Investor Presentation
January 2020
TSX: DRT | NASDAQ: DRTT |
Advisory
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Investor Presentation ("Presentation") are "forward-looking statements" within the meaning of "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, and Section 21E of the Exchange Act and "forward-looking information" within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact included in this Presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Presentation, the words "anticipate," "believe," "expect," "estimate," "intend," "plan," "project," "outlook," "may," "will," "should," "would," "could," "can," the negatives thereof, variations thereon and other similar expressions are intended to identify forward- looking statements, although not all forward-looking statements contain such identifying words. In particular, this presentation contains forward-looking statements with respect to, among other things, the Company's business plans and objectives; growth strategy and opportunities; revenue and Adjusted EBITDA targets; reductions in operating costs and the cost of goods sold; plant operations; investments in sales and marketing; sales effectiveness of salesforce and partners; capital investments and major capital initiatives; cash flow and capital allocation, including free cash flow generation; the effectiveness of the new primer line on tile warping issues; the expansion of DIRTT experience centers to new cities; modifications to the Company's capital structure; the effect of R&D activities, including further development of ICE®software and AI; the development of new manufacturing plants and their expected benefits, including increased production; benefits achieved through organizational optimization; implementation of the DIRTT digital strategy framework; customer segmentation and sales execution; market opportunities; and partner support initiatives. Forward-looking statements are based on certain estimates, beliefs, expectations and assumptions made in light of management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that may be appropriate.
Information in this presentation regarding the Company's forecasted revenue and Adjusted EBITDA targets may constitute forward-looking statements, as described above, and may also constitute financial outlook information within the meaning of applicable Canadian securities laws. The Company believes the expectations reflected in such forward-looking statements and financial outlook information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements and financial outlook information should not be unduly relied upon.
Forward-looking statements necessarily involve unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed or implied in such statements. Due to the risks, uncertainties and assumptions inherent in forward-looking information, you should not place undue reliance on forward-looking statements. Factors that could have a material adverse effect on our business, financial condition, results of operations and growth prospects can be found in the sections titled "Risk Factors" in our Registration Statement on Form 10 ("Registration Statement on Form 10"), filed with the United States Securities and Exchange Commission (the "SEC") on September 20, 2019. These risks are not exhaustive. Because of these risks and other uncertainties, our actual results, performance or achievement, or industry results, may be materially different from the anticipated or estimated results discussed in the forward-looking statements in this Presentation. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our past results of operations are not necessarily indicative of our future results. You should not rely on any forward-looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. We undertake no obligation to update these forward-looking statements, even though circumstances may change in the future, except as required under applicable securities laws. We qualify all of our forward-looking statements by these cautionary statements.
CURRENCY AND PRESENTATION OF FINANCIAL INFORMATION
Unless otherwise indicated, all financial information relating to the Company in this Presentation has been prepared in U.S. dollars using accounting principles generally accepted in the United States ("GAAP") and the rules and regulations of the SEC.
2
Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance with GAAP. These GAAP financial statements include non-cash charges and other charges and benefits that we believe are unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult.
As a result, we also provide financial information in this presentation that is not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. Management uses these non-GAAP financial measures in its review and evaluation of the financial performance of the Company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our GAAP results and as a basis to compare our financial performance from period to period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt, or foreign exchange movements on debt revaluation), asset base (depreciation and amortization), tax consequences and stock-based compensation. In addition, management bases certain forward-looking estimates and budgets on non-GAAP financial measures, primarily Adjusted EBITDA.
Reorganization expenses, impairment expenses, depreciation and amortization, and stock-based compensation are excluded from our non-GAAP financial measures because management considers them to be outside of the Company's core operating results, even though some of those expenses may recur, and because management believes that each of these items can distort the trends associated with the Company's ongoing performance. We believe that excluding these expenses provides investors and management with greater visibility to the underlying performance of the business operations, enhances consistency and comparativeness with results in prior periods that do not, or future periods that may not, include such items, and facilitates comparison with the results of other companies in our industry.
The following non-GAAP financial measures are presented in this press release, and a description of the calculation for each measure is included.
