Altus Group reports third quarter 2021 financial results

Q3 2021 summary

• Consolidated revenues were $151.8 million, up 12.5% (15.5% on a constant currency basis).

• Consolidated profit from continuing operations, in accordance with IFRS, was $(0.3) million, down from $9.3 million.

• Consolidated earnings per share from continuing operations, in accordance with IFRS, was $(0.01) per share basic and diluted, compared to $0.23 per share basic and $0.22 per share diluted.

• Consolidated Adjusted EBITDA was $24.4 million, up 1.5% (5.0% on a constant currency basis).

• Adjusted EPS was $0.39 down 2.5% from $0.40.

• Altus Analytics revenues were $65.1 million, up 32.4% (38.5% on a constant currency basis), of which Over Time revenues were $55.1 million, up 33.2% (38.2% on a constant currency basis), and Adjusted EBITDA was $11.7 million, up 22.3% (29.2% on a constant currency basis).

• Altus Analytics Bookings totaled $20.5 million, up 81.6% (88.7% on a constant currency basis), of which organic growth in Bookings was 70.0% (77.0% on a constant currency basis).

• CRE Consulting revenues were $86.8 million, up 1.1% (2.3% on a constant currency basis) and Adjusted EBITDA was $22.5 million, up 1.4% (2.3% on a constant currency basis) reflecting revenue variability at its Property Tax business.

• Subsequent to quarter end on October 4, Altus completed a $172.5 million equity financing, including the issuance of approximately 2.8 million shares priced at $62.00 per common share.

• Subsequent to quarter end on November 4, Altus further amended its bank credit facilities to increase borrowing capacity to $400 million, with certain provisions to further increase the limit to $450 million.

• Subsequent to quarter end on November 11, Altus announced the strategic acquisition of Scryer, Inc. (dba Reonomy) (“Reonomy”) for US$201.5 million (approximately C$249.5 million) (on a cash-free/debt-free basis) funded by cash on hand and borrowings under its credit facilities, subject to adjustments. The acquisition will strengthen the Company’s CRE data and analytics capabilities and strategically position Altus for accelerated transformative innovation in AI predictive data analytics.

• Full year 2021 consolidated revenue guidance increased to $621 – $626 million, while Adjusted EBITDA guidance was updated to $105 – $110 million.

• At the end of the quarter Bank debt was $246.9 million (representing a funded debt to EBITDA leverage ratio of 2.05 times) and cash and cash equivalents was $66.4 million. Factoring in the acquisition of Reonomy, funded debt to EBITDA leverage is expected to increase to approximately 3.0x.