TORONTO, Aug. 27, 2018 /CNW/ - Distinct Infrastructure Group Inc. ("Distinct", "DIG" or the "Company") today released its financial results for the three-month and six-month periods ended June 30, 2018.
Second quarter Revenue of $20.6 million was a 46% increase over the $14.2 million reported in the second quarter of 2017.
EBITDA improved to $1.2 million in the quarter from ($3.7 million) in the second quarter of last year.
Second quarter Net Loss of $1.1 million compares to a Net Loss of $6.9 million in Q2 2017.
Strong results continued in Central Canada following the acquisition of Crown Utilities in November 2017.
Closing of the Company's operations in Edmonton and redeployment of assets to Central and Eastern operations is expected to increase profitability going forward.
Q2 2018 Financial Highlights
All figures in CAD
Three Months Ended
Three Months Ended
June 30, 2018
June 30, 2017 (Restated)
"The second quarter of 2018 represents an important step forward for DIG," said Joe Lanni, DIG's Co-CEO. "Revenue and margins are growing, and we continue to build market share across the GTA and Southern Ontario."
"We remain very pleased with the performance of our operations in Central Canada since the Crown Utilities acquisition," said Alex Agius, DIG's Co-CEO. "The redeployment of assets from Alberta to the Manitoba and Ontario markets should facilitate stronger profitability going forward, and while some client projects in Ontario were slower to ramp-up than originally anticipated, that volume is now materializing."
"Discussions with RBC regarding their ongoing support for the Company are going well," said William Nurnberger, DIG's VP Corporate Development and Acting CFO. "RBC has been a strong and supportive partner for DIG, and we expect to have discussions concluded in the next several days."
"The momentum DIG has established in both our Central and Eastern Canadian operations bodes well for a strong second half of the year," Mr Lanni said. "We expect revenues and EBITDA margins to continue their growth in the second half, especially in the Ontario market."
The construction industry in Canada is seasonal in nature for companies like Distinct that perform most of their work outdoors. As a result, less work is typically performed in the winter and early spring months than in the summer and fall months. Accordingly, Distinct has historically experienced a seasonal pattern in its operating results, with the first half of the year generating lower revenue and profitability than the second half of the year. This pattern is expected to continue in 2018.
Q2 Operating Results
Revenue – Revenues for the quarter ending June 30, 2018 were $20,647,173, a 46 percent increase over the revenues for the same quarter last year of $14,159,114. The increase in revenue was due largely to the inclusion of Crown Utilities for the full quarter. Revenue for the core business in Ontario remained stable.
Gross Profit Margin – Gross profit (revenue less direct costs) reached $4,597,378 for the quarter ended June 30, 2018, an increase of $5,252,581 from the second quarter of 2017. Gross profit margin for the second quarter was 22.3% compared to gross profit margin of (4.6%) for the second quarter of last year. The increase was led by DIG's operations in Manitoba, which posted very strong results. Margins in Ontario, while improved over those recorded in 2017, were impacted by increased investments in anticipation of client programs that got off to a slower than expected start. These programs are now underway, and profit margins in Ontario should continue to improve in the second half of the year as a result.
Net Income / Loss – The Company reported a net loss of $1,138,983 for the second quarter of 2018 as compared to a net loss of $6,944,734 for the second quarter of 2017. The rebound over last year was the result of a series of cost control measures, the refinancing of the Company's debt from one year ago, the addition of Crown Utilities, and improved gross margins in Ontario.
Distinct has scheduled a conference call for 8:30 a.m. (ET) on Tuesday, August 28, 2018. Joe Lanni and Alex Agius, Co-CEOs, and William Nurnberger, Interim CFO and VP Corporate Development, will host the conference call.
Participants should dial 1-877-256-3270 at least 10 minutes prior to the conference time. The reservation number is 21895371. For those unable to attend the call, a replay will be available after 12:00 p.m. at 1-800-558-5253 or 416-626-4100 until midnight on September 11, 2018. The reservation number is 21895371
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About Distinct Infrastructure Group:
Distinct Infrastructure Group Inc. is a turnkey solutions firm providing design, engineering, construction and maintenance services to telecommunication firms, utilities and government bodies. Distinct's full service suite of offerings includes underground construction, aerial construction, inventory management, and technical services including fibre to the building and home. The Company's head offices are located in Toronto, Ontario, with additional offices in Winnipeg, Manitoba.
Non-IFRS / GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS are non-GAAP/IFRS figures. "EBITDA" represents net income plus income tax, finance expense and depreciation. "Adjusted EBITDA" represents EBITDA plus share-based compensation and one-time costs. "Adjusted Net Income" represents net income plus one-time finance expenses. "Adjusted EPS" represents Adjusted Net Income divided by the average number of common shares outstanding for each period and Adjusted Net Income divided by the weighted average number of diluted common shares outstanding.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
SOURCE Distinct Infrastructure Group Inc.
For further information: William Nurnberger, Interim Chief Financial Officer, Distinct Infrastructure Group Inc.| Email: [email protected]|