Adjusted Gross ProfitGross profit before deductions for depreciation and amortization
Adjusted Gross Profit MarginAdjusted Gross Profit divided by revenue
EBITDANet income before interest, taxes, depreciation and amortization
Adjusted EBITDAEBITDA adjusted for non-cash foreign exchange gains or losses on debt revaluation; impairment expenses; stock-based compensation expense; reorganization expenses; and any other non-core gains or losses
Adjusted EBITDA MarginAdjusted EBITDA divided by revenue
COGS excl. Depreciation & AmortizationCost of goods sold less depreciation and amortization included in cost of goods sold.
COGS excl. Depreciation & Amortization as a % of Revenue COGS excl. Depreciation & Amortization divided by revenue
Net Operating CostsThe sum of sales & marketing, general & administrative, operations support and technology & development expenses less depreciation included therein
Net Operating Costs as a % of Revenue Net Operating Costs divided by revenue
You should carefully evaluate these non-GAAP financial measures, the adjustments included in them, and the reasons we consider them appropriate for analysis supplemental to our GAAP information. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider any of these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. You should also be aware that we may recognize income or incur expenses in the future that are the same as, or similar to, some of the adjustments in these non-GAAP financial measures. Because these non-GAAP financial measures may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
3
Nasdaq: DRTT
TSX:DRT
3 Manufacturing Plants
(4thfacility under construction opening 2021)
~100 North American
Distribution Partner Locations
233 Patents Granted
What is DIRTT?
A superior, sustainable approach to interior construction driving cost and schedule certainty, faster move-in and ultimately increased customer satisfaction.
Proprietary prefabricated interior wall and millwork system, 100% customizable and easily modified post installation
Enabled by proprietary software platform that integrates the design, sale, pricing and manufacturing process
Sold through an extensive North American dealer network that provides pre- construction, design, installation and post-installation maintenance and reconfiguration services
Reduced construction waste through off-site manufacturing and lifetime sustainability driven by flexibility of installed solution
~1,200 Employees
The DIRTT Process
5
Proprietary Design
Unique modular design allows for infinite flexibility to create custominteriors for Commercial, Healthcare, Education and Government
Custom | |||||
Flexible Medical | Millwork, | ||||
Aluminum | Willowglass | MDF tiles | |||
Modular | Gas for | ||||
Frames | Electrical & | Healthcare | surfaces with | finished in | MDF tiles in |
(recycled denim | Data | (Proprietary, modular, fully | HD printed | veneer and | Healthcare |
image, | chromacoat | ||||
insulation) | approved in DIRTT's | ||||
accessible walls) | integrated | ||||
technology |
Same Solution, Different Markets
6
Investment Thesis - Why DIRTT
Compelling
Customer Value
Proposition
Large
Underpenetrated
Market
Financial
Strength
DIRTT 2.0
2019 - current
- Higher quality, faster execution, better value
- Protected by 233 patents
- Proprietary product design and software
- Displacing $150B conventional construction market
- Shortage of jobsite labor driving shift to prefabricated construction
- Less than 1% penetrated currently
- $56M cash (a/o September 30, 2019), no debt
- Financial flexibility to execute strategic plan
- Cash flow positive business model can fund growth needs
- Founder-ledbusiness topped out at ~$274M in sales
- Professional management team brought in to scale the company
- Executing strategic plan to capitalize on value proposition and realize full market potential
- Optimized sales and marketing organization
- Disciplined,metrics-based operations
7
Customer Value Proposition
Higher
Quality
Superior customer satisfaction with 3D/VR experience prior to construction
✓Eliminates change orders
✓Maximizes client satisfaction at move-in
Modularity allows flexibility to change as needs evolve, maintaining client satisfaction with their space over time
Higher-quality materials
Faster
Execution
2 week manufacturing lead time
Speed and cleanliness of installation
Shorter construction cycle time
- Less reliance onon-site labor
- Typical DIRTT budget is 30% labor vs. 70% in conventional
Reduces time to occupancy
Better
Value
Day 1 construction costs often less than conventional construction
Less expensive than conventional over the life of the project
8
DIRTT Partner Locations
Each Partner is required to invest in:
- DIRTT Champion
- DIRTT Project Manager
- DIRTT Designer
- Proprietary ICE®Software Package
- DIRTT Experience Centre (DXC)
DIRTT's Approach to Market
DIRTT
DIRTT Partners Sell
with ICE Software
Design | Manage | Install | Execute On-site
DIRTT Sales | DIRTT Partners | GCs, Architects, | ||||
Reps | Designers | |||||
9
The Landscape
$150B* Market Opportunity
Taking less than 1% market share from conventional construction is $1.5B
$150B*
Traditional construction facing labor
shortages and cost increases
Percent of builders reporting labor challenges 2019Q3
93%89%
32
46High
Compelling Value Proposition
Higher Quality
Faster Execution
61
Concern
Moderate
DIRTT <1% penetration
43Concern
S U P P L YC O S T
Better Value
10 | Source: National Labor Database, Commercial Construction Index, Modular Building Institute, FMI, Pitchbook |
*company estimate | |
Transforming DIRTT
DIRTT 1.0 | The Right | The Right | The Right |
(2005-2018) | People | Plan | Execution |
DIRTT
2.0
We are transforming DIRTT from a small company with a brilliant idea to a company that we believe is capable of sustaining aggressive and profitable growth that will drive real and ongoing shareholder value.
