Decisive Dividend Corporation Reports Financial Results for the Three Months Ended March 31, 2025

KELOWNA, BC, May 6, 2025 /CNW/ - Decisive Dividend Corporation (TSXV: DE) (the "Company" or "Decisive") today reported its financial results for the three months ended March 31, 2025.

Highlights of the Company's financial performance in Q1 2025 include the following:

• Decisive and its diversified portfolio of manufacturing businesses delivered strong operating results in Q1 2025, which was the strongest first quarter in the Company's history.
• Consolidated sales increased 34% to $39.2 million in Q1 2025, the highest revenue quarter in Decisive's history, compared to $29.4 million in Q1 2024, with the sales increase balanced throughout the portfolio.
• Decisive generated $7.0 million in Adjusted EBITDA* in Q1 2025, an increase of 76% relative to Q1 2024, representing 94% of the Adjusted EBITDA* generated in both Q1 2024 and Q2 2024 combined.
• Decisive generated $3.6 million in Free Cash Flow less Maintenance Capital* in Q1 2025, an increase of 128% relative to Q1 2024, representing 128% of the Free Cash Flow less Maintenance Capital* generated in both Q1 2024 and Q2 2024 combined. This dramatic improvement drove the trailing twelve-month dividend payout ratio down to 82% in Q1 2025, from 96% in Q4 2024.
• To the date of this press release, year-to-date 2025 consolidated order levels have outpaced the same periods in both 2023 and 2024, while being based on more balanced contributions from across the Group. Consolidated sales have also outpaced 2024, although they remain behind consolidated sales for the same period in 2023.
• The higher year-to-date order levels resulted in the Group exiting Q1 2025 with 60% higher backlogs than it had at the end of Q1 2024.
• There remains significant uncertainty surrounding United States trade policies and what impact those policies may have on the overall economy. Decisive is currently somewhat insulated from the direct impact of tariffs as substantially all products manufactured by the Group and sold into the United States are compliant with the Canada-United States-Mexico Agreement. Additionally, Q2 2025 order levels, to the date of this press release, continue to outpace Q2 2024 and Q2 2023 order levels.
• Expected continued operational improvement in Q2 2025, relative to Q2 2024, should continue to reduce the payout ratio through the next quarter.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

"Q1 2025 is the strongest first quarter and the strongest revenue quarter in Decisive's history, following on the heals of our Q4 2024 performance, which was the strongest fourth quarter in Decisive's history. With the strength of this operational performance, we are back on the path of improving per share financial metrics (on a trailing twelve-month basis), which is the path of value creating growth.

We are especially pleased with the balanced contribution to the year-over-year improvement in operating metrics from across our diverse portfolio of businesses, illustrating the benefits of diversification while also demonstrating the work done in each subsidiary to improve performance and return to organic growth.

The strength of our operating results also continues to demonstrate the strength in the free cash flow generation capabilities of our business and the sustainability of the current dividend level. Our trailing twelve-month dividend payout ratio improved to 82% from 96% at the end of Q4 2024. In addition, the improved operating results led to reduced leverage ratios, which improves our financing capacity.

Despite the uncertainty imposed on industry by the United States administration's trade policies and the election in Canada, our to date order levels and backlogs in Q2 2025, relative to Q2 2024, result in an expectation of continued operational improvement in Q2 2025, relative to Q2 2024. This should result in continued improvement in our payout ratio and leverage ratio lower, which will support further financing capacity and improvement in our cost of capital to support acquisition activity as the year progresses. 

While all businesses are currently facing varying degrees of economic uncertainty, we have a diverse portfolio of businesses that produce differentiated products with large addressable markets. Decisive's leadership group, which includes its dedicated business leaders and its experienced independent board of directors, are committed to strengthening the teams, strategies and processes that support long term growth. This continues to give us confidence in Decisive's business model and the potential for long-term growth within it."

James Paterson, Board Chair of Decisive, noted:

"Decisive's strong Q1 2025 operating results are directly related to the combined efforts of management and the subsidiary Presidents to ensure a more balanced and sustainable contribution to our financial success. There was a lot of work undertaken last year, in particular during last year's challenging first two quarters, which generated a stronger and more balanced subsidiary group success that directly contributes to the success of our company. This resulted in Q4 2024 and now Q1 2025 being record quarters and demonstrate that the board and management's joint efforts to create sustainable long-term value for Decisive stakeholders is working. The board commends the entire Decisive leadership team for delivering the strongest first quarter in Decisive's history." 

Selected Financial Information:

The following is selected financial information of Decisive for the three months ended March 31, 2025. 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+ at www.sedarplus.ca and on Decisive's website (www.decisivedividend.com).

