AGI Announces Record Fourth Quarter & Annual Results Featuring Continued Margin Strength, Introduces Outlook for 2024 Adjusted EBITDA, and Declares First Quarter 2024 Dividends
Fourth Quarter 2023 Highlights
-
Revenue1 of
$379 million increased by 1% on a year-over-year (‘YOY’) basis -
Adjusted EBITDA2 of
$73 million increased by 43% on a YOY basis - Adjusted EBITDA margin %3 increased by roughly 570 basis points to 19.3% from 13.6% on a YOY basis
-
Net debt leverage ratio3 of 2.8x at
Dec 31, 2023 vs 3.7x atDec 31, 2022 or 3.2x atSept 30, 2023
Full Year 2023 Highlights
-
Revenue1 of
$1,527 million increased by 5% on a YOY basis -
Revenue generated by our International businesses now contribute over
$500 million or 34% of total revenue -
Adjusted EBITDA2 of
$294 million increased by 25% on a YOY basis - Adjusted EBITDA margin % 3 increased by roughly 320 basis points to 19.3% from 16.1% on a YOY basis
Outlook
-
Adjusted EBITDA guidance for 2024 of at least
$310 million 2 -
Order book4 up 25% YOY to
$747 million as ofDecember 31, 2023 , a record level for the Company- Significant strength in the International regions of our Commercial segment
- Given the project-based nature of our strengthening Commercial segment order book and the timing of these orders, we anticipate a gradual ramp-up of our 2024 results, gathering momentum as the year progresses
“With Adjusted EBITDA margins at their highest levels since the strategic initiative to enter Commercial and international businesses began about a decade ago, we are highly encouraged by the pace of progress taking hold across the organization,” commented
“The focus on balance sheet deleveraging continues to track towards our stated objectives,” added
___________________________________________ | ||
1 |
See “BASIS OF PRESENTATION”. |
|
2 |
Historical or forward-looking non-IFRS financial measure. See "Non-IFRS and Other Financial Measures". |
|
- Fourth quarter 2023 profit before income taxes of |
||
- Year ended |
||
3 |
Historical or forward-looking non-IFRS ratio. See "Non-IFRS and Other Financial Measures". |
|
4 |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
SUMMARY OF FOURTH QUARTER 2023 RESULTS
Revenue by Operating Segment |
Three-months ended |
|||
|
2023 |
2022 |
Change |
Change |
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
Revenue [1] [2] |
||||
Farm |
188,855 |
180,985 |
7,870 |
4% |
Commercial |
190,462 |
193,049 |
(2,587) |
(1%) |
Total |
379,317 |
374,034 |
5,283 |
1% |
Adjusted EBITDA by Operating Segment |
Three-months ended |
|||
|
2023 |
2022 |
Change |
Change |
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
Adjusted EBITDA [2] [3] |
||||
Farm |
46,694 |
32,482 |
14,212 |
44% |
Commercial |
35,870 |
30,658 |
5,212 |
17% |
Other [4] |
(9,488) |
(12,143) |
2,655 |
N/A |
Total |
73,076 |
50,997 |
22,079 |
43% |
Adjusted EBITDA Margin % by Operating Segment |
Three-months ended |
|||
|
2023 |
2022 |
Change |
Change |
% |
% |
basis points |
% |
|
Adjusted EBITDA Margin % [2] [3] |
||||
Farm |
24.7% |
17.9% |
678 bps |
38% |
Commercial |
18.8% |
15.9% |
295 bps |
19% |
Other [4] |
(2.5%) |
(3.2%) |
75 bps |
N/A |
Consolidated |
19.3% |
13.6% |
563 bps |
41% |
Revenue by Geography [1] [2] |
Three-months ended |
|||
[thousands of dollars except percentages] |
2023 |
2022 |
Change |
Change |
$ |
$ |
$ |
% |
|
|
76,678 |
87,725 |
(11,047) |
(13%) |
|
155,190 |
141,676 |
13,514 |
10% |
International |
147,449 |
144,633 |
2,816 |
2% |
Total Revenue |
379,317 |
374,034 |
5,283 |
1% |
[1] |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
|
[2] |
See “BASIS OF PRESENTATION”. |
|
[3] |
Non-IFRS financial measure or non-IFRS ratio. See "Non-IFRS and Other Financial Measures". |
|
[4] |
Included in Other is the corporate office, which is not a reportable segment, and which provides finance, treasury, legal, human resources and other administrative support to the segments and geographical regions, as applicable. The Adjusted EBITDA Margin % for Other is calculated based on total revenue since it does not generate revenue without the segments. |
Order book
The following table presents YOY changes in the Company’s order book[1] as at
|
As at |
|||
[thousands of dollars except percentages] |
2023 |
2022 |
Change |
Change |
$ |
$ |
$ |
% |
|
Order book |
747,330 |
