PLRB Pluribus Technologies Corp

First Quarter Highlighted by positive Adjusted EBITDA benefiting from 2023 restructuring

TORONTO, May 30, 2024 /CNW/ - Pluribus Technologies Corp. (TSXV: PLRB) ("Pluribus" or the "Company"), a growing acquiror of small, profitable technology companies, today announced its financial results for the first quarter ended March 31, 2024. The Company's consolidated financial statements and accompanying notes for the quarters ended March 31, 2024 and 2023 are available under Pluribus' profile on SEDAR+ (www.sedarplus.ca).

All dollar amounts are in thousands of Canadian dollars unless otherwise noted. Certain metrics, including Adjusted EBITDA, are non-IFRS measures (see Non-IFRS Measures below).

"We achieved positive Adjusted EBITDA in Q1 2024, driven by a perpetual license sale in the UK and the benefits from our 2023 cost restructuring," stated Richard Adair, CEO of Pluribus. "Our current priority is to continue the strategic review and explore ways to enhance the company's capital structure. The sale of HealthTech in May was a promising initial move."

Selected Financial and Business Highlights for the First Quarter

• On May 10, 2024, the Company closed the sale of substantially all of the assets, tangible and intangible, of its wholly-owned subsidiary, TeleMED Diagnostic Management Inc., and all of the issue and outstanding fully-diluted shares of its wholly-owned subsidiary, TDM Telehealth Technology Ltd. (together "HealthTech") (the "Sale Transaction"). The Sale Transaction closed on May 10, 2024 for an aggregate purchase price of $5,070, and certain proceeds were used to pay down Bank debt. The financial results of HealthTech are excluded from reported figures below, unless otherwise stated as discontinued operations.
• Revenue for the quarter increased by $810 or 9% from $8,729 in 2023 to $9,539 in 2024. The increase in revenue was primarily driven by eLearning ($1,120) due to a perpetual license sale at SkilSure ($1,109), offset by a decline in eCommerce revenue ($359).
• Adjusted EBITDA¹ for the quarter increased by $1,643, or 241% from $682 in 2023 to $2,325 in 2024 due to the increase in revenue and lower cost base following the restructuring undertaken by the Company in 2023.
• The Company incurred a net loss of $1,812 for the quarter ended March 31, 2024 compared to a net loss of $1,885 for the comparable period in 2023. This is primarily due to the increase in Adjusted EBITDA ($1,643) offset by the increase in acquisition costs ($585), the loss on revaluation of contingent consideration ($480), and the increase in income taxes ($362).
• Cash on hand at March 31, 2024 was $1,504 compared with $1,279 on December 31, 2023. The Company signed a forbearance agreement with National Bank in January 18, 2024. The agreement was subsequently amended in March 2024, April 2024 and May 2024.

Results of Operations

Outlook

The first quarter of 2024 saw the full impact of the 2023 restructuring completed to better align our cost structure to the Company's current revenue levels.

The Company's Special Committee continues its previously communicated strategic review to explore alternatives to optimize its capital structure including reviewing the remaining verticals to determine which are core and non-core based on their growth potential and looking at refinancing opportunities.

Management determined that the growth opportunities in the HealthTech vertical were limited without additional investment and deemed it to be non-core. Management was able to more than double EBITDA since the acquisition of HealthTech in December 2019 and was able to achieve an attractive return on invested capital. The capital tied up in HealthTech was better redeployed to reduce leverage on the balance sheet.

Conference Call Details

Pluribus' management team will host a conference call to discuss its fiscal 2024 first quarter financial results on Friday, May 31, 2024.

Date: Friday, May 31, 2024
Time: 8:30 am EDT

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3yEGtPJ to receive an instant automated call back.

Dial-In Numbers: (416) 764-8650 or (888) 664-6383
Webcast: Available on the Events & Presentations page of the Company's investor website
Replay: (416) 764-8677 or (888) 390-0541 (playback code: 880387 #) – available until midnight (EDT) on June 7, 2024

About Pluribus Technologies Corp.

Pluribus is a technology company that is a value-based acquirer and operator of small, profitable business-to-business technology companies in a range of verticals and industries. Pluribus provides its acquisitions access to experienced sales and marketing resources, strategic partnership opportunities, a diverse portfolio of customers in different geographical markets and enabling technologies to create new revenue streams and provide the opportunity for these companies to grow in their respective markets. When market conditions are conducive to raising capital at reasonable costs, Pluribus focuses on rapidly acquiring and integrating new acquisitions to accelerate growth. When the environment does not support this, Pluribus focuses on implementing strategies to maximize organic growth and increase cashflow from operations in its existing portfolio companies. For more information, please visit: pluribustechnologies.com

Non-IFRS Measures

The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA as a measure of operating performance. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income, restructuring and transition costs primarily related to acquisitions and other one-time non-recurring transactions.

Reconciliation of Non-IFRS Measures

The Company uses the non-IFRS measure Adjusted EBITDA to evaluate performance. The following table presents the reconciliation from net income (loss) to Adjusted EBITDA for the three months ended March 31, 2024.

Forward-Looking Information

Certain information in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information in this press release includes, but is not limited to, statements with respect to the business plans of the Company, including the successful completion of future acquisitions, management's expectation on the growth, profitability and performance of its current and future acquisitions, the Company's ability to continue acquiring business-to-business technology companies at reasonable prices, the Company's ability to grow its portfolio companies into significant organizations, the benefits from the sale of HealthTech and the Company's ability to achieve a positive transaction pursuant to its strategic review process. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or negatives of these terms and similar expressions.

Forward-looking statements are based on certain assumptions, including the Company's ability to complete acquisitions on favourable terms; the Company's ability to manage a complex portfolio of companies effectively; the Company's ability to scale its management team to support its growth; the Company's ability to raise sufficient financing to continue its acquisition strategy; the Company's ability to achieve positive results pursuant to its strategic review process. Other assumptions include industry trends, the availability of growth opportunities, and general business, economic, competitive, political, regulatory and social uncertainties will not prevent the Company from conducting its business. While the Company considers these assumptions to be reasonable based on information currently available, they are inherently subject to significant business, economic and competitive uncertainties and contingencies and they may prove to be incorrect. Forward-looking information speaks only to such assumptions as of the date of this release.

Forward-looking statements also necessarily involve known and unknown risks, including without limitation, risks associated with general economic conditions, including the COVID-19 pandemic, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments, the inability to access sufficient capital on favourable terms, the Company's limited operating history; ability to complete favourable acquisitions; the technology industry in Canada and internationally, income tax and regulatory matters, the ability of the Company to execute its business strategies, including the ability manage a complex portfolio of companies effectively, competition, currency and interest rate fluctuations, and other risks.

Readers are cautioned that the foregoing is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ from those anticipated. Forward-looking statements are not guarantees of future performance. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Contact:

Richard Adair
Chief Executive Officer
Pluribus Technologies Corp.
1 (800) 851-9383

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SOURCE Pluribus Technologies Corp.