11
Strategic Pillars
Near-Term Priorities
Continuous product and technology innovation
Operational Cost Efficiencies
Establish a marketing organization
and achieve sales excellence
Ongoing | 2019 - 2020 | 2019 - 2021 |
InnovationManufacturing Commercial
Excellence Execution
12
Innovation
September 2018
- Highly creative, groundbreaking
- Reactive, impulsivedecision-making process; no defined roadmap
- Shiny object syndrome
- No employee structure, random activities difficult to manage
- ICE architecture and product ownership through single individual
Future State
- Highly creative, groundbreaking
- Open forum with our clients and partners followed by R&D; defined strategic roadmap, vision supported by strategies
- Focused innovation for our core vertical markets
- Structured activities with scheduled milestones
- Architecture "council", multiple product owners
13
Manufacturing Excellence
September 2018
- No focus on safety; minimal tracking
- No deployment of lean manufacturing
- 1 manager formally trained in lean
- No metrics
- No dedicated resources for quality and continuous improvement
Future State
- Culture of safety
- Full deployment of lean manufacturing
- All senior operations leaders with formal lean training and experience
- Extensive use of metrics
- Dedicated focus on quality and continuous improvement
14
Commercial Execution
September 2018
-
All sales reps reporting directly to the
CEO - No strategic marketing capability
- Limited focus on strategic accounts, large project sales and execution capability
- No formally defined partner programs
Future State
- People and organizational optimization
- Sales excellence
- World-classstrategic marketing function
- Revamped partner experience
15
Philosophy on Innovation
In every area of our business we persevere beyond what our clients want to relentlessly
pursue a deeper understanding of what our clients need. We nurture insights from all
areas of our business to deliver sustainable innovations that address those needs.
Evolutionary | Revolutionary |
Built on a 15-year history and patent protected
16
Manufacturing Excellence
Metrics-driven continuous improvement culture
- Highly qualified, proactive Safety team
- Job hazard assessments and PPE standards
- Near Miss tracking and cause remediation
- ICE integration & completeness
- Control plans & standard work
- QA/QC monitoring and root cause remediation
- ICE Integration & completeness
- Optimized workflow from order entry to delivery
- Robust capacity plan, sufficient to meet demand
- Strategic sourcing utilizing long term agreements
- Material yield optimization
- Standard work with optimized product flow
- Cross-trainedagile work force
- Factory performance data management
Client Satisfaction
Drives Higher
Revenue
Lower
Costs Drive
Profitability
17
Commercial Execution
People and | World-Class | Sales | Redefined |
Organizational | Strategic | Excellence | Partner |
Optimization | Marketing | Experience | |
Function |
18
Financial Performance
Revenue (Millions)
$274.6$269.0
Adjusted EBITDA
$50.0
$42.9
18.0%
16.0%
$226.5
$201.3
$40.0
$30.0
$33.4
14.0%
12.0%
10.0%
2016 | 2017 | 2018 | TTM |
Revenue