596,956 |
150,374 |
25% |
[1] |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
Farm Segment
Farm segment revenue and Adjusted EBITDA grew by 4% and 44% YOY, respectively, in Q4. Revenue growth was primarily driven by strong demand in the U.S. market. Adjusted EBITDA margin % increased 678 bps to 24.7% YOY in Q4 benefiting from manufacturing efficiency initiatives, a revenue mix weighted towards higher margin portable grain handling equipment, and the impact of the Digital reorganization efforts completed throughout 2023. Looking ahead, the overall Farm order book continues to trend higher YOY. This was driven mostly by
Commercial Segment
Commercial segment revenue and Adjusted EBITDA decreased 1% and increased 17% YOY, respectively, in Q4. Strong revenue growth in the
SUMMARY OF FULL YEAR 2023 RESULTS
Revenue by Operating Segment |
Year ended |
|||
|
2023 |
2022 |
Change |
Change |
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
Revenue [1] [2] |
||||
Farm |
831,951 |
778,088 |
53,863 |
7% |
Commercial |
694,718 |
679,994 |
14,724 |
2% |
Total |
1,526,669 |
1,458,082 |
68,587 |
5% |
Adjusted EBITDA by Operating Segment |
Year ended |
|||
|
2023 |
2022 |
Change |
Change |
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
Adjusted EBITDA [2] [3] |
||||
Farm |
217,155 |
163,118 |
54,037 |
33% |
Commercial |
121,039 |
106,760 |
14,279 |
13% |
Other [4] |
(44,300) |
(35,195) |
(9,105) |
N/A |
Total |
293,894 |
234,683 |
59,211 |
25% |
Adjusted EBITDA Margin % by Operating Segment |
Year ended |
|||
|
2023 |
2022 |
Change |
Change |
% |
% |
basis points |
% |
|
Adjusted EBITDA Margin % [2] [3] |
||||
Farm |
26.1% |
21.0% |
514 bps |
25% |
Commercial |
17.4% |
15.7% |
172 bps |
11% |
Other [4] |
(2.9%) |
(2.4%) |
(49) bps |
N/A |
Consolidated |
19.3% |
16.1% |
316 bps |
20% |
Revenue by Geography [1] [2] |
Year ended |
|||
[thousands of dollars except percentages] |
2023 |
2022 |
Change |
Change |
$ |
$ |
$ |
% |
|
|
352,454 |
333,353 |
19,101 |
6% |
|
661,447 |
649,905 |
11,542 |
2% |
International |
512,768 |
474,824 |
37,944 |
8% |
Total Revenue |
1,526,669 |
1,458,082 |
68,587 |
5% |
[1] |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
|
[2] |
See “BASIS OF PRESENTATION”. |
|
[3] |
Non-IFRS financial measure or non-IFRS ratio. See "Non-IFRS and Other Financial Measures". |
|
[4] |
Included in Other is the corporate office, which is not a reportable segment, and which provides finance, treasury, legal, human resources and other administrative support to the segments and geographical regions, as applicable. The Adjusted EBITDA Margin % for Other is calculated based on total revenue since it does not generate revenue without the segments. |
First Quarter 2024 Dividend
AGI also announced the declaration of a cash dividend of
MD&A and Financial Statements
AGI's audited consolidated financial statements for the year ended
Conference Call
AGI management will hold a conference call on
AGI Company Profile
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in
Further information can be found in the disclosure documents filed by AGI with the securities regulatory authorities, available at www.sedarplus.ca and on AGI's website www.aggrowth.com.
BASIS OF PRESENTATION
On
NON-IFRS AND OTHER FINANCIAL MEASURES
This press release makes reference to certain specified financial measures, including non-IFRS financial measures, non-IFRS ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing our business performance and trends. These specified financial measures are not recognized measures under International Financial Reporting Standards ("IFRS"), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement our financial information reported under IFRS by providing further understanding of our results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
We use the following (i) non-IFRS financial measures: “adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”)” and "net debt"; (ii) non-IFRS ratios: “Adjusted EBITDA margin %” and “net debt leverage ratio”; and (iii) supplementary financial measures: “order book”, “revenue by operating segment” and “revenue by geography”; to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS financial measures, non-IFRS ratios and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure or ratio.
