Vancouver, BC – Tribe Property Technologies (TSXV: TRBE) (“Tribe” or the “Company”) a leading provider of technology-enabled property management solutions, today announced its financial results for the third quarter of 2021.
Quarterly Business Highlights
- Reported record revenue of $4.09 million, a 259% increase over revenue in third quarter 2020;
- Reported record gross profit2 of $2.00 million, a 364% increase over gross profit2 in third quarter 2020);
- Completed the national amalgamation of Gateway Property Management (“Gateway”);
- Launched our enterprise software nationally as “Tribe Home”;
- Announced and closed the acquisition of assets from Powder Highway Management and subsequent to quarter-end, announced and closed the acquisition of assets from NAI Okanagan further expanding the Company’s geographic footprint in BC;
- Launched our revenue-generating strategic Digital Partnership Program; announcing the Pensio Global partnership and subsequent to quarter-end also the Eddy Solutions and FreshPrep partnerships;
- Structured an M&A Integration Team to expedite the full integration and digitization of acquired businesses; and
- Strengthened our executive team with the addition of our Chief Technology Officer, Dan Feeny.
Third Quarter Fiscal 2021 Summary
Financial information is reported in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”). Tribe achieved revenue growth of 259% in the third quarter of 2021 over the same period in the prior year driven by acquisitions and organic growth. Revenue was $4,085,215 representing an increase from $1,139,065 in the third quarter of 2020. Gross profit2 increased in both dollar terms and in percentage terms. Tribe recorded a net loss of $1,759,265 in the third quarter of 2021 which reflects the additional costs associated with being a public company and the scaling of corporate infrastructure to support further acquisitions and the costs associated with the amalgamation of Gateway and Tribe. Adjusted EBITDA1, which management believes is a better proxy for the Company’s cash flows, was an outflow of $1,114,766.
“Tribe has continued to see substantial revenue growth for the third quarter in a row with progress across all of our M&A activities, digital partnerships and organic growth. Revenues increased by 259% compared to the same period last year. We are experiencing strong growth in gross margin on a per-home basis as we continue to digitize our acquired customers and roll-out our Tribe Home platform to more communities.
Our digital approach to the traditional property management industry continues to be embraced by condo and rental communities alike with a very healthy organic lead pipeline. The constant increase in our geographic footprint allows our services to be available to a bigger audience nationally,” stated Joseph Nakhla, Chief Executive Officer of Tribe. “Our team has built a healthy funnel of potential acquisition targets and we are pleased with our integration process and speed, with the purchase and integration of a condo management portfolio in BC’s Okanagan during Q3.”
“This quarter, we formally launched our Digital Partnership Program offering a range of carefully curated services through our Tribe Home platform, that support and simplify residential community living throughout the life-cycle of a community,” added Mr. Nakhla.
Three Month Comparative Results
The Company reported revenue of $4,085,215, up 259% over the same period in the prior year of $1,139,065. The increase in revenue was primarily due to revenue generated via the integration of Gateway. The Company had a net loss of $1,759,265 for the three months ended September 30, 2021, compared to a net loss of $268,118 in the same period of 2020.
Gross profit2 in the third quarter of 2021 was $1,996,714 (48.9%), which was 364% higher than the $429,988 (37.7%) gross profit2 in the same period in the prior year. The increase in gross profit2 was a result of the addition of service contracts associated with acquisitions and organic growth, and the increase in gross profit percentage2 was driven by economies of scale and digitization of a larger national footprint.
Adjusted EBITDA1 was as follows:
|Three months ended
September 30, 2021
|Three months ended
September 30, 2020
|Net loss||$ (1,759,265)||$ (268,118)|
|Add: Depreciation and amortization||311,286||97,380|
|Add: Stock-based compensation||169,519||–|
|Add: Interest expense||172,753||32,992|
|Add: Income tax expense||899||–|
|Adjusted EBITDA1||$ (1,114,766)||$ (137,386)|
Financial Statements and Management’s Discussion & Analysis
Please see the consolidated financial statements and related Management’s Discussion & Analysis (“MD&A”) for more details. The unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2021 and related MD&A have been reviewed and approved by Tribe’s Audit Committee and Board of Directors. Tribe recognizes that the majority of its investors are now accessing corporate and financial information either through pushed news services, directly from www.tribetech.com or SEDAR. Thus, Tribe has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at www.tribetech.com.
The following and preceding discussion of financial results includes reference to gross profit, gross profit percentage and Adjusted EBITDA, which are all non-IFRS financial measures. The measure of gross profit2 and gross profit percentage2 is provided as management believes this is a good indicator in evaluating the operating performance of the Company. Adjusted EBITDA1 is provided as a proxy for the cash earnings from the operations of the business as operating income (loss) for the Company includes non-cash amortization and depreciation expense and stock-based compensation.
The Company will hold a webcast to discuss its performance with the investment community at 2:00 p.m. PT on November 23, 2021.
Audio Only Dial-In
Toll Free Dial-In Number: +1 (877) 701-0981
International Dial-In Number: +1 (873) 415-0204
Conference ID: 4386224
About Tribe Property Technologies
Tribe is a property technology company that is digitizing the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe’s integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers.
Tribe’s three revenue pillars are made up of software and service (recurring licensing and management fees), transactional (rent or condo fees, banking services, lease-ups) and digital services and partnership (smart building products, financial and insurance service) revenue.
Tribe seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Tribe’s platform decreases customer acquisition costs, increases retention and allows for the addition of value-added products and services through the platform. Visit tribetech.com for more information.
ON BEHALF OF THE BOARD
Chief Executive Officer
Tribe Property Technologies Inc.
Chief Executive Officer
1155 West Pender Street, Suite 419 Vancouver, British Columbia
Corporate + Media
VP Communications and Marketing Tribe Property Technologies
1 Non-IFRS measure that does not have a standardized meaning and may not be comparable to a similar measure disclosed by other issuers. Adjusted EBITDA is also not a measure recognized in accordance with IFRS and does not have a prescribed or standardized meaning by IFRS. The Company defines Adjusted EBITDA as net income or loss excluding depreciation and amortization, stock-based compensation, interest expense, income tax expense, and other expenses. It should be noted that Adjusted EBITDA is not defined under IFRS and may not be comparable to similar measures used by other entities. The Company believes Adjusted EBITDA is a useful measure as it provides important and relevant information to management about the operating and financial performance of the Company. Adjusted EBITDA also enables management to assess its ability to generate operating cash flow to fund future working capital needs, and to support future growth. Excluding these items does not imply that they are non-recurring or not useful to investors. Investors should be cautioned that Adjusted EBITDA attributable to shareholders should not be construed as an alternative to net income (loss) or cash flows as determined under IFRS.
2 Non-IFRS measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross profit and gross profit percentage do not have a standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other issuers. The Company defines gross profit as revenue less cost of software and services and software licensing fees, and gross profit percentage as gross profit calculated as a percentage of revenue. Gross profit and gross profit percentage should not be construed as an alternative for revenue or net loss in accordance with IFRS. The Company believes that gross profit and gross profit percentage are meaningful metrics in assessing the Company’s financial performance and operational efficiency.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws regarding the Company and its business. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. Forward-looking statements or information in this news release may relate to statements with respect to the aims and goals of the Company; financial projections; growth plans including future prospective consolidation in the property management sector; future acquisitions by the Company; beliefs of the Company with respect to the independent owner-investors market; prospective benefits of the Company’s platform; and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. The Company does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.