Altus Group reports Q3 2023 financial results and quarterly dividend

Q3 2023 summary

Unless otherwise indicated, all amounts are in Canadian dollars and percentages are on an as reported basis in comparison to Q3 2022.

• Consolidated revenues were $185.2 million, up 4.2% (0.8% on a Constant Currency* basis)

• Profit was $0.9 million, compared to $6.8 million

• Earnings per share (“EPS”) were $0.02, basic and diluted, compared to $0.15 basic and diluted

• Consolidated Adjusted EBITDA* was $29.7 million, down 9.9% (13.8% on a Constant Currency basis)

• Net cash provided by operating activities was $36.0 million, up 49%, and Free Cash Flow* was $34.1 million, up 96.5%

• Adjusted EPS* was $0.33, compared to $0.42

• Analytics revenues were $95.3 million, up 8.8% (4.6% on a Constant Currency basis), of which Recurring Revenue* was $87.4 million, up 13.7% (9.2% on a Constant Currency basis), and Adjusted EBITDA was $23.3 million, up 11.6% (5.7% on a Constant Currency basis) driving an Adjusted EBITDA margin* of 24.5%, up 60 basis points

• Analytics New Bookings* were $22.2 million, down 17.3% (21.1% on a Constant Currency basis), of which Recurring New Bookings* were $13.9 million, down 20.7% (24.3% on a Constant Currency basis)

• At the end of Q3 2023, 72% of the Company’s total ARGUS Enterprise (“AE”) user base had been contracted on ARGUS Cloud (Cloud Adoption Rate*), compared to 55% at the end of Q3 2022

• Property Tax revenues were $60.8 million, up 0.1% (down 4.1% on a Constant Currency basis), and Adjusted EBITDA was $12.7 million, down 28.7% (31.9% on a Constant Currency basis)

• Appraisals and Development Advisory revenues were $29.3 million, down 0.8% (0.6% on a Constant Currency basis) and Adjusted EBITDA was $3.0 million, down 27.6% (27.4% on a Constant Currency basis)

• As at September 30 2023, Funded debt to EBITDA ratio as defined in the Company’s credit facility agreement was 2.08 times, and Net debt to Adjusted EBITDA leverage ratio* was 1.98 times

• The Company purchased 51,700 common shares in Q3 2023 for a total cash consideration of $2.5 million under the Normal Course Issuer Bid

• Subsequent to quarter end, the Company entered into definitive agreements to acquire the business of Forbury Property Valuations Solutions Limited (“Forbury”) and the commercial real estate valuation services business (“REVS”) of Situs Group, LLC (a SitusAMC company)