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Lumine Group Inc

Lumine Group Inc. Announces Results for the Three Months Ended March 31, 2025

TORONTO , May 1, 2025 /CNW/ - Lumine Group Inc. ("Lumine Group" or "the Company") (TSXV: LMN) announces financial results for the three months ended March 31, 2025. All amounts referred to in this press release are in US dollars unless otherwise stated.

The following press release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025, and management's discussion and analysis ("MD&A") for the three months ended March 31, 2025, which can be found on SEDAR+ at www.sedarplus.ca. Additional information about Lumine Group is also available on SEDAR+ and on Lumine Group's website www.luminegroup.com.

Q1 2025 Headlines:

  • Revenue grew 27% to $178.7 million compared to $141.1 million in the same quarter prior year (including -4% organic growth after adjusting for foreign exchange impacts).
  • The Company generated operating income of $59.5 million during the quarter, a 34% increase from $44.5 million in the same quarter prior year.
  • The Company generated net income of $20.8 million during the quarter, from net loss of $304.3 million in the same quarter prior year.
  • Cash flows from operations ("CFO") increased $5.1 million to $40.1 million compared to $34.9 million in Q1 2024, representing an increase of 15%.
  • Free cash flow available to shareholders ("FCFA2S") increased $6.2 million to $35.0 million compared to $28.8 million in Q1 2024, representing an increase of 22%.

Total revenue for the three months ended March 31, 2025 was $178.7 million, an increase of 27%, or $37.6 million, compared to $141.1 million for the comparable period in 2024. The increase for the three months compared to the same period in the prior year is attributable to revenues from new acquisitions. The Company experienced organic growth of -5% for the three months ended March 31, 2025 or -4% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each business in the financial period following acquisition, compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by the Company. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Operating income for the three months ended March 31, 2025 was $59.5 million, an increase of 34%, or $15.0 million, compared to $44.5 million for the same period in 2024. The increase is primarily attributable to growth from acquisitions. Operating income is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. See "Non-IFRS Measures".

Net income for the three months ended March 31, 2025 was $20.8 million compared to net loss of $304.3 million for the same period in 2024. The increase in net income is primarily attributable to growth from acquisitions and the Mandatory Conversion of Preferred and Special Securities on March 25, 2024 such that no further preferred and special securities expense was booked in the current quarter.

For the three months ended March 31, 2025, CFO increased $5.1 million to $40.1 million compared to $34.9 million for the same period in 2024 representing an increase of 15%. The change is primarily attributable to the higher operating income partly offset by changes in non-cash operating assets and liabilities exclusive of effects of business combinations.

For the three months ended March 31, 2025, FCFA2S increased $6.2 million to $35.0 million compared to $28.8 million for the same period in 2024 representing an increase of 22%. The change is mainly driven by higher CFO compared to the same periods in 2024. FCFA2S is a non-IFRS Measure. See "Non-IFRS Measures".

Non-IFRS Measures

Operating income (loss) refers to income (loss) before income taxes, amortization of intangible assets, redeemable preferred and special share expense, and finance and other expenses (income). We believe that operating income is useful supplemental information as it provides an indication of the profitability of the Company related to its core operations. Operating income (loss) is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income (loss) should not be construed as an alternative to net income (loss).

The following table reconciles operating income to net income:

(Unaudited)

Three months ended

March 31,


2025

2024

Net income (loss)

20.8

(304.3)

Adjusted for:



Amortization of intangible assets

26.0

22.8

Redeemable preferred and special securities expense

-

317.4

Finance and other expense (income)

5.1

4.3

Income tax expense (recovery)

7.6

4.3

Operating income (loss)

59.5

44.5

Free cash flow available to shareholders ''FCFA2S'' refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on bank debt, transaction costs on bank debt, repayments of lease obligations, Interest, dividends and other proceeds received and property and equipment purchased. The Company believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Lumine Group does not make any acquisitions, or investments, and does not repay any debts. While the Company could use the FCFA2S to pay dividends or repurchase shares, the Company's objective is to invest all of its FCFA2S in acquisitions which meet the Company's hurdle rate.

