Tribe Reports First Quarter 2021 Revenue of $3.79 Million, a 253% Increase Over Revenue in First Quarter 2020

/NOT FOR DISTRIBUTION IN THE U.S. OR TO U.S. NEWSWIRE SERVICES./

VANCOUVER, BC, May 31, 2021 /CNW/ - Tribe Property Technologies Inc. (TSXV:TRBE) ("Tribe" or the "Company") a leading provider of technology-enabled property management solutions, today announced its financial results for the three months ended March 31, 2021.

Quarterly Business Highlights

• Reported record revenue and strong gross margin² percentage improvement
• Completed its going-public transaction, releasing $13.3 million of cash from its previously announced subscription receipts financings
• Began trading on the TSX Venture Exchange under the symbol "TRBE"
• Appointed a new Board of Directors which now includes four external directors, Charmaine Crooks, Andrew Kiguel, Michael Willis and Raymond Choy, in addition to the Company's Chief Executive Officer, Joseph Nakhla
• Appointed capital markets veteran Jim Defer as Chief Financial Officer and re-positioned John Tims as Corporate Secretary
• Made significant progress in the integration of Gateway Property Management ("Gateway") including granting senior management roles in the Company to Gateway employees

First Quarter Fiscal 2021 Summary

Financial information is reported in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS"). Tribe achieved revenue growth of 253% in the first quarter of 2021 over the same period in the prior year driven by the acquisition of Gateway which expanded the Company's geographical footprint in the condo management services sector to the provinces of Alberta and Ontario, as well as significantly increased the scale of Tribe's rental management business. Revenue was $3,786,129 representing an increase from $1,071,851 in the first quarter of 2020. Gross profit margin² increased in both dollar terms and in percentage terms. Tribe recorded a net loss of $3,159,432, which included $1,634,456 of listing expenses and professional fees associated with the public listing. Adjusted EBITDA¹, which management believes is a better proxy for the Company's cash flows, was a loss of $539,202.

CEO Message

"We are  very pleased by Tribe's strong first quarter as a public company. We saw substantial revenue growth of over 250% compared to the same period last year which was driven by our acquisition of Gateway which expanded our market penetration into more homes and communities. As we embark on increasing our footprint in Canada, we are putting significant operational focus on service delivery from our seven offices across the country," stated Joseph Nakhla, Chief Executive Officer of Tribe.

"Tribe will continue to make investments in our products for future growth, supporting the infrastructure required to digitize homes and simplify the complexities of the traditional, paper-based residential property management space. To complement our investment in our product and service offerings, we also plan to continue to employ an active acquisition strategy to identify and purchase attractive targets at accretive multiples, like the Gateway acquisition we made at the end of 2020. We have made significant progress in the successful integration of Gateway into Tribe and our recurring revenue base from software and services has grown substantially," continued Mr. Nakhla.

Financial Highlights

Three Month Comparative Results

The Company reported revenue of $3,786,129, up 253% over the same period in the prior year of $1,071,851. The increase in revenue was primarily due to revenue generated via the integration of Gateway. The Company had a net loss of $3,159,432 for the three months ended March 31, 2021, compared to a net loss of $518,152 in the same period of 2020, including all costs attributed to the public listing in the quarter.

Gross margin² in the first quarter of 2021 was $1,768,489 (46.7%), which was higher than the $345,358 (32.2%) gross margin in the same period in the prior year. The increase in gross margin was a result of the addition of service contracts associated with the Gateway acquisition, and the increase in gross margin percentage was driven by economies of scale from a larger property management services business.

Adjusted EBITDA¹ was as follows:

	Three months ended March 31, 2021	Three months ended March 31, 2020
Net loss	$ (3,159,432)	$ (518,152)
Add: Depreciation and amortization	318,593	99,970
Add: Interest expense	278,452	15,491
Add: Stock-based compensation	339,617	-
Add: Listing expense and professional fees with the public listing	1,634,456	-
Add: Income tax expense	57,103	-
Add/subtract: Other	(7,991)	735
Adjusted EBITDA^1	$ (539,202)	$ (401,956)

Financial Position as of March 31, 2021

Working capital³ as of March 31, 2021 was $3,370,357 (which included cash and cash equivalents of $6,751,379). This is compared to negative working capital of $9,593,526 as of December 31, 2020 (which included cash and cash equivalents of $908,009).

