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 second quarter of 2021.
Quarterly Business Highlights
- Reported record revenue of $3.97 million, a 244% increase over revenue in second quarter 2020
- Reported record gross profit2 of $1.98 million, a 274% increase over gross profit2 in second quarter 2020
- Made significant progress in the integration of Gateway Property Management (“Gateway”)
- Built the team and tools to underpin Tribe’s future acquisition strategyFirst 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 244% in the second quarter of 2021 over the same period in the prior year driven by the acquisition of Gateway which expanded the Company’s geographical footprint in the condo management services sector to the provinces of Alberta and Ontario, as well as significantly increased the scale of Tribe’s institutional rental management business. Revenue was $3,970,816 representing an increase from $1,155,121 in the second quarter of 2020. Gross profit2 increased in both dollar terms and in percentage terms. Tribe recorded a net loss of $1,644,529 in the second 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 a loss of $981,282.
“We saw another quarter of substantial revenue growth and great progress in our business. Revenues increased by 244% compared to the same period last year. This was driven by our Gateway acquisition which expanded our market penetration into more homes and communities. This quarter, we focused on the integration of the Gateway acquisition which I am pleased to say went very smoothly. We also embarked on a significant rebranding of both Gateway and our platform under the Tribe umbrella to support brand awareness and our holistic tech and service offering. The alignment of our internal teams is a key factor in our success in simplifying community living and providing management services with heart,” stated Joseph Nakhla, Chief Executive Officer of Tribe.
“As COVID-19 restrictions begin to loosen in many jurisdictions, we are beginning to see increased activity in our organic business development programs as well as an uptick in our strategic marketplace offerings. Our team has built a healthy funnel of potential acquisition targets and we continue to progress discussions with potential targets.”
“In Q2, we began making investments which we expect will unlock long term future growth and value for Tribe and our shareholders. During the quarter we not only completed the rebranding of the business we acquired from Gateway, we also codified our acquisition and integration processes into a playbook that we can leverage for further acquisitions. We have invested in an internal acquisitions team and have built the tools to complete further “tuck-in” and larger acquisitions. We have also scaled our Product and IT teams to facilitate the expeditious roll-out of our technology solutions into the properties we currently manage and anticipate managing,” added Mr. Nakhla.
Three Month Comparative Results
The Company reported revenue of $3,970,816, up 244% over the same period in the prior year of $1,155,121. The increase in revenue was primarily due to revenue generated via the integration of Gateway. The Company had a net loss of $1,644,529 for the three months ended June 30, 2021, compared to a net loss of $958,117 in the same period of 2020.
Gross profit2 in the second quarter of 2021 was $1,981,414 (49.9%), which was 274% higher than the $529,846 (45.9%) 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 the Gateway acquisition, and the increase in gross profit percentage2 was driven by economies of scale from a larger property management services business.
Adjusted EBITDA1 was as follows:
Three months ended
June 30, 2021
Three months ended
June 30, 2020
Net loss $ (1,644,529) $ (958,117) Add: Depreciation and amortization 300,581 295,494 Add: Stock-based compensation 164,090 646,481 Add: Interest expense 174,488 63,437 Add: Income tax expense 22,065 – Add: Other 2,023 1,400 Adjusted EBITDA1 $ (981,282) $ 48,695
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 six months ended June 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 which are classified as other operating expenses.
The Company will hold a webcast to discuss its performance with the investment community at 2:00 p.m. PT on August 30, 2021.
Audio Only Dial-In
Toll Free Dial-In Number: +1 (877) 701-0981
International Dial-In Number: +1 (873) 415-0204
Conference ID: 4298231
About Tribe Property Technologies
Tribe is a property technology company that is disrupting 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 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
For more information, please contact:
Jim Defer, CPA, CA, CBV
Chief Financial Officer
Tribe Property Technologies Inc.
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, which may include, but are not limited to, statements with respect to the aims and goals of the Company; financial projections; growth plans including future prospective consolidation in the rental management sector; future acquisitions by the Company; beliefs of the Company with respect to the independent owner-investors market; and prospective benefits of the Company’s platform. 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. These forward-looking statements or information may relate to proposed financing activity, proposed acquisitions, proposed success of the Company’s platform, regulatory or government requirements or approvals, the reliability of third-party information 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.
This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Company has not registered and will not register the securities under the U.S. Securities Act. The Company does not intend to engage in a public offering of their securities in the United States.