Fiscal Year 2020
Revenue increased 10% year-over-year to $405.1 millionNet income from continuing operations increased to $7.8 millionAdjusted EBITDA increased 49% year-over-year to $54.1 millionStrong net cash flow from operating activities of $51.7 million
Q4 Fiscal 2020Revenue increased 14.7% year-over-year to $100.9 millionNet loss from continuing operations decreased to $3.8 millionAdjusted EBITDA increased 83% to $13.5 million
WASHINGTON, Sept. 24, 2020 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”), a leading global provider of outsourced CX solutions, today announced financial results for the fourth quarter and fiscal year ended June 30, 2020.“Fiscal year 2020 was a milestone year for ibex–delivering record revenues surpassing $400 million, growing net income from continuing operations and increasing Adjusted EBITDA to over $50 million,” commented Bob Dechant, chief executive officer of ibex. “We continue to be focused on helping the world’s leading brands connect with their customers in unique and innovative ways, with particular focus on technology-led digital solutions. We also won important new logos with new economy and blue chip clients, and reported 100% client retention. Based on our expected revenue growth and robust pipeline, we are confident in our ability to accelerate additional customer wins, expand geographically and deliver solid cash flow in 2021.”Fiscal Year 2020 Financial Highlights:RevenueRevenue increased 10% to $405.1 million, compared to $368.4 million in the prior year.
Net Income / (Loss) From Continuing OperationsNet income from continuing operations increased to $7.8 million, compared to a net loss from continuing operations of $4.5 million in the prior year.Net income / (loss) from continuing operations margin increased to 1.9%, compared to (1.2)% in the prior year.Non-GAAP adjusted net income from continuing operations increased to $15.6 million, compared to $1.8 million in the prior year.
Adjusted EBITDANon-GAAP adjusted EBITDA from continuing operations increased to $54.1 million, compared to $36.3 million in the prior year.Non-GAAP adjusted EBITDA from continuing operations margin increased to 13.4%, compared to 9.9% in the prior year.Earnings Per ShareIFRS fully diluted earnings per share was $0.00 in fiscal years 2020 and 2019.*Non-GAAP pro forma adjusted earnings per share increased to $0.84, compared to $0.10 in the prior year.Cash Flow, Balance Sheet, and Capital ExpendituresCash flow from operations increased to $51.7 million, compared to $2.2 million in the prior year.Non-GAAP free cash flow increased to $25.6 million, compared to an outflow of $2.5 million in the prior year.Non-GAAP net debt decreased to $84.1 million, compared to $109.4 million in the prior year.Capital expenditures were $16.9 million, or 4.2% of revenue, compared to $9.7 million, or 2.6% of prior year revenue.Fourth Quarter 2020 Financial Highlights:RevenueRevenue of $100.9 million was minimally impacted by COVID-19, and increased 14.7% compared to the prior year quarter.
Net Income / (Loss) From Continuing OperationsNet loss from continuing operations decreased to $3.8 million, compared to a net loss from continuing operations of $4.6 million in the prior year quarter.Net loss from continuing operations margin decreased to (3.8)%, compared to (5.3)% in the prior year quarter.Non-GAAP adjusted net income from continuing operations increased to $2.6 million, compared to a non-GAAP adjusted net loss from continuing operations of $1.4 million in the prior year quarter.