- Implementation of sales and marketing strategy expected to drive future growth
$20.6
$20.0
$8.8
$10.0
$-
2016 | 2017 | 2018 | TTM | ||
Adj EBITDA (US$ Millions) | Adj EBITDA % | ||||
Adjusted EBITDA
- Operating expense discipline and higher revenues demonstrated the leverage in the business in 2018
8.0%
6.0%
4.0%
2.0%
0.0%
19
Financial Targets*
US$ Million
$600 $500
$400
$300
$200
$100 $0
Revenue | Adjusted EBITDA | |||
25% | ||||
20% | ||||
15% | ||||
10% | ||||
5% | ||||
0% | ||||
TTM Q4/18 - Q3/19 | FY 2023 | TTM Q4/18 - Q3/19 | FY 2023 | |
2023 Revenue | 2023 Adjusted EBITDA | |||
$450M - $550M | Margin 18% - 22% |
20*Reflects management targets and not forecasts of future performance
The Path to 2023 Target
100% | ||||
12% | Marginexpansion | |||
16% | 18%-22% | |||
80% | ||||
29% | Elimination of $5.5 mm of one time costs in | |||
2019 combined with leverage from G&A | ||||
28% | ||||
and T&D. Investments in S&M at same | 28%-26% | |||
60% | rate as a % of revenue growth | |||
Addition of approx. $2 mm fixed costs of | ||||
40% | Charlotte plant commencing 4Q 2020, | |||
offset by leverage on fixed costs of existing | ||||
59% | plant, and incremental labor savings. The | |||
58% | benefits of strategic sourcing are excluded | 54%-52% | ||
as the amounts are not quantifiable at this | ||||
20% | ||||
time. |
0%
2018 | Sept 2019 TTM | 2023 Target | ||||||
COGS excl. Depreciation & Amortization1 | Net Operating Costs | Adjusted EBITDA | FX | |||||
-20%
1See "Non-GAAP Financial Measures"
Investments in Sales and Marketing
Sales & Marketing Headcount vs % of Revenue
200
180
160
140
120
100
80
60
40
20
-
Dec-18 | Aug-19 | 2020 | 2021 | 2022 | 2023 | |
Headcount | Target S&M% of revenue | |||||
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
- Investment in S&M headcount with a1-year payback
- Include sales personnel, partner support, commercial operations and lead generation
- Results in an increase in S&M costs as a % of revenue for 2020 and 2021 as we build out the capabilities, skillsets and infrastructure
- As salesforce and partners become more effective in selling, we expect leverage to begin to take hold in 2022
- Pivot points exist in each year - if actions are not driving results as expected, we willre-evaluate approach and adjust accordingly
22
Capital Investments
$18 - $20 million Ongoing
Capital Expenditures
35%35%
12% 18%
Plant Equipment | GLC refresh |
Corporate | Software development |
Estimated major capital initiatives 2019-2021 (approx.) over and above ongoing capital expenditures:
Initiative | 2019 | 2020 | 2021 |
Primer line | 2.0 | ||
Charlotte plant | 3.2 | 15.3 | |
DXC buildout | 2.0 | 1.0 |
- Software development will vary year over year depending upon mix of maintenance and development activities
- New primer line for permanent solution to tile warping
- Charlotte plant commercial operation date January 2021 with initial deposits in 2019
- Increasing DXC footprint as part of GTM strategy (excl. refresh)
- No major projects currently planned for 2022 & 2023
23
Cashflow and Capital Allocation
We expect DIRTT to be a free cash flow generating business
- High conversion of Adjusted EBITDA to Cashflow from Ops(60-70%) with low capex requirements.
