Kelowna, British Columbia – TheNewswire – May 11, 2021 – Decisive Dividend Corporation (TSXV:DE) (the “Company” or “Decisive”) reported its financial results for the three months ended March 31, 2021. All amounts are expressed in Canadian dollars. The Company’s Q1 unaudited interim condensed consolidated financial statements as well as its management’s discussion and analysis (“MD&A”) are posted on SEDAR and on Decisive’s website (www.decisivedividend.com).
Q1 2021 Highlights:
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– Consolidated sales increased 8% to $13.9 million compared to $12.9 million in Q1 2020.
– Consolidated gross profit increased 10% to $5.2 million from $4.7 million in Q1 2020. Gross profit percentages also improved to 37% from 36% in the comparative period of 2020.
– Consolidated Adjusted EBITDA* increased to $2.2 million, up 31% relative to Q1 2020, driven by the above noted increases in sales and gross profit.
– Blaze King achieved record sales each month during the quarter. The result was an 83% increase in Blaze King sales relative to Q1 2020, as demand for their products has remained robust amid the COVID-19 economic backdrop.
– Slimline, Unicast and Northside each demonstrated resilience in the quarter and sales remained relatively consistent compared to Q1 2020.
– Hawk sales improved in the quarter compared to the last three quarters of 2020, although sales were lower than in Q1 2020. Activity in Q1 2020 was relatively strong for Hawk, before the onset of COVID-19 and a significant decline in oil prices limited demand for Hawk’s products through the remainder of 2020.
– Consolidated net profit in the quarter was $0.3 million, or $0.02 per share, an increase of $1.4 million compared to Q1 2020. The Q1 2020 net loss included a $1.4 million non-cash impairment loss being recorded against Hawk’s goodwill.
Selected Financial Highlights
The following are selected financial highlights of Decisive for the three months ended March 31, 2021.
|
(Stated in thousands of dollars, except per share amounts) |
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|
For the three months ended March 31, |
2021 |
2020 |
Change |
||||||||||||
|
Sales |
$ |
13,945 |
$ |
12,945 |
8% |
||||||||||
|
Gross profit |
5,157 |
4,680 |
10% |
||||||||||||
|
Gross profit % |
37% |
36% |
|||||||||||||
|
Adjusted EBITDA* |
2,165 |
1,653 |
31% |
||||||||||||
|
Per share basic |
0.18 |
0.14 |
28% |
||||||||||||
|
Profit (loss) before tax |
485 |
(921) |
|||||||||||||
|
Profit (loss) |
278 |
(1,088) |
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|
Per share basic |
0.02 |
(0.09) |
|||||||||||||
|
Per share diluted |
0.02 |
n/a |
|||||||||||||
|
Dividends declared |
– |
1,037 |
-100% |
||||||||||||
|
Per share basic |
– |
0.09 |
-100% |
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* 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 and restructuring costs, and any unusual non-operating one-time items such as acquisition costs. Adjusted EBITDA is not a defined performance measure under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers, but it is used by Management to assess the performance of the Company and its segments. See the MD&A for a reconciliation of applicable IFRS measures to non-IFRS measures.
James Paterson, Chief Executive Officer of Decisive, noted:
“Q1 was another positive quarter for our businesses, especially given the current operating environment. Each of the businesses continue to demonstrate resiliency in their operations, and as a group, demonstrate the strength of Decisive’s diversification model. In particular, Blaze King and Slimline were ahead of expectations in the quarter, as Blaze King’s increased market share combined with Slimline’s robust sprayer sales generated strong operating results in that segment of the business. This positive momentum has continued into Q2, with current wood stove and sprayer orders well ahead of last year. Unicast, Northside, and Hawk also continue to prove their resiliency through this challenging economic period and the outlook for these businesses are all improving to varying degrees as underlying commodity and other economic indicators continue to improve.
We announced the reinstatement of the monthly dividend last month, and payment of that $0.02 per share dividend is occurring in a few days. I am very pleased that we are in a position to recommence monthly dividend payments and note that we do intend to revisit the amount of the dividend in the second half of the year with the aim of returning it to pre-pandemic levels. Since the onset of the pandemic, we have managed ourselves with an abundance of caution, and given there remains economic uncertainty in 2021, we will continue to operate cautiously. However, the steps taken through this last year have also put us in a position of strength as we continue to work towards completing our next acquisition from our healthy, and growing, pipeline of potential targets.”
Outlook:
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– Diversity of the portfolio continues to drive overall performance through the challenging economic environment.
– The positive momentum from the last three quarters has continued into Q2 and each of the businesses in the Group have a stronger outlook than they did a year ago.
– Decisive has reinstated a $0.02 monthly dividend effective May 2021. Should the recent positive momentum in its operations continue and not be hindered by the pandemic or unforeseen economic headwinds, Decisive expects it will be in a position to consider returning the dividend to pre-pandemic levels at some point in the second half of the year.
– Decisive has strengthened its balance sheet over the last year, reducing overall debt and increasing liquidity. As of the reporting date, Decisive had $4.5 million in cash on hand and no amounts drawn on its operating line.
– Decisive continues to identify and evaluate potential acquisitions which, if completed, will bolster its diversity and add strength and resilience to operations.
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented company, focusing on the manufacturing sector. The Company uses a disciplined acquisition strategy to identify profitable, established companies that have strong management teams, generate steady cash flow, operate in non-cyclical markets, and have opportunity for future growth.
For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
Telephone: (250) 870-9146
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.
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 “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions 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, the Company’s long-term strategic and operational plans, potential future acquisitions, potential future debt repayments, potential future capital expenditures, potential future share purchases under the normal course issuer bid, the consideration of a possible increase in the Company’s monthly dividend in the second half of 2021, as well as forward-looking information relating to the impact of the ongoing COVID-19 pandemic on the operations and financial results of the Company and its subsidiaries and the availability 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: general economic conditions; pandemic; competition; government regulation; environmental regulation; access to capital; market trends and innovation; climate risk; general uninsured losses; risk 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 warrant claims; litigation; reliance on technology and intellectual property risks; availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; dividends; trading volatility of common shares; dilution risk; 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.sedar.com. There can be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare a dividend or reinstate a regular dividend policy in the future. 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.
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