VANCOUVER, BC, Nov. 29, 2022 /CNW/ - Tribe Property Technologies Inc. (TSXV: TRBE) (OTCQB: TRPTF) ("Tribe" or the "Company") a leading provider of technology-enabled property management solutions, today announced its financial results for the third quarter and for the nine months ended September 30, 2022.
"Tribe again achieved strong revenue in the third quarter on a per-home basis as we continue to digitize our acquired customers and roll-out our Tribe Home platform to more communities," stated Joseph Nakhla, Chief Executive Officer of Tribe. "I am proud that Tribe has experienced 10.9% year-over-year quarterly revenue growth, while making progress across our M&A activities, digital partnerships and organic growth."
Consolidated Financial Highlights:
Quarterly revenue increased 10.9% over the same quarter last year to $4,529,310.
Year-to-date revenue increased 10.3% compared to the first nine months of 2021 to $13,064,345.
Additional Quarterly Highlights:
We commenced integration of Southview, which closed on the June 30, 2022;
We also completed the acquisition of a condominium management portfolio from a privately held property management firm based in Vancouver, British Columbia;
We recruited and appointed Drew Keddy as Chief Operating Officer; and
We entered into a strategic partnership with Hytec Water Management Ltd. to better equip residential communities against pin-hole leaks and water corrosion of a building's overall plumbing system.
"During Q3, we announced the appointment of Drew Keddy into the new role of Chief Operating Officer, with a focus on organic growth opportunities, operational efficiencies, and accelerating the Company's acquisition strategies", highlighted Joseph Nakhla. "We also ramped up for the Q4 launch of Tribe Home – Market, our curated digital marketplace for homeowners and residents, to further improve residents' living experiences while saving them money through group-buying power and producing additional revenue for Tribe. "
"Subsequent to quarter end, Tribe was humbled and honored to be recognized for our rapid revenue growth, making both the 2022 Deloitte Technology Fast 50™ and Fast 500™ awards programs. We strongly acknowledge that this recognizes our team's dedication to simplifying multi-family community living with our comprehensive suite of products and services for building and managing residential communities."
"Having spent most of 2022 developing and launching a digital marketplace that can be tailored to the location, type, and age of a building, we are pleased with the quality and speed of the rollout of our Digital Partnership program within our communities", added Joseph Nakhla.
Financial Statements and Management's Discussion and Analysis
Please see the Company's consolidated financial statements and related Management's Discussion and Analysis ("MD&A") for more details. The consolidated financial statements for the three and nine months ended September 30, 2022, and related MD&A have been reviewed and approved by Tribe's Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR and is also available on the Company's website. Financial information is reported in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS").
Sept. 30, 2022
Sept. 30, 2021
Sept. 30, 2022
Sept. 30, 2021
Tribe achieved revenue growth of 10.9 % in the third quarter of 2022 over the same period in the prior year, driven primarily by organic growth and tuck in acquisitions. Delays in the occupancy of new buildings are ongoing due to supply chain issues, municipal government bureaucracy, and labour issues related to the COVID-19 pandemic, all led to lower-than-expected revenue growth.
Revenue for the three months ended September 30, 2022 increased 10.9% compared to the third quarter of 2021. Revenue for the nine months ended September 30, 2022 increased 10.3% compared to the first nine months of 2021.
Profitability was negatively impacted this quarter by:
Delays in new building completion due to supply-chain and development logistics challenges affecting higher margin software and monthly recurring revenue;
Revenue growth in the minimal margin property maintenance division of the Company;
Increase in headcount due new community onboarding, integration and optimization in product development related to the recent launch of digital marketplace; and
Salary adjustments and higher than average labour turnover given COVID and post-COVID market pressure.
"Our immediate focus is on margin improvements" added Joseph Nakhla. "We continue to make progress to implementing cost efficiencies and driving post-acquisition synergies ".
Reconciliation of Net Loss to EBITDA
Sept. 30, 2022
Sept. 30, 2021
Sept. 30, 2022
Sept. 30, 2021
Depreciation and amortization
Fair value loss (gain) on investment
Expenses associated with the public listing
Income tax expense
Foreign exchange loss (gain)
The Company continues to invest in building its technology platforms and headcount to prepare for anticipated organic and acquired growth. Please refer to the Company Management's Discussion and Analysis for the three and nine months ended September 30, 2022 filed on SEDAR.
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 results with the investment community at 2:00 pm PDT (5:00 pm EDT) on Tuesday November 29, 2022.
Joining the Conference Call:
Participant Toll Free-North America: 1-800-319-4610
International Toll: 1-604-638-5340
Webcast Link: https://www.gowebcasting.com/12380
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
1606-1166 Alberni Street
Vancouver, British Columbia
1 - Adjusted EBITDA is a 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 - Gross profit and gross profit percentage are non-IFRS measures that do 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.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements which constitute forward-looking statements or information under applicable Canadian securities laws, including statements relating to the Company's goals and strategy. Such forward-looking statements are subject to numerous known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, which could cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. These risks and uncertainties include changes to applicable laws or the regulatory sphere in which the Company operates, general economic and capital market conditions, and stock market volatility. Although the Company believes that the forward-looking statements in this news release are reasonable, they are based on factors and assumptions, based on currently available information, concerning future events, which may prove to be inaccurate. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to plans, operations, results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether because of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE Tribe Property Technologies Inc.
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