We use these specified financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These specified financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our IFRS results and, in the case of non-IFRS financial measures, the accompanying reconciliations to the most directly comparable IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business.
In this press release, we discuss the specified financial measures, including the reasons that we believe that these measures provide useful information regarding our financial condition, results of operations, cash flows and financial position, as applicable, and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures are contained in this press release.
The following is a list of non-IFRS financial measures, non-IFRS ratios and supplementary financial measures that are referenced throughout this press release:
“Adjusted EBITDA” is defined as profit (loss) before income taxes before finance costs, depreciation and amortization, gain or loss on foreign exchange, non-cash share -based compensation expenses, gain or loss on financial instruments, M&A recovery or expenses, transaction, transitional and other costs, net gain or loss on the sale of property, plant & equipment, net gain or loss on assets held for sale, net gain or loss on settlement of lease liability, equipment rework, remediation, accounts receivable reserve for the conflict between
“Adjusted EBITDA margin %” is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin % is a non-IFRS ratio because one of its components, Adjusted EBITDA, is a non-IFRS financial measure. Management believes Adjusted EBITDA margin % is a useful measure to assess the performance and cash flow of the Company.
“Order book” is defined as the total value of committed sales orders that have not yet been fulfilled that: (a) have a high certainty of being performed as a result of the existence of a purchase order, an executed contract or work order specifying job scope, value and timing; or (b) has been awarded to the Company or its divisions, as evidenced by an executed binding letter of intent or agreement, describing the general job scope, value and timing of such work, and where the finalization of a formal contract in respect of such work is reasonably assured. Order book is a supplementary financial measure. AGI previously used the term "backlogs" instead of "order book", however there has been no change to the definition or underlying calculation.
"Revenue by Operating Segment" and "Revenue by Geography": The revenue information presented under "Revenue by Operating Segment" and "Revenue by Geography" are supplementary financial measures used to present the Company's revenue by segment and geography.
“Net Debt Leverage Ratio” is a non-IFRS ratio and is defined as net debt divided by Adjusted EBITDA for the last twelve month ("LTM") period. Net debt leverage ratio is a non-IFRS ratio because its components, net debt and Adjusted EBITDA, are non-IFRS financial measures. Management believes net debt leverage ratio is a useful measure to assess AGI’s leverage position.
“Net Debt” is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is long-term debt. Net debt is defined as the sum of long-term debt, convertible unsecured subordinated debentures, senior unsecured subordinated debentures, and lease liabilities less cash and cash equivalents. Management believes that net debt is a useful measure to evaluate AGI's capital structure and to provide a measurement of AGI's total indebtedness. See "
Profit (loss) before income taxes and Adjusted EBITDA
The following table reconciles profit before income taxes to Adjusted EBITDA.
|
Three-months ended |
Year ended |
||
|
||||
[thousands of dollars] |
2023 |
2022 |
2023 |
2022 |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
10,529 |
(76,526) |
86,067 |
(45,313) |
Finance costs |
18,296 |
17,197 |
73,667 |
61,067 |
Depreciation and amortization |
16,242 |
19,024 |
65,316 |
76,945 |
Loss (gain) on foreign exchange [1] |
(4,690) |
(2,211) |
(7,571) |
8,941 |
Share-based compensation [2] |
2,796 |
4,910 |
12,159 |
15,620 |
Loss (gain) on financial instruments [3] |
1,117 |
(8,211) |
(5,369) |
(9,629) |
Mergers and acquisition expense (recovery) [4] |
— |
(25) |
50 |
(144) |
Transaction, transitional and other costs [5] |
10,975 |
15,395 |
27,124 |
44,301 |
Enterprise Resource Planning (“ERP”) system transformation costs [6] |
14,001 |
— |
14,001 |
— |
Net loss (gain) on disposal of property, plant and equipment [7] |
493 |
(12) |
768 |
340 |
Net gain on assets held for sale [8] |
(339) |
— |
(314) |
— |
Equipment rework [9] |
3,000 |
6,100 |
7,900 |
6,100 |
Remediation [9] |
600 |
— |
16,208 |