FCFA2S is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

The following table reconciles FCFA2S to net cash flows from operating activities:

(Unaudited) 

 Three months ended March 31,


2025

2024

Net cash flows from operating activities:

40.1

34.9

Adjusted for:



Interest paid on lease obligations

(0.1)

(0.2)

Interest paid on other facilities

(3.8)

(2.5)

Credit facility transaction costs

(0.0)

(1.7)

Payment of lease obligations

(1.6)

(1.6)

Interest, dividends and other proceeds received

0.7

0.1

Property and equipment purchased

(0.3)

(0.4)

Free cash flow available to shareholders

35.0

28.8






Forward Looking Statements

Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Lumine Group or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Lumine Group assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

About Lumine Group Inc.

Lumine Group acquires, strengthens, and grows, vertical market software businesses in the communications and media industry. Learn more at www.luminegroup.com. 

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.

Lumine Group Inc.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of USD.  Due to rounding, numbers presented may not foot.)

March 31, 2025

December 31, 2024




Assets






Current assets:



Cash

$                   252,096

$                  210,983

Accounts receivable, net

164,954

158,048

Unbilled revenue

41,637

35,982

Inventories

517

693

Other assets

55,247

47,183


514,451

452,889




Non-current assets:



Property and equipment

6,895

7,457

Right of use assets

5,928

6,949

Deferred income taxes

11,236

9,536

Other assets

12,112

12,467

Intangible assets and goodwill

774,530

797,888


810,701

834,297




Total assets

$               1,325,152

$               1,287,186




Liabilities and Equity






Current liabilities:



Accounts payable and accrued liabilities

$                   104,387

$                  107,861

Due to related parties, net

3,764

2,972

Current portion of bank debt

3,512

3,190

Deferred revenue

105,422

88,442

Provisions

16

156

Acquisition holdback payables

19

17

Lease obligations

3,464

4,249

Income taxes payable

14,920

10,278


235,504

217,165




Non-current liabilities:



Deferred income taxes

102,145

107,044

Bank debt

275,605

275,443

Lease obligations

3,262

3,621

Other liabilities

5,003

5,191


386,015

391,299




Total liabilities

621,519

608,464

3



Equity:



Capital stock

490,669

490,669

Contributed surplus

185,142

185,142

Accumulated other comprehensive income (loss)

(9,480)

(13,612)

Retained earnings (deficit)

37,302

16,523


703,633

678,722




Subsequent events






Total liabilities and equity

$          1,325,152

$               1,287,186

Lumine Group Inc.
Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of USD, except per share amounts. Due to rounding, numbers presented may not foot.)

Three months ended March 31,




2025

2024






Revenue





License



$         12,327

$         11,720

Professional services



31,277

24,933

Hardware and other



9,070

2,417

Maintenance and other recurring



126,018

102,029




178,692

141,099

Expenses





Staff



83,904

73,028

Hardware



4,659

1,520

Third party license, maintenance and professional services



11,203

8,539

Occupancy



996

896

Travel, telecommunications, supplies, software and equipment



9,022

6,757

Professional fees



3,840

2,832

Other, net



3,295

946

Depreciation



2,270

2,115

Amortization of intangible assets



26,014

22,821




145,203

119,454






Redeemable Preferred and Special Securities expense



-

317,362

Finance and other expenses (income)



5,134

4,272




5,134

321,634






Income (loss) before income taxes



28,355

(299,989)






Current income tax expense (recovery)



14,570

8,346

Deferred income tax expense (recovery)



(6,994)

(3,998)

Income tax expense (recovery)



7,576

4,348






Net income (loss)



$        20,779

$     (304,337)






Weighted average shares outstanding:





Basic



256,620,388

86,111,920

Diluted



256,620,388

253,336,756






Earnings (loss) per share:





Basic and diluted



$            0.08

$           (3.53)












Lumine Group Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In thousands of USD. Due to rounding, numbers presented may not foot.)