(Stated in thousands of dollars, except per share amounts)
For the three months ended March 31,										2025			2024		Change
Sales									$	39,185		$	29,350		34 %
Gross profit										15,071			11,235		34 %
Gross profit %										38 %			38 %
Adjusted EBITDA*										6,995			3,965		76 %
Per share basic										0.35			0.21		67 %
Profit										971			187		419 %
Per share basic										0.05			0.01		400 %
Free cash flow*										3,886			1,898		105 %
Per share basic										0.20			0.10		100 %
Free cash flow less maintenance capital*										3,564			1,565		128 %
Per share basic										0.18			0.08		125 %
Dividends declared										2,666			2,482		7 %
Per share basic										0.14			0.13		8 %
For the trailing twelve month period ended March 31,										2025			2024
Dividend payout ratio*										82 %			66 %

* Adjusted EBITDA, Free Cash Flow, Free Cash Flow Less Maintenance Capital, and Dividend Payout Ratio are not recognized financial measures under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers but are used by management to assess the performance of the Company and its segments. A reader should not place undue reliance on any Non-IFRS financial measures. See "Non-IFRS Financial Measures" later in this press release for detailed descriptions of these measures and reconciliations of applicable IFRS measures to non-IFRS measures.

Q1 2025 Results:

• Consolidated sales increased 34% to $39.2 million compared to sales of $29.4 million in Q1 2024. The overall sales increase in Q1 2025 compared to Q1 2024 was driven by strong sales activity throughout the portfolio, with both the Finished Product segment and the Component Manufacturing segment posting sales increases in the quarter relative to Q1 2024. In the Component Manufacturing segment, each of Unicast, Hawk and Northside achieved over 20% sales increases in the quarter relative to Q1 2024 with Techbelt, which was acquired in April 2024, also contributing to the increase, generating quarterly sales levels well ahead of pre-acquisition averages. In terms of the Finished Product segment, the increase in Q1 2025 sales was driven by a 60% increase in IHT sales relative to Q1 2024, over 35% sales increases in each of Slimline, Marketing Impact and Capital I, and a 17% increase in hearth division sales, which includes Blaze King and ACR.
• Consolidated gross profit increased 34% to $15.1 million from $11.2 million in Q1 2024, based primarily on the increase in sales with gross profit percentages consistent year-over-year.
• Consolidated Adjusted EBITDA* increased to $7.0 million, up 76% relative to Q1 2024 Adjusted EBITDA*. 
• Consolidated net profit in the quarter was $1.0 million, or $0.05 per share, compared to net profit of $0.2 million, or $0.01 per share, in Q1 2024.
• Consolidated free cash flow* increased 105% to $3.9 million relative to Q1 2024.
• Increased sales in the quarter, as described above, was the main driver of the increase in Adjusted EBITDA* and free cash flow* relative to Q1 2024. Increases in financing costs and a $0.8 million increase in non-cash share-based compensation, as well as foreign exchange losses also impacted net profit and net profit per share in the quarter relative to Q1 2024.

Conference Call

Decisive will host a conference call for interested parties to discuss the Company's Q1 2025 results. The call will be hosted by Jeff Schellenberg, Decisive's Chief Executive Officer and Rick Torriero, Chief Financial Officer.

Details for those who wish to participate in this conference call are as follows:

Conference Call Details:
Wednesday, May 7, 2025, at 8:00am Pacific Time / 11:00am Eastern Time
(please call 10 minutes ahead of time)

Participant Information:
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/43MK0sK to receive an instant automated call back.

You can also dial direct to be entered into the call by an operator:
Dial in number – North America (toll free): 1-888-510-2154
Dial in number – United Kingdom (toll free): 0800 279 7040
Dial in number – International: [phone]

Replay Information (replay available until May 14, 2025):
Replay number – North America (toll free): 1-888-660-6345
Replay number – International: [phone]
Replay access code 75926#

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.

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", "Free Cash Flow", "Growth Capital Expenditures", "Maintenance Capital Expenditures" and "Dividend Payout Ratio", which are not recognized financial measures under IFRS Accounting Standards, but are believed to be meaningful in the assessment of the Company's performance as defined below.

"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. Adjusted EBITDA per share is also presented, which is calculated by dividing Adjusted EBITDA, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow" is defined as cash provided by operating activities, as defined by IFRS Accounting Standards, adjusted for changes in non-cash working capital, timing considerations between current income tax expense and income taxes paid, interest payments, required principal payments on long-term debt and right of use lease liabilities, and any unusual non-operating one-time items such as acquisition and restructuring costs (as described above).

Free Cash Flow is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities.

The most directly comparable financial measure is cash provided by operating activities. Adjustments made to cash provided by operating activities in the calculation of Free Cash Flow include other IFRS Accounting Standards measures, including changes in non-cash working capital, current income tax expense, income taxes paid, interest paid, and principal payments on long-term debt and right of use lease liabilities.

Free Cash Flow per share is also presented, which is calculated by dividing Free Cash Flow, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow Less Maintenance Capital" is defined as Free Cash Flow, as defined above, less Maintenance Capital Expenditures, as defined below. Free Cash Flow Less Maintenance Capital is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company.

