TORONTO, ON–(Marketwired – August 29, 2016) – Distinct Infrastructure Group Inc. (“Distinct” or the “Company”) (TSX VENTURE: DUG) today released its financial results for the three and six months ended June 30, 2016. For the three-month period ended June 30, 2016, the Company reported record revenues of $15.5 million, an increase of $7.0 million or 82.3% as compared to the three months ended May 31, 2015. For the six-month period ended June 30, 2016, the Company reported record first-half revenues of $26.3 million, an increase of $11.6 million or 79.1% as compared to the six months ended May 31, 2015.
“The Company continues to experience exceptional growth as evidenced by its record revenues for the first half of 2016,” said Joe Lanni, Co-Chief Executive Officer of the Company. “It is a testament to the abilities of management that the Company has been able to achieve the record revenues given the significant investment that it has made in its people, equipment and training. Having made the investment in the hiring and training of 100 additional employees in the first six months of 2016, the Company a solid foundation to continue its growth that it has experienced to date for the remainder of 2016 and through 2017 which will permit management to maximize operational efficiencies.”
Further commenting on the positive financial results, Alex Agius, Co-Chief Executive Officer of the Company, stated, “The success that the Company has achieved to date is evidence of the Company’s ability to manage its organic growth in its core business without sacrificing the quality of work that our customers have come to expect from us. We will continue to execute on our business strategy to grow organically while evaluating potential opportunities, both domestic and international, which will enhance the Company’s offerings while expanding its customer base.”
Additional highlights:
- EBITDA of $1.6 million during the second quarter of 2016 as compared to $1.5 million in the second quarter of 2015, a 10.2% increase. The Company also reported first half EBITDA of $2.6 million as compared to $2.2 million in the first half of 2015, a 21.1% increase.
- The Company continues to experience strong organic growth in the Ontario market driven by increasing demand from new and existing customers. Specifically, the Company’s telecommunication infrastructure business continues to experience increased demand for projects from one of the Company’s largest customers. As well, start-up revenues from the iVac segment continue to grow as that business shows robust internal and external growth.
| Consolidated Financial Highlights | ||||
| June 30, 2016 | December 31, 2015 | |||
| Total current assets | 43,561,938 | 35,908,724 | ||
| Total non-current assets | 19,690,208 | 14,376,669 | ||
| Total Assets | 63,252,146 | 50,285,393 | ||
| Current liabilities | 19,300,891 | 8,719,675 | ||
| Long-term debt, debentures & finance lease obligations | 27,534,452 | 25,050,270 | ||
| Total Liabilities | 46,835,343 | 33,769,945 | ||
| Total Shareholders’ Equity | 16,416,803 | 16,515,448 | ||
| Total Liabilities & Shareholders’ Equity | 63,252,146 | 50,285,393 | ||
| For the three months ended | For the six months ended | |||||||||
| June 30, 2016 | May 31, 2015 | June 30, 2016 | May 31, 2015 | |||||||
| Revenue | 15,514,275 | 8,507,528 | 26,273,730 | 14,672,081 | ||||||
| Expenses | ||||||||||
| Direct costs | 11,042,213 | 5,821,589 | 18,710,891 | 10,122,969 | ||||||
| Selling, general and administrative | 2,863,319 | 1,226,539 | 4,924,635 | 2,371,894 | ||||||
| Depreciation | 731,985 | 474,920 | 1,264,264 | 602,632 | ||||||
| Total expenses | 14,637,517 | 7,523,048 | 24,899,790 | 13,097,495 | ||||||
| Earnings from operations | 876,758 | 984,480 | 1,373,940 | 1,574,586 | ||||||
| Other expenses | ||||||||||
| Finance expense | 866,014 | 147,926 | 1,633,921 | 340,114 | ||||||
| 866,014 | 147,926 | 1,633,921 | 340,114 | |||||||
| (Loss) / Income before taxes | 10,744 | 836,554 | (259,981 | ) | 1,234,472 | |||||
| Income taxes | – | 232,667 | – | 424,667 | ||||||
| Net and comprehensive (loss) / income | 10,744 | 603,887 | (259,981 | ) | 809,805 | |||||
| (Loss) / earnings per share | ||||||||||
| Basic | 0.000 | 0.004 | (0.001 | ) | 0.005 | |||||
| Diluted | 0.000 | 0.004 | (0.001 | ) | 0.005 | |||||
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the three and six months ended June 30, 2016 are available on SEDAR at www.sedar.com as well as DIG’s investor relations website at www.diginc.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
For further information please contact:
Manny Bettencourt
Chief Financial Officer
Email: manny.bettencourt@diginc.ca
Distinct Infrastructure Group Inc.
Email: public.relations@diginc.ca