— |
Accounts receivable reserve for RUK |
(82) |
— |
1,651 |
— |
Fair value of inventory from acquisition [10] |
— |
— |
— |
609 |
Impairment charge [11] |
138 |
75,356 |
2,237 |
75,846 |
Adjusted EBITDA [12] |
73,076 |
50,997 |
293,894 |
234,683 |
[1] |
See “Note 25[e] – Finance expenses (income)” in our consolidated financial statements. |
|
[2] |
The Company’s share-based compensation expense pertains to our equity incentive award plan (“EIAP”) and directors’ deferred compensation plan (“DDCP”). See “Note 24 – Share-based compensation plans” in our consolidated financial statements. |
|
[3] |
See “Equity swap”. |
|
[4] |
Transaction costs (recoveries) associated with completed and ongoing mergers and acquisitions activities. |
|
[5] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in amounts due to vendors. |
|
[6] |
Expenses incurred in connection with a global multi-year ERP transformation project. |
|
[7] |
Includes loss (gain) on settlement of lease liabilities. See “Note 11 – Property, plant and equipment” in our consolidated financial statements. |
|
[8] |
See “Note 16 – Assets held for sale” in our consolidated financial statements. |
|
[9] |
See “Remediation costs and equipment rework”; includes legal fees associated with remediation settlement. |
|
[10] |
Non-cash expenses related to the sale of inventory that acquisition accounting required be recorded at a value higher than manufacturing cost. |
|
[11] |
Impairment charge related to property, plant, and equipment, right-of-use assets, goodwill, intangible assets and assets held for sale. See “Note 11 – Property, plant and equipment”, “Note 12 – Right-of-use assets”, “Note 13 – Goodwill”, “Note 14 – Intangible assets” and “Note 16 – Assets held for sale” in our consolidated financial statements. |
|
[12] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment
|
Three-months ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [14] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
39,188 |
28,271 |
(56,930) |
10,529 |
Finance costs |
— |
— |
18,296 |
18,296 |
Depreciation and amortization [1] |
6,946 |
7,972 |
1,324 |
16,242 |
Gain on foreign exchange [2] |
— |
— |
(4,690) |
(4,690) |
Share-based compensation [3] |
— |
— |
2,796 |
2,796 |
Loss on financial instruments [4] |
— |
— |
1,117 |
1,117 |
Transaction, transitional and other costs [6] |
— |
— |
10,975 |
10,975 |
ERP system transformation costs [7] |
— |
— |
14,001 |
14,001 |
Net (gain) loss on disposal of property, plant and equipment [1][8] |
560 |
(90) |
23 |
493 |
Net gain on assets held for sale [9] |
— |
(339) |
— |
(339) |
Equipment rework [10] |
— |
— |
3,000 |
3,000 |
Remediation [10] |
— |
— |
600 |
600 |
Accounts receivable reserve for RUK |
— |
(82) |
— |
(82) |
Impairment charge [12] |
— |
138 |
— |
138 |
Adjusted EBITDA [13] |
46,694 |
35,870 |
(9,488) |
73,076 |
|
Three-months ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [14] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
(64,116) |
21,194 |
(33,604) |
(76,526) |
Finance costs |
— |
— |
17,197 |
17,197 |
Depreciation and amortization [1] |
10,580 |
6,469 |
1,975 |
19,024 |
Gain on foreign exchange [2] |
— |
— |
(2,211) |
(2,211) |
Share-based compensation [3] |
— |
— |
4,910 |
4,910 |
Gain on financial instruments [4] |
— |
— |
(8,211) |
(8,211) |
Mergers and acquisition expense (recovery) [5] |
— |
— |
(25) |
(25) |
Transaction, transitional and other costs [6] |
13,669 |
— |
1,726 |
15,395 |
Net (gain) loss on disposal of property, plant and equipment [1][8] |
(13) |
1 |
— |
(12) |
Equipment rework [10] |
— |
— |
6,100 |
6,100 |
Impairment charge [12] |
72,362 |
2,994 |
— |
75,356 |
Adjusted EBITDA [13] |
32,482 |
30,658 |
(12,143) |
50,997 |
|
Year ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [14] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
187,477 |
89,336 |
(190,746) |
86,067 |
Finance costs |
— |
— |
73,667 |
73,667 |
Depreciation and amortization [1] |
26,867 |
30,219 |
8,230 |
65,316 |
Gain on foreign exchange [2] |
— |
— |
(7,571) |
(7,571) |
Share-based compensation [3] |
— |
— |
12,159 |
12,159 |
Gain on financial instruments [4] |
— |
— |
(5,369) |
(5,369) |
Mergers and acquisition expense [5] |
— |
— |
50 |
50 |
Transaction, transitional and other costs [6] |
— |
— |
27,124 |
27,124 |
ERP system transformation costs [7] |
— |
— |
14,001 |
14,001 |
Net loss on disposal of property, plant and equipment [1][8] |
712 |
9 |
47 |
768 |
Net gain on assets held for sale [9] |
— |
(314) |
— |
(314) |
Equipment rework [10] |
— |
— |
7,900 |
7,900 |
Remediation [10] |
— |
— |
16,208 |
16,208 |
Accounts receivable reserve for RUK |
— |
1,651 |
— |
1,651 |
Impairment charge [12] |
2,099 |
138 |
— |
