
|
$
|
97,732
|
$
|
73,435
|
||||
Current liabilities
|
||||||||
Trade and other payables
|
$
|
51,649
|
$
|
53,213
|
||||
Income tax payables
|
4,210
|
3,087
|
||||||
Lease liabilities
|
11,386
|
12,668
|
||||||
Borrowings
|
23,059
|
27,476
|
||||||
Deferred revenue
|
5,334
|
3,470
|
||||||
Due to related parties
|
4,268
|
5,739
|
||||||
Total current liabilities
|
$
|
99,906
|
$
|
105,653
|
||||
Total liabilities
|
$
|
197,638
|
$
|
179,088
|
||||
Total equity and liabilities
|
$
|
273,660
|
$
|
195,236
|
Three months ended March 31,
|
Nine months ended March 31,
|
|||||||||||||||
US$ in thousands, except share and per share amounts
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Revenue
|
$
|
108,832
|
$
|
101,124
|
$
|
334,784
|
$
|
304,255
|
||||||||
Payroll and related costs
|
$
|
72,386
|
$
|
68,006
|
223,610
|
207,246
|
||||||||||
Share-based payments
|
$
|
1,298
|
$
|
(212
|
)
|
4,004
|
(119
|
)
|
||||||||
Reseller commission and lead expenses
|
$
|
3,275
|
$
|
4,278
|
10,776
|
13,604
|
||||||||||
Depreciation and amortization
|
$
|
7,258
|
$
|
6,347
|
20,680
|
18,460
|
||||||||||
Fair value adjustment
|
$
|
4,433
|
$
|
(250
|
)
|
10,178
|
632
|
|||||||||
Other operating costs
|
$
|
17,778
|
$
|
14,914
|
57,711
|
44,185
|
||||||||||
Income from operations
|
$
|
2,404
|
$
|
8,041
|
$
|
7,825
|
$
|
20,247
|
||||||||
Finance expenses
|
$
|
(2,310
|
)
|
$
|
(2,376
|
)
|
(6,923
|
)
|
(7,190
|
)
|
||||||
Income before taxation
|
$
|
94
|
$
|
5,665
|
$
|
902
|
$
|
13,057
|
||||||||
Income tax expense
|
$
|
(339
|
)
|
$
|
(1,183
|
)
|
(2,082
|
)
|
(1,482
|
)
|
||||||
Net (loss) / income
|
$
|
(245
|
)
|
$
|
4,482
|
$
|
(1,180
|
)
|
$
|
11,575
|
||||||
Other comprehensive income / (loss)
|
||||||||||||||||
Items that will be subsequently reclassified to profit or loss
|
||||||||||||||||
Foreign currency translation adjustment
|
$
|
99
|
$
|
(5
|
)
|
$
|
(14
|
)
|
$
|
(37
|
)
|
|||||
Cash flow hedge - changes in fair value
|
$
|
73
|
$
|
-
|
158
|
-
|
||||||||||
$
|
172
|
$
|
(5
|
)
|
$
|
144
|
$
|
(37
|
)
|
|||||||
Total comprehensive (loss) / income
|
$
|
(73
|
)
|
$
|
4,477
|
$
|
(1,036
|
)
|
$
|
11,538
|
||||||
Loss per share attributable to the ordinary equity holders of the parent
|
||||||||||||||||
Basic
|
$
|
(0.01
|
)
|
$
|
-
|
$
|
(0.07
|
)
|
$
|
-
|
||||||
Diluted
|
$
|
(0.01
|
)
|
$
|
-
|
$
|
(0.07
|
)
|
$
|
-
|
||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic
|
18,083,182
|
1,138,140
|
17,475,469
|
1,138,140
|
||||||||||||
Diluted
|
18,083,182
|
12,822,570
|
17,475,469
|
12,822,570
|
Three months ended March 31,
|
Nine months ended March 31,
|
|||||||||||||||
US$ in thousands
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||
Income before taxation
|
$
|
94
|
$
|
5,665
|
$
|
902
|
$
|
13,057
|
||||||||
Adjustments to reconcile income before taxation to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
7,258
|
6,347
|
20,680
|
18,460
|
||||||||||||
Amortization of warrant asset
|
229
|
16
|
677
|
551
|
||||||||||||
Gain on disposal of fixed assets
|
-
|
(89
|
)
|
-
|
(73
|
)
|
||||||||||
Gain on lease terminations
|
(852
|
)
|
-
|
(1,044
|
)
|
-
|
||||||||||
Foreign currency translation loss / (gain)
|
26
|
(110
|
)
|
229
|
249
|