Adjusted EBITDANon-GAAP adjusted EBITDA from continuing operations increased to $13.5 million, compared to $7.4 million in the prior year quarter.Non-GAAP adjusted EBITDA from continuing operations margin increased to 13.4%, compared to 8.4% in the prior year quarter.Earnings Per ShareIFRS fully diluted earnings per share was $0.00 in the fourth quarter of fiscal years 2020 and 2019.*Non-GAAP pro forma adjusted earnings per share increased to $0.14, compared to ($0.07) in the prior year quarter.* IFRS fully diluted earnings per share does not reflect the recapitalization that occurred in connection with ibex’s initial public offering.Fiscal Year 2020 Business Highlights:Added 24 new customer logosTop three client concentration decreased to 43.7% from 50.6% in the prior yearLaunched the Wave X Purpose Built Technology Suite enabling highly customized CX solutionsDigital business increased to 30% of our overall revenue to $119.6 millionNew Economy revenue increased by 35% compared to prior yearNon-voice revenue increased by 42% compared to prior yearIncreased our nearshore and offshore footprint by opening three new sites and adding 1,730 workstations in the Philippines and 843 in nearshore sites, boosting our non-US capacity by 35% over prior yearExpanded our digital marketing and on-line customer acquisition solutions by adding the Healthcare, Financial Services and Utility industries to our portfolio2021 Business OutlookIBEX Limited expects full year 2021 revenue of $431 million to $435 million and Adjusted EBITDA from continuing operations of $59.5 million to $61 million.Conference Call and Webcast InformationAn audio replay of the call will also be available to investors beginning at approximately 6:30 p.m. Eastern Time on September 24, 2020, until 7:30 p.m. Eastern Time on October 1, by dialing (855) 859-2056 for the U.S. or Canada, or for international callers, (404) 537-3406 and entering passcode 5273769. In addition, an archived webcast will be available on the Investors section of ibex’s website at: https://investors.ibex.co/.Financial InformationWhile the financial figures included in this press release have been computed in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to interim periods for the fourth quarter and applicable to financial statements for the fiscal year, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements.” The financial information in this press release has not been audited. Results for the fourth quarter of fiscal year 2020 and 2019 were calculated based on the difference between our unaudited results for fiscal year 2020 and 2019, respectively, and our previously-reported results for the nine months ended March 31, 2020 and 2019, respectively. Our independent registered public accounting firm, BDO LLP, has not audited, reviewed, compiled, or performed any procedures with respect to our results for the fourth quarter of fiscal year 2020 or 2019.Non-GAAP Financial MeasuresWe provide non-GAAP financial measures in addition to reported IFRS results prepared in accordance with IFRS. Management believes these measures help illustrate underlying trends in ibex’s business and uses the non-GAAP financial measures to establish budgets and operational goals, for managing ibex’s business and evaluating its performance. We anticipate that we will continue to report both IFRS and certain non-GAAP financial measures in our financial results. Because ibex’s non-GAAP financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-GAAP measures reported by other companies within ibex’s industry. Consequently, our non-GAAP financial measures should not be evaluated in isolation or replace comparable IFRS measures, but, rather, should be considered together with our unaudited consolidated statements of financial position, unaudited consolidated statements of profit or loss and other comprehensive income, and unaudited consolidated statements of cash flows presented herein and prepared in accordance with IFRS issued by IASB.In this earnings release, we are introducing “adjusted net income / (loss) from continuing operations,” which we define as net income / (loss) from continuing operations before the effect of the following items: non-recurring expenses (including litigation and settlement expenses, costs related to COVID-19, and expenses related to our initial public offering), impairment, other income, fair value adjustment related to the Amazon warrant, share-based payments, and foreign exchange gains or losses. We believe these items are not reflective of our long-term performance. We use adjusted net income / (loss) from continuing operations internally to understand what we believe to be the recurring nature of our net income / (loss) from continuing operations and as a basis to calculate a pro forma adjusted earnings per share now that our initial public offering has been consummated. We also believe that adjusted net income / (loss) from continuing operations is widely used by investors, securities analysts and other interested parties as a supplemental measure of profitability.ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA from continuing operations to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, fair value adjustments, share-based compensation expense, and impairment of assets. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.About ibexibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.Forward Looking StatementsIn addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: developments relating to COVID-19; the Frontier restructuring and its proceedings under Chapter 11 of the United States Bankruptcy Code; our ability to attract new business and retain key clients; our ability to enter into multi-year contracts with our clients at appropriate rates; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities; our ability to operate as an integrated company under the IBEX brand; our ability to manage portions of our business that have long sales cycles and long implementation cycles that require significant resources and working capital; our ability to manage our international operations, particularly in Pakistan and the Philippines and increasingly in Jamaica and Nicaragua; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security; our ability to manage the inelasticity of our labor costs relative to short-term movements in client demand; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands; our ability to maintain and enhance our reputation and brand; and other factors discussed under the heading “Risk Factors” in our final prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 10, 2020, our annual report on Form 20-F to be filed with the SEC and any other risk factors we include in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.Media Contact: Rosemary Hanratty, Senior Director of Marketing, ibex, 412.539.7099, rosemary.hanratty@ibex.coIR Contact: Brinlea Johnson, The Blueshirt Group, 415.269.2645, brinlea@blueshirtgroup.com
IBEX Limited
Unaudited Consolidated Statements of Financial Position
IBEX Limited
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income
IBEX Limited
Unaudited Consolidated Statements of Cash Flows
IBEX Limited
Unaudited Supplemental Non-GAAP Information
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