Three months ended March 31,


2025

2024




Net income (loss)


$    20,779

$        (304,337)





Items that are or may be reclassified subsequently to net income (loss):








Foreign currency translation differences from foreign operations and other


4,132

(3,625)

Other comprehensive (loss) income for the period, net of income


4,132

(3,625)

Total comprehensive income (loss) for the period


$            24,911

$        (307,962)





Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD.  Due to rounding, numbers presented may not foot.)

Three months ended March 31, 2025







Capital stock

Contributed
surplus

Accumulated other
comprehensive
(loss) income

Retained
earnings
(deficit)

Total equity







Balance at January 1, 2025

$     490,669

$                185,142

$         (13,612)

$          16,523

$         678,722







Total comprehensive income (loss) for the period:






Net income (loss)

-

-

-

20,779

20,779







Other comprehensive income (loss):






Foreign currency translation differences from foreign operations and other

-

-

4,132

-

4,132

Total other comprehensive income (loss) for the period

-

-

4,132

-

4,132







Total comprehensive income (loss) for the period

-

-

4,132

20,779

24,911







Balance at March 31, 2025

$   490,669

$            185,142

$        (9,480)

$         37,302

$      703,633












Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD.  Due to rounding, numbers presented may not foot.)





Three months ended March 31, 2024








Capital stock

Contributed
surplus

Accumulated other
comprehensive
(loss) income

Retained earnings
(deficit)

Total equity







Balance at January 1, 2024

$                -

$     (1,015,661)

$           (6,296)

$   (2,820,478)

$      (3,842,435)







Total comprehensive income (loss) for the period:






Net income (loss)

-

-

-

(304,337)

(304,337)







Other comprehensive income (loss):






Foreign currency translation differences from foreign operations and other

-

-

(3,625)

-

(3,625)







Total other comprehensive income (loss) for the period

-

-

(3,625)

-

(3,625)







Total comprehensive income (loss) for the period

-

-

(3,625)

(304,337)

(307,962)







Mandatory Conversion of Special and Preferred Shares

403,301

1,200,803

-

3,095,910

4,700,014

Settlement of Preferred and Special Share Dividends in Subordinate Voting Shares

87,368

-

-

-

87,368







Balance at March 31, 2024

$     490,669

$                185,142

$           (9,921)

$         (28,905)

$         636,985













Lumine Group Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of USD.  Due to rounding, numbers presented may not foot.)

Three months ended March 31,





2025

2024






Cash flows from (used in) operating activities:





Net income (loss)



$      20,779

$  (304,337)

Adjustments for:





Depreciation



2,310

2,115

Amortization of intangible assets



26,014

22,821

Contingent consideration adjustments



(113)

43

Preferred and Special Securities expense (income)



-

317,362

Finance and other expenses (income)



5,828

4,339

Income tax expense (recovery)



7,576

4,348

Change in non-cash operating assets and liabilities exclusive of effects of business combinations



(17,514)

(8,125)

Income taxes (paid) received



(4,809)

(3,637)

Net cash flows from (used in) operating activities



40,071

34,928






Cash flows from (used in) financing activities:





Interest paid on lease obligations



(105)

(154)

Interest paid on bank debt



(3,813)

(2,472)

Cash transferred from (to) Parent



100

(2,107)

Proceeds from issuance of bank debt



-

90,000

Repayments of bank debt



(243)

(244)

Transaction costs on bank debt



(19)

(1,655)

Payments of lease obligations



(1,583)

(1,566)

Net cash flows from (used in) in financing activities



(5,663)

81,802






Cash flows from (used in) investing activities:





Post-acquisition settlement payments, net of receipts



(937)

(685)

Interest, dividends and other proceeds received



694

67

Property and equipment purchased



(254)

(361)

Other investing activities



4,337

6

Net cash flows from (used in) investing activities



3,840

(972)











Effect of foreign currency on cash and cash equivalents



2,865

(2,479)

Increase (decrease) in cash



41,113

113,280






Cash, beginning of period



210,983

146,509


Cash, end of period



$    252,096

$        259,789














SOURCE Lumine Group Inc