2,237 |
Adjusted EBITDA [13] |
217,155 |
121,039 |
(44,300) |
293,894 |
|
Year ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [14] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
36,676 |
72,716 |
(154,705) |
(45,313) |
Finance costs |
— |
— |
61,067 |
61,067 |
Depreciation and amortization [1] |
40,548 |
29,494 |
6,903 |
76,945 |
Loss on foreign exchange [2] |
— |
— |
8,941 |
8,941 |
Share-based compensation [3] |
— |
— |
15,620 |
15,620 |
Gain on financial instruments [4] |
— |
— |
(9,629) |
(9,629) |
Mergers and acquisition expense [5] |
— |
— |
(144) |
(144) |
Transaction, transitional and other costs [6] |
13,669 |
— |
30,632 |
44,301 |
Net (gain) loss on disposal of property, plant and equipment [1][8] |
(160) |
480 |
20 |
340 |
Equipment rework [10] |
— |
— |
6,100 |
6,100 |
Fair value of inventory from acquisition [11] |
— |
609 |
— |
609 |
Impairment charge [12] |
72,385 |
3,461 |
— |
75,846 |
Adjusted EBITDA [13] |
163,118 |
106,760 |
(35,195) |
234,683 |
[1] |
Allocated based on the segment of the underlying asset’s cash generating unit (“CGU”). |
|
[2] |
See “Note 25[e] – Finance expenses (income)” in our consolidated financial statements. |
|
[3] |
The Company’s share-based compensation expense pertains to our EIAP and DDCP. See “Note 24 – Share-based compensation plans” in our consolidated financial statements. |
|
[4] |
See “Equity swap”. |
|
[5] |
Transaction costs (recoveries) associated with completed and ongoing mergers and acquisitions activities. |
|
[6] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in amounts due to vendors. |
|
[7] |
Expenses incurred in connection with a global multi-year ERP transformation project. |
|
[8] |
Includes loss (gain) on settlement of lease liabilities. See “Note 11 – Property, plant and equipment” in our consolidated financial statements. |
|
[9] |
See “Note 16 – Assets held for sale” in our consolidated financial statements. |
|
[10] |
See “Remediation costs and equipment rework”; includes legal fees associated with remediation settlement. |
|
[11] |
Non-cash expenses related to the sale of inventory that acquisition accounting required be recorded at a value higher than manufacturing cost. |
|
[12] |
Impairment charge related to property, plant, and equipment, right-of-use assets, goodwill, intangible assets and assets held for sale. See “Note 11 – Property, plant and equipment”, “Note 12 – Right-of-use assets”, “Note 13 – Goodwill”, “Note 14 – Intangible assets” and “Note 16 – Assets held for sale” in our consolidated financial statements. |
|
[13] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
|
[14] |
Included in Other is the corporate office, which is not a reportable segment, and which provides finance, treasury, legal, human resources and other administrative support to the segments. |
Profit (loss) before income taxes and Adjusted EBITDA for the LTM Periods Ending
|
Last twelve months |
|
[thousands of dollars] |
2023 |
2022 |
$ |
$ |
|
Profit (loss) before income taxes |
(988) |
9,512 |
Finance costs |
72,568 |
55,818 |
Depreciation and amortization |
68,098 |
74,295 |
Loss (gain) on foreign exchange [1] |
(5,092) |
11,363 |
Share-based compensation [2] |
14,273 |
13,263 |
Gain on financial instruments [3] |
(14,697) |
(3,347) |
Mergers and acquisition expense [4] |
25 |
843 |
Transaction, transitional and other costs [5] |
31,544 |
33,671 |
Change in estimate on variable consideration [6] |
— |
11,400 |
Net loss on disposal of property, plant and equipment [7] |
288 |
264 |
Equipment rework [8] |
11,000 |
10,000 |
Remediation [8] |
15,608 |
8,600 |
Accounts receivable reserve for RUK |
1,733 |
— |
Fair value of inventory from acquisition [9] |
— |
609 |
Impairment charge [10] |
77,455 |
2,048 |
Adjusted EBITDA [11] |
271,815 |
228,339 |
[1] |
See “Note 10[e] - Other expenses (income)” in our Q3 2023 consolidated financial statements. |
|
[2] |
The Company’s share-based compensation expense pertains to our EIAP and DDCP. See “Note 9 – Share-based compensation plans” in our Q3 2023 consolidated financial statements. |
|
[3] |
See “Equity swap” in our MD&A and Q3 2023 consolidated financial statements. |
|
[4] |
Transaction costs associated with completed and ongoing mergers and acquisitions activities. |
|
[5] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in contingent consideration and amounts due to vendors. |
|
[6] |
The result of a change in management estimate on variable considerations for a one-time revenue concessions related to previous revenue contracts. |
|
[7] |
Includes loss (gain) on settlement of lease liabilities and includes assets held for sale. See “Note 5 – Assets held for sale” in our Q3 2023 consolidated financial statements. |