|||||||||||
Fair value adjustment
|
4,433
|
(250
|
)
|
10,178
|
632
|
|||||||||||
Phantom expense
|
659
|
(224
|
)
|
913
|
(196
|
)
|
||||||||||
Share-based payments
|
639
|
12
|
3,091
|
77
|
||||||||||||
Provision for retirement benefit expense
|
50
|
-
|
194
|
134
|
||||||||||||
Allowance of expected credit losses
|
(116
|
)
|
4
|
336
|
101
|
|||||||||||
Share of profit from investment in joint venture
|
(174
|
)
|
(75
|
)
|
(400
|
)
|
(414
|
)
|
||||||||
Finance costs
|
2,310
|
2,376
|
6,923
|
7,190
|
||||||||||||
Decrease / (increase) in trade and other receivables
|
626
|
4,957
|
(10,358
|
)
|
8,154
|
|||||||||||
Increase in prepayments and other assets
|
(673
|
)
|
(864
|
)
|
(1,370
|
)
|
(1,400
|
)
|
||||||||
Increase / (decrease) in trade and other payables and other liabilities
|
1,991
|
(1,103
|
)
|
3,043
|
(4,921
|
)
|
||||||||||
Cash generated from operations
|
16,500
|
16,662
|
33,994
|
41,601
|
||||||||||||
Interest paid
|
(2,310
|
)
|
(2,376
|
)
|
(6,923
|
)
|
(7,190
|
)
|
||||||||
Income taxes paid
|
(297
|
)
|
5
|
(2,952
|
)
|
(758
|
)
|
|||||||||
Net cash inflow from operating activities
|
$
|
13,893
|
$
|
14,291
|
$
|
24,119
|
$
|
33,653
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||
Purchase of property and equipment
|
$
|
(5,892
|
)
|
$
|
(1,780
|
)
|
$
|
(14,597
|
)
|
$
|
(4,019
|
)
|
||||
Purchase of other intangible assets
|
(407
|
)
|
(320
|
)
|
(1,274
|
)
|
(485
|
)
|
||||||||
Capital repayment from joint venture
|
146
|
114
|
373
|
309
|
||||||||||||
Net cash outflow from investing activities
|
$
|
(6,153
|
)
|
$
|
(1,986
|
)
|
$
|
(15,498
|
)
|
$
|
(4,195
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||
Proceeds from line of credit
|
$
|
24,684
|
$
|
29,314
|
$
|
91,259
|
$
|
107,525
|
||||||||
Repayments of line of credit
|
(38,104
|
)
|
(36,467
|
)
|
(93,400
|
)
|
(117,485
|
)
|
||||||||
Proceeds from borrowings
|
-
|
-
|
1,714
|
1,000
|
||||||||||||
Repayment of borrowings
|
(3,496
|
)
|
(1,417
|
)
|
(9,323
|
)
|
(4,806
|
)
|
||||||||
Payment of related party loan
|
-
|
-
|
(1,614
|
)
|
-
|
|||||||||||
Net proceeds from initial public offering
|
-
|
-
|
63,107
|
-
|
||||||||||||
Exercise of options
|
28
|
-
|
28
|
-
|
||||||||||||
Payment of listing related cost
|
-
|
-
|
(1,052
|
)
|
-
|
|||||||||||
Principal payments on lease obligations
|
(3,014
|
)
|
(2,790
|
)
|
(14,644
|
)
|
(8,935
|
)
|
||||||||
Dividends paid
|
-
|
-
|
(4,000
|
)
|
(121
|
)
|
||||||||||
Net cash (outflow) / inflow from financing activities
|
$
|
(19,902
|
)
|
$
|
(11,360
|
)
|
$
|
32,075
|
$
|
(22,822
|
)
|
|||||
Effects of exchange rate difference on cash and cash equivalents
|
99
|
(5
|
)
|
(14
|
)
|
(38
|
)
|
|||||||||
Net (decrease) / increase in cash and cash equivalents
|
$
|
(12,063
|
)
|
$
|
940
|
$
|
40,682
|
$
|
6,598
|
|||||||
Cash and cash equivalents at beginning of the period
|
$
|
74,615
|
$
|
14,531
|
$
|
21,870
|
$
|
8,873
|
||||||||
Cash and cash equivalents at end of the period
|
$
|
62,552
|
$
|
15,471
|
$
|
62,552
|
$
|
15,471
|
Three months ended March 31,
|
Nine months ended March 31,
|
||||||||||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||||||||||||||||||
US$ in thousands, except share and per share amounts, unaudited