Current capital structure is intentionally conservative due to the transformational nature of the strategic plan
- $56 million cash (as of September 30, 2019), with no debt
- Upon realization of tangible financial results from the implementation of our plan, we willre-evaluate our capital structure and make appropriate recommendations to our board
- CAD$50 million (approx. USD$38M) undrawn, dual currency credit facility available
Maintaining a strong balance sheet necessary to support credibility with National Account level customers
24
Measuring Success
2020 | 2021 | Early 2022 | 2023 |
- Commercial organization in place - hiring complete for both sales and marketing
- CRM and costing tools fully implemented
- Conversion rates tracked at every stage of the funnel
- Secure at least 2 MOUs for National Accounts
- TRIF (injury rates) below BLS standard
- Reach continuous improvement
25in manufacturing operations
- Charlotte plant in full operation, achieved at the budgeted cost
- Conversion rates optimized, showing improvement at every stage of the funnel
- At least two large projects under contract
- Sales and marketing investments begin achieving1-year payback
- Full realization of organizational changes reflected in accelerated revenue growth; increased win rates in strategic projects (large and national) and healthcare
- $450M - $550M Revenue
- 18%-22%Adjusted EBITDA Margins
Key Takeaways
Compelling
Customer Value
Proposition
Large
Underpenetrated
Market
Financial
Strength
DIRTT 2.0
2019 - current
- Higher quality, faster execution, better value
- Protected by 233 patents
- Proprietary product design and software
- Displacing $150B conventional construction market
- Shortage of jobsite labor driving shift to prefabricated construction
- Less than 1% penetrated currently
- $56M cash (a/o September 30, 2019), no debt
- Financial flexibility to execute strategic plan
- Cash flow positive business model can fund growth needs
- Founder-ledbusiness topped out at ~$274M in sales
- Professional management team brought in to scale the company
- Executing strategic plan to capitalize on value proposition and realize full market potential
- Optimized sales and marketing organization
- Disciplined,metrics-based operations
26
Appendix
Sales Organization - target 2020
CEO
CCO
VP, Sales (1)
Regional | Director, Strategic | Strategic Projects | Leader, | Leader, Internal | Leader, Timber | Leader, Sales | |||||||
Strategy & Analytics | |||||||||||||
Directors (4) | Accounts (1) | Team (2) | Constructability (1) | Design (1) | Frame (1) | ||||||||
(1) | |||||||||||||
Sales Reps (70) | SA Reps (5) | Constructability (2) | Designers (3) | Timber Frame (4) | Sales Support (1) | |||||||
Business | Commercial | |
Development (4) | Business Analyst (1) | |
Segment Sales
Reps (9)
Filled position
Vacant or partially filled
28
Marketing Organization - target 2020
CEO
CCO
Director, Client | Director, Segment | |
Experience (1) | Market Strategy (1) | |
Client Experience
Leaders andHealthcare (1)
Teams (6)
Education (1)
Government (1)
Commercial (1)
Millwork (1)
Technology (2)
29
VP, Partner
Support (1)
Partner
Engagement (2)
Partner
Onboarding (2)
Partner
Development (8)
VP, Strategic
Marketing (1)
Brand (1)
Communication (2)
Marketing & Lead
Generation (4)
Graphics & Web
(5)
Partner Marketing
(2)
Event
Management (1)
Director,
Commercial
Operations (1)
CRM (1)
Reporting (1)
Lead Qualification & Distribution (1)
Filled position
Vacant or partially filled
Summary of Consolidated Financial Results
For the period ended September 30 | Three months | Nine months | ||||
($ thousands, except per share amounts) | 2019 | 2018 | % Change | 2019 | 2018 | % Change |
Revenue | 65,385 | 73,913 | (12) | 194,537 | 200,241 | (3) |
Gross profit
Gross profit margin
Adjusted Gross Profit1
Adjusted Gross Profit Margin1
Operating expenses2,3
Operating expenses %2,3
Operating income (loss)2,3
Adjusted EBITDA1
Adjusted EBITDA %1
Income tax expense
Net income (loss)2
Net income (loss) per share - basic and diluted2