|
[8] |
See “Remediation costs and equipment rework” in our Q3 2023 consolidated financial statements and 2022 Statements. |
|
[9] |
Non-cash expenses related to the sale of inventory that acquisition accounting required be recorded at a value higher than manufacturing cost. |
|
[10] |
Impairment charge related to property, plant, and equipment, intangible assets, and assets held for sale. See “Note 5 – Assets held for sale” in our Q3 2023 consolidated financial statements. |
|
[11] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
Net Debt
Q4/22 |
Q3/23 |
Q4/23 |
|
[thousands of dollars] |
|
|
|
|
|||
Long Term Debt |
440,938 |
481,310 |
420,457 |
Convertible Unsecured Subordinated Debentures |
183,481 |
188,403 |
190,064 |
Senior Unsecured Subordinated Debentures |
252,750 |
254,242 |
254,756 |
Leases |
39,147 |
42,344 |
41,671 |
Less: Cash & Cash Equivalents |
59,644 |
90,352 |
88,042 |
Net Debt |
856,672 |
875,947 |
818,906 |
FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements and information [collectively, "forward-looking information"] within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words “anticipate”, “estimate”, “believe”, “continue”, “could”, “expects”, “intend”, "trend", “plans”, “will”, “may” or similar expressions suggesting future conditions or events or the negative of these terms are generally intended to identify forward-looking information. Forward-looking information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this press release may contain forward-looking information attributed to third party industry sources. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. In particular, the forward-looking information in this press release includes information relating to: our Adjusted EBITDA guidance for 2024; the implication that our record order book as of
Such forward-looking information reflects our current beliefs and is based on information currently available to us, including certain key expectations and assumptions concerning: anticipated crop yields and production in our market areas; the financial and operating attributes of acquired businesses and the anticipated future performance thereof; the value of acquired businesses and assets and the liabilities assumed (and indemnities provided) by AGI in connection therewith; anticipated financial performance; future debt levels; business prospects and strategies, including the success of our operational excellence initiatives; product and input pricing; the scope, nature, timing and cost of re-supplying certain equipment and re-completing certain work that has previously been supplied or completed pursuant to warranty obligations or otherwise; regulatory developments; tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; currency exchange rates, inflation rates and interest rates; the cost of materials, labour and services and the impact of inflation rates and/or supply chain disruptions and/or labour activity thereon; the impact of competition; the general stability of the economic and regulatory environment in which the Company operates; the timely receipt of any required regulatory and third party approvals; the ability of the Company to obtain and retain qualified staff and services in a timely and cost efficient manner; the amount and timing of the dividends that we expect to pay; the ability of the Company to obtain financing on acceptable terms; the regulatory framework in the jurisdictions in which the Company operates; the ability of the Company to successfully market its products and services; and that a pandemic or other public health emergency will not have a material impact on our business, operations, and financial results going forward. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information. These risks and uncertainties include but are not limited to the following: general economic and business conditions and changes in international, national and local macroeconomic and business conditions, as well as sociopolitical conditions in certain local or regional markets, including as a result of conflicts in the
FINANCIAL OUTLOOK
Also included in this press release is an estimate of AGI’s 2024 Adjusted EBITDA, which is based on, among other things, the various assumptions disclosed in this press release including under "Forward-Looking Information" and including our assumptions regarding the Adjusted EBITDA contribution that AGI anticipates receiving from revenue growth in 2024 in part as a result of the 25% YOY increase in AGI's order book at
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Investor Relations
1-437-335-1630
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