|
Amount
|
Per Share
|
Amount
|
Per Share
|
Amount
|
Per Share
|
Amount
|
Per Share
|
|||||||||||||||||||||||
Net (loss) / income
|
$
|
(245
|
)
|
$
|
(0.01
|
)
|
$
|
4,482
|
$
|
0.35 (d)
|
$
|
(1,180
|
)
|
$
|
(0.07
|
)
|
$
|
11,575
|
$
|
0.90 (d)
|
|||||||||||
Non-recurring expenses
|
1,848
|
0.10
|
801
|
0.06
|
7,839
|
0.45
|
1,397
|
0.11
|
|||||||||||||||||||||||
Amortization of warrant asset
|
229
|
0.01
|
16
|
0.00
|
677
|
0.04
|
551
|
0.04
|
|||||||||||||||||||||||
Gain on disposal of fixed assets
|
-
|
-
|
(89
|
)
|
(0.01
|
)
|
-
|
-
|
(73
|
)
|
(0.01
|
)
|
|||||||||||||||||||
Gain on lease terminations
|
(852
|
)
|
(0.05
|
)
|
-
|
-
|
(1,044
|
)
|
(0.06
|
)
|
-
|
-
|
|||||||||||||||||||
Fair value adjustment
|
4,433
|
0.25
|
(250
|
)
|
(0.02
|
)
|
10,178
|
0.58
|
632
|
0.05
|
|||||||||||||||||||||
Share-based payments
|
1,298
|
0.07
|
(212
|
)
|
(0.02
|
)
|
4,004
|
0.23
|
(119
|
)
|
(0.01
|
)
|
|||||||||||||||||||
Foreign exchange losses
|
44
|
0.00
|
164
|
0.01
|
247
|
0.01
|
523
|
0.04
|
|||||||||||||||||||||||
Total adjustments
|
$
|
7,000
|
$
|
0.39
|
$
|
430
|
$
|
0.03
|
$
|
21,901
|
$
|
1.25
|
$
|
2,911
|
$
|
0.23
|
|||||||||||||||
Tax impact of adjustments(a)
|
(722
|
)
|
(0.04
|
)
|
(243
|
)
|
(0.02
|
)
|
(2,901
|
)
|
(0.17
|
)
|
(289
|
)
|
(0.02
|
)
|
|||||||||||||||
Adjusted net income and adjusted earnings per share
|
$
|
6,033
|
$
|
0.33
|
$
|
4,669
|
$
|
0.36
|
$
|
17,820
|
$
|
1.02
|
$
|
14,197
|
$
|
1.11
|
|||||||||||||||
Adjusted net income margin
|
5.5
|
%
|
4.6
|
%
|
5.3
|
%
|
4.7
|
%
|
|||||||||||||||||||||||
Weighted average shares outstanding - diluted
|
18,083,182
|
$
|
0.33
|
12,822,570
|
$
|
0.36
|
17,475,469
|
$
|
1.02
|
12,822,570
|
$
|
1.11
|
|||||||||||||||||||
Dilutive impact of shares issued on August 7, 2020(b)
|
-
|
$
|
-
|
3,571,429
|
$
|
(0.07
|
)
|
-
|
$
|
-
|
3,076,121
|
$
|
(0.19
|
)
|
|||||||||||||||||
Dilutive impact of preferred share conversion on August 7, 2020(b)
|
-
|
$
|
-
|
1,785,565
|
$
|
(0.03
|
)
|
-
|
$
|
-
|
1,785,565
|
$
|
(0.11
|
)
|
|||||||||||||||||
Dilutive impact of share-based compensation and the Amazon warrant(b)
|
737,826
|
$
|
(0.01
|
)
|
641,444
|
$
|
(0.01
|
)
|
756,977
|
$
|
(0.04
|
)
|
548,190
|
$
|
(0.03
|
)
|
|||||||||||||||
Pro forma adjusted weighted average shares outstanding - diluted and pro forma adjusted earnings per share - diluted(c)
|
18,821,008
|
$
|
0.32
|
18,821,008
|
$
|
0.25
|
18,232,446
|
$
|
0.98
|
18,232,446
|
$
|
0.78
|
(a)
|
The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdiction.
|
(b)
|
Represents the dilutive impact of (i) an incremental 3,571,429 and 3,076,121 weighted average shares outstanding for the three and nine months ended March 31, 2021,
respectively, as a result of our initial public offering completed on August 7, 2020, (ii) an incremental 1,785,565 weighted average shares outstanding due to the conversion of preferred shares to common shares in connection with our
initial public offering on August 7, 2020 and (iii) incremental weighted average shares outstanding resulting from vesting of awards under share-based compensation plans and vesting of the Amazon warrant, using the treasury stock method
(as applicable) during the periods presented.