Financial Statements and Management Discussion & Analysis

Please see the consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The consolidated financial statements for the three months ended March 31, 2021 and related MD&A have been reviewed and approved by Tribe's Audit Committee and Board of Directors. Tribe recognizes that the majority of its investors are now accessing corporate and financial information either through pushed news services, directly from www.tribetech.com or SEDAR. Thus, Tribe has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.tribetech.com.

Non-IFRS Measures

The following and preceding discussion of financial results includes reference to gross margin, gross profit margin, Adjusted EBITDA and working capital, which are all non-IFRS financial measures. The measure of gross margin and gross profit margin² is provided as management believes this is a good indicator in evaluating the operating performance of the Company. Adjusted EBITDA¹ is provided as a proxy for the cash earnings from the operations of the business as operating income (loss) for the Company includes non-cash amortization and depreciation expense and share-based compensation which are classified as other operating expenses. The measure of working capital³ is provided as management believes this is a good indicator of the operating liquidity available to the Company.

Financial Webcast

The Company will hold a webcast to discuss its performance with the investment community at 5:30 a.m. PT on June 1, 2021. 

Webcast URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=1B464CBC-61F8-4120-A143-610660AFF980 

 Audio Only Dial-In

Toll Free Dial-In Number:	[phone]
International Dial-In Number:	[phone]
Conference ID:	8770659

About Tribe Property Technologies

Tribe is a property technology company that is disrupting the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe's integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers.

Tribe seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Tribe's platform decreases customer acquisition costs, increases retention and allows for the addition of value-added products and services through the platform. Visit tribetech.com for more information.

ON BEHALF OF THE BOARD

"Joseph Nakhla"

Chief Executive Officer

Tribe Property Technologies Inc.
Joseph Nakhla
Chief Executive Officer
1155 West Pender Street, Suite 419
Vancouver, British Columbia V63 2P4
Phone: [phone]
Email: [email protected]

¹ Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. Adjusted EBITDA is also not a measure recognized in accordance with IFRS and does not have a prescribed or standardized meaning by IFRS. The Company defines Adjusted EBITDA as net income or loss excluding the impact of listing expenses associated with the RTO, interest expense and finance costs, foreign exchange gains and losses, current and deferred income taxes, depreciation and amortization, stock-based compensation, fair value gains and losses on investments, and other expenses. It should be noted that Adjusted EBITDA is not defined under IFRS and may not be comparable to similar measures used by other entities. The Company believes Adjusted EBITDA is a useful measure as it provides important and relevant information to management about the operating and financial performance of the Company. Adjusted EBITDA also enables management to assess its ability to generate operating cash flow to fund future working capital needs, and to support future growth. Excluding these items does not imply that they are non-recurring or not useful to investors. Investors should be cautioned that Adjusted EBITDA attributable to shareholders should not be construed as an alternative to net income (loss) or cash flows as determined under IFRS.

² Non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross profit and gross profit margin do not have a standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other issuers. The Company defines gross profit as revenue less cost of software and services and software licensing fees, and gross profit margin as gross profit calculated as a percentage of revenue. Gross profit and gross margin should not be construed as an alternative for revenue or net loss in accordance with IFRS. The Company believes that gross profit and gross margin are meaningful metrics in assessing the Company's financial performance and operational efficiency.

³ Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. This measure does not have a comparable IFRS measure. The Company defines working capital as current assets less current liabilities.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement on Forward-Looking Information

This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws regarding the Company and its business, which may include, but are not limited to, statements with respect to the aims and goals of the Company; financial projections; growth plans including future prospective consolidation in the rental management sector; future acquisitions by the Company; beliefs of the Company with respect to the independent owner-investors market; and prospective benefits of the Company's platform. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to proposed financing activity, proposed acquisitions, proposed success of the Company's platform, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. The Company does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The Company has not registered and will not register the securities under the U.S. Securities Act. The Company does not intend to engage in a public offering of their securities in the United States.

SOURCE Tribe Property Technologies Inc.

Jim Defer, CPA, CA, CBV, Chief Financial Officer, Tribe Property Technologies Inc., Email: [email protected]

Related Links

https://tribetech.com/