Steady year-over-year recurring revenue growth and margin expansion at Analytics; Free cash flow generation begins to inflect.
Altus Group reports Q3 2023 financial results and quarterly dividend
Altus Group Limited (ʺAltus” or “the Company”) (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), announced today its financial and operating results for the third quarter ended September 30th, 2023 and the approval by its Board of Directors of the payment of a cash dividend of $0.15 per common share for the fourth quarter ending December 31, 2023.
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)
Key contact
Camilla Bartosiewicz
Chief Communications Officer
Key contact
Camilla Bartosiewicz
Chief Communications Officer
About Altus Group
Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services.
Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, proprietors, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle.
Altus Group is a global company headquartered in Toronto with approximately 3,000 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit altusgroup.com.