The Company presents Free Cash Flow Less Maintenance Capital Expenditures per share, which is calculated by dividing Free Cash Flow Less Maintenance Capital, as defined above, by the weighted average number of shares outstanding during the period.

"Growth and Maintenance Capital Expenditures" maintenance capital expenditures are defined as capital expenditures required to maintain the operations of the Group at the current level and are net of proceeds from the sale of property and equipment. Growth capital expenditures are defined as capital expenditures that are expected to generate incremental cash inflows and are not considered by management in determining the cash flows required to sustain the current operations of the Company. While there are no comparable IFRS Accounting Standards measures for Maintenance Capital Expenditures or Growth Capital Expenditures, the total of Maintenance Capital Expenditures and Growth Capital Expenditures is equivalent to the total purchases of property and equipment, net of proceeds from the sale of property and equipment, on the Company's statement of cash flows.

"Dividend Payout Ratio" the Company presents a dividend payout ratio, which is calculated by dividing dividends declared by the Company by Free Cash Flow Less Maintenance Capital, as defined above. The Dividend Payout Ratio is a financial ratio used by management to analyze the percentage of cash generated from operations, before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company, returned to shareholders as dividends. Dividend Payout Ratio is analyzed on a trailing twelve-month basis in order to reduce the impact of seasonality on the analysis. 

While the above Non-IFRS financial measures are used by management to assess the historical financial performance of the Company, readers are cautioned that:

• Non-IFRS financial measures, such as Adjusted EBITDA, Free Cash Flow, Growth Capital Expenditures, Maintenance Capital Expenditures and Dividend Payout Ratio, are not recognized financial measures under IFRS Accounting Standards;
• The Company's method of calculating Non-IFRS financial measures 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 should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash provided by 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 Accounting Standards measures.

Adjusted EBITDA

(Stated in thousands of dollars)
For the three months ended March 31,								2025			2024
Profit for the period							$	971		$	187
Add (deduct):
Financing costs								1,378			1,217
Income tax expense								730			159
Amortization and depreciation								2,641			2,157
Acquisition and restructuring costs								7			187
Share-based compensation expense								1,152			310
Foreign exchange losses (gains)								125			(232)
Other income								(6)			(17)
Gain on sale of equipment								(3)			(3)
Adjusted EBITDA								6,995			3,965

Free Cash Flow

(Stated in thousands of dollars)
For the three months ended March 31,								2025			2024
Cash provided by operating activities							$	5,214		$	(440)
Add (deduct):
Changes in non-cash working capital								478			3,513
Income taxes paid								1,302			722
Current income tax expense								(1,188)			(401)
Acquisition and restructuring costs								7			187
Interest paid								(1,297)			(1,192)
Lease payments								(569)			(435)
Required principal repayments on debt								(61)			(56)
Free cash flow								3,886			1,898

Free Cash Flow Less Maintenance Capital and Dividend Payout Ratio

(Stated in thousands of dollars)
For the trailing twelve month period ended March 31,								2025			2024
Cash provided by operating activities							$	18,432		$	15,382
Add (deduct):
Changes in non-cash working capital								1,422			4,032
Income taxes paid								2,687			3,707
Current income tax expense								(1,623)			(3,768)
Acquisition and restructuring costs								857			1,163
Interest paid								(5,497)			(4,131)
Lease payments								(2,262)			(1,610)
Required principal repayments on debt								(235)			(228)
Free cash flow								13,781			14,547
Maintenance capital expenditures								(917)			(1,188)
Free cash flow less maintenance capital								12,864			13,359
Dividends declared								10,584			8,788
Dividend payout ratio								82 %			66 %

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 "believes", "expects", "could", "will", "may", "intends", "projects", "anticipates", "plans", "estimates", "continues" and similar words or the negative and grammatical variations thereof 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, Q2 2025 demand levels, demand from customers, the timing of product sales and/or deliveries under existing customer contracts or orders received from customers, potential future acquisitions, and improved operating performance in Q2 2025 leading to increased per share financial metrics, payout ratio improvement, improved financing capacity and improved cost of capital. 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: (i) operational risks, including risks 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; (ii) financial risks, including risks relating to the availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; dividends; trading volatility of common shares; dilution risk; (iii) external risks, including risks relating to general economic conditions; government regulation (including trade restrictions and tariffs); pandemics; competition; environmental regulation; access to capital; market trends and innovation; climate risk; general uninsured losses; and (iv) human capital risks, including 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.sedarplus.ca. There can also 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.

SOURCE Decisive Dividend Corporation

FOR FURTHER INFORMATION PLEASE CONTACT: Jeff Schellenberg, Chief Executive Officer; Rick Torriero, Chief Financial Officer, #260 - 1855 Kirschner Road, Kelowna, BC V1Y 4N7, Telephone: [phone]