|
(c)
|
We provide “pro forma adjusted earnings per share – diluted” to illustrate the impact on the calculation of adjusted earnings per share of taking into account the dilutive
impact of the shares issued in our initial public offering on August 7, 2020, the dilutive impact of the preferred share conversion on August 7, 2020, and the dilutive impact related to vesting of awards under share-based compensation
plans and the Amazon warrant on the calculation of weighted average shares outstanding – diluted, resulting in pro forma adjusted weighted average shares outstanding – diluted. We have used 18,821,008 and 18,232,446 shares, the pro
forma adjusted weighted average shares outstanding – diluted for the three and nine months ended March 31, 2021, respectively, to calculate pro forma adjusted earnings per share – diluted for the three and nine months ended March 31,
2020. We believe that pro forma adjusted earnings per share – diluted is useful information for investors because it enhances comparability between the current period and prior periods. This non-GAAP measure will be recalculated each
reporting period based on the pro forma adjusted weighted average shares outstanding – diluted for the latest reporting periods. Therefore, pro forma adjusted earnings per share – diluted in future periods may differ from pro forma
adjusted earnings per share – diluted presented in prior periods. Pro forma adjusted earnings per share – diluted may not be comparable to other similarly titled measures of other companies, has limitations as an analytical tool and
should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB.
|
(d)
|
See Note 20 to our audited consolidated financial statements included in our annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission on October 23, 2020 for additional information regarding the calculation of basic and diluted earnings / (loss) per share attributable to equity holders of
the parent and weighted average shares outstanding – basic and diluted. For the periods noted, the amount represents net income divided by the weighted average shares outstanding – diluted for the period presented.
|
Three months ended March 31,
|
Nine months ended March 31,
|
|||||||||||||||
US$ in thousands
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Net (loss) / income
|
$
|
(245
|
)
|
$
|
4,482
|
$
|
(1,180
|
)
|
$
|
11,575
|
||||||
Finance expense
|
$
|
2,310
|
$
|
2,376
|
6,923
|
7,190
|
||||||||||
Income tax expense
|
$
|
339
|
$
|
1,183
|
2,082
|
1,482
|
||||||||||
Depreciation and amortization
|
$
|
7,258
|
$
|
6,347
|
20,680
|
18,460
|
||||||||||
EBITDA
|
$
|
9,662
|
$
|
14,388
|
$
|
28,505
|
$
|
38,707
|
||||||||
Non-recurring expenses
|
$
|
1,848
|
$
|
801
|
7,839
|
1,397
|
||||||||||
Amortization of warrant asset
|
$
|
229
|
$
|
16
|
677
|
551
|
||||||||||
Gain on disposal of fixed assets
|
$
|
-
|
$
|
(89
|
)
|
-
|
(73
|
)
|
||||||||
Gain on lease terminations
|
$
|
(852
|
)
|
$
|
-
|
(1,044
|
)
|
-
|
||||||||
Fair value adjustment
|
$
|
4,433
|
$
|
(250
|
)
|
10,178
|
632
|
|||||||||
Share-based payments
|
$
|
1,298
|
$
|
(212
|
)
|
4,004
|
(119
|
)
|
||||||||
Foreign exchange losses
|
$
|
44
|
$
|
164
|
247
|
523
|
||||||||||
Adjusted EBITDA
|
$
|
16,662
|
$
|
14,818
|
$
|
50,406
|
$
|
41,618
|
||||||||
Adjusted EBITDA margin
|
15.3
|
%
|
14.7
|
%
|
15.1
|
%
|
13.7
|
%
|
Three months ended March 31,
|
Nine months ended March 31,
|
|||||||||||||||
US$ in thousands
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Net cash provided by operating activities
|
$
|
13,893
|
$
|
14,291
|
$
|
24,119
|
$
|
33,653
|
||||||||
Less:
|
||||||||||||||||
Capital expenditures - cash
|
6,299
|
2,100
|
15,871
|
4,504
|
||||||||||||
Free cash flow(1)
|
$
|
7,594
|
$
|
12,191
|
$
|
8,248
|
$
|
29,149
|
US$ in thousands
|
March 31, 2021
|
June 30, 2020
|
||||||
Borrowings
|
||||||||
Non-current
|
$
|
3,745
|
$
|
3,782
|
||||
Current
|
23,059
|
27,476
|
||||||
$
|
26,804
|
$
|
31,258
|
|||||
Leases
|
||||||||
Non-current
|
73,030
|
62,044
|
||||||
Current
|
11,386
|
12,668
|
||||||
$
|
84,416
|
$
|
74,712
|
|||||
Total debt
|
$
|
111,220
|
$
|
105,970
|
||||
Cash and cash equivalents
|
62,552
|
21,870
|
||||||
Net debt
|
$
|
48,668
|
$
|
84,100
|