24,934 | 30,085 | (17) | 72,959 | 79,390 | (8) |
38.1% | 40.7% | (6) | 37.5% | 39.6% | (5) |
27,309 | 32,507 | (16) | 80,073 | 86,586 | (8) |
41.8% | 44.0% | (5) | 41.2% | 43.2% | (5) |
17,596 | 30,437 | (42) | 65,625 | 74,700 | (12) |
26.9% | 41.2% | (35) | 33.7% | 37.3% | (10) |
7,338 | (352) | NA | 7,334 | 4,690 | 56 |
8,072 | 13,062 | (38) | 20,663 | 30,065 | (31) |
12.3% | 17.7% | (30) | 10.6% | 15.0% | (29) |
1,959 | 684 | 186 | 3,667 | 3,114 | 18 |
5,802 | (1,433) | NA | 3,148 | 2,407 | 31 |
0.07 | (0.02) | NA | 0.04 | 0.03 | 33 |
- See"Non-GAAP Financial Measures"
- Three month period ended September 30, 2018 included $2.0 million stock based compensation expense, $6.1 million impairment expense, and $2.2 million in reorganization expenses (2019 - $2.4 million stock based compensation recovery and no impairment or reorganization expenses)
- Nine month period ended September 30, 2018 included $3.2 million stock based compensation expense, $6.1 million impairment and $4.6 million in reorganization expenses (2019 - $2.4 million in stock based compensation expense, $2.6 million reorganization expense, and no impairment expense)
30
Additional Financial Highlights
($ thousands) | Sep 30, 2019 | Dec 31, 2018 |
Cash and cash equivalents | 56,642 | 53,412 |
Trade and other receivables, net | 27,532 | 43,873 |
Inventory | 18,996 | 18,650 |
Property, plant and equipment, net | 38,166 | 36,728 |
Capitalized software, net | 8,292 | 8,335 |
Operating lease right-of-use assets, net1 | 21,530 | - |
Accounts payable and other liabilities | 22,217 | 32,583 |
Other current liabilities2 | 4,393 | 5,523 |
Long-term debt3,4 | - | 5,625 |
Lease liabilities1,3 | 22,268 | - |
For the three month period ended | Sep 30, 2019 | Sep 30, 2018 |
($ thousands) | ||
Net cash flows provided by operating activities | 2,998 | 208 |
Capital expenditures | (5,512) | (2,945) |
- Operating leaseright-of-use asset and lease liabilities resulted from prospective adoption of a new accounting standard for operating leases effective January 1, 2019
- The liability forcash-settleable stock options was $0.1 million for Q3 2019
- Current andlong-term portions
- Repaid on January 31, 2019
31
Non-GAAP Financial Measures
The following tables present a reconciliation for the three and nine months ended September 30, 2019 and 2018 of our non-GAAP measures to the most directly comparable GAAP measures.
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2019 | 2018 | 2019 | 2018 | |
($ in thousands) | ($ in thousands) | |||
Net income (loss) for the period | $5,802 | $(1,433) | $3,148 | $2,407 |
Add back (deduct): | ||||
Interest Expense | 3 | 98 | 77 | 301 |
Interest Income | (228) | (101) | (320) | (327) |
Income Tax Expense | 1,959 | 684 | 3,667 | 3,114 |
Depreciation and Amortization | 2,925 | 3,544 | 9,260 | 10,342 |
EBITDA | $10,461 | $2,792 | $15,832 | $15,837 |
Stock-based Compensation Expense | ||||
(Recovery) | (2,389) | 2,037 | 2,403 | 3,172 |
Non-cash Foreign Exchange Loss | ||||
(Gain) on Debt Revaluation | - | (101) | (211) | 312 |
Impairment Expense | - | 6,098 | - | 6,098 |
Reorganization Expense | - | 2,236 | 2,639 | 4,646 |
Adjusted EBITDA | $8,072 | $13,062 | 20,663 | $30,065 |
Net Income Margin(1) | 8.9% | (1.9)% | 1.6% | 1.2% |
Adjusted EBITDA Margin | 12.3% | 17.7% | 10.6% | 15.0% |
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2019 | 2018 | 2019 | 2018 | |
($ in thousands) | ||||
Gross Profit | 24,934 | 30,085 | 72,959 | 79,390 |
Gross Profit Margin | 38.1% | 40.7% | 37.5% | 39.6% |
Add: Depreciation and Amortization | ||||
Expense | 2,375 | 2,422 | 7,114 | 7,196 |
Adjusted Gross Profit | 27,309 | 32,507 | 80,073 | 86,586 |
Adjusted Gross Profit Margin | 41.8% | 44.0% | 41.2% | 43.2% |
32
Thank You
DIRTT Environmental Solutions 7303 30thStreet SE
Calgary, Alberta T2C 1N6 ir@dirtt.com
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DIRTT Environmental Solutions Ltd. published this content on 13 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2020 20:52:05 UTC