Altus Group reports Q4 and fiscal 2023 financial results; announces quarterly dividend payment
Altus Group Limited (ʺAltus” or “the Company”) (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), announced today its financial and operating results for the fourth quarter and year ended December 31st, 2023, the approval by its Board of Directors of the payment of a cash dividend of $0.15 per common share for the first quarter ending March 31st, 2024, and its financial outlook for fiscal 2024.
Unless otherwise indicated, all amounts are in Canadian dollars and percentages are on an as reported basis in comparison to the same period in 2022. “CC” in the tables indicates “Constant Currency”.
Q4 2023 Summary
Consolidated revenues were $191.6 million, up 4.3% (2.8% on a Constant Currency* basis).
Profit (loss) improved to $(0.1) million from $(8.8) million.
Earnings per share (“EPS”) were $(0.00) basic and diluted, compared to $(0.20) basic and diluted.
Consolidated Adjusted EBITDA* was $34.2 million, down 2.2% (3.4% on a Constant Currency basis)
Net cash provided by operating activities was $44.7 million, up 62.7%, and Free Cash Flow* was a record $40.1 million, up 109.3%.
Adjusted EPS* improved to $0.46 from $0.44.
Analytics revenues were $103.2 million, up 7.4% (6.1% on a Constant Currency basis), of which Recurring Revenue* was $93.0 million, up 8.4% (7.0% on a Constant Currency basis). Adjusted EBITDA was $28.1 million, up 9.0% (7.9% on a Constant Currency basis), driving an Adjusted EBITDA margin* of 27.3%, up 40 basis points (40 basis points on a Constant Currency basis).
Analytics New Bookings* were $26.3 million, down 23.2% (23.4% on a Constant Currency basis), of which Recurring New Bookings* were $18.2 million, down 12.5% (12.6% on a Constant Currency basis).
At the end of Q4 2023, 74% of the Company’s total ARGUS Enterprise (“AE”) user base had been contracted on ARGUS Cloud (Cloud Adoption Rate*), compared to 64% at the end of Q4 2022.
Property Tax revenues were $60.5 million, up 8.4% (up 5.9% on a Constant Currency basis), and Adjusted EBITDA was $13.3 million, down 7.6% (10.5% on a Constant Currency basis).
Appraisals and Development Advisory revenues were $28.0 million, down 12.5% (12.4% on a Constant Currency basis) and Adjusted EBITDA was $2.3 million, down 59.6% (59.6% on a Constant Currency basis).
As at December 31st 2023, Funded debt to EBITDA ratio as defined in the Company’s credit facility agreement was 2.06 times, and Net debt to Adjusted EBITDA leverage ratio* was 1.98 times.
The Company purchased 53,700 shares in Q4 2023 for $2.1 million under its Normal Course Issuer Bid (“NCIB”).
2023 Summary
Consolidated revenues were $772.8 million, up 5.1% (2.2% on a Constant Currency* basis).
Profit (loss) was $10.2 million, compared to a loss of $(0.9) million,
Earnings per share (“EPS”) were $0.23 basic and $0.22 diluted, compared to $(0.02) basic and diluted.
Consolidated Adjusted EBITDA was $135.0 million, down 0.2% (4.2% on a Constant Currency basis).
Net cash provided by operating activities was $71.4 million, down 7.3%, and Free Cash Flow was $58.9 million, up 12.0%.
Adjusted EPS was $1.64, compared to $1.89.
Analytics revenues were $392.9 million, up 13.5% (9.4% on a Constant Currency basis), of which Recurring Revenue was $354.6 million, up 17.5% (13.2% on a Constant Currency basis). Adjusted EBITDA was $95.5 million, up 33.1% (26.1% on a Constant Currency basis), driving an Adjusted EBITDA margin of 24.3%, up 360 basis points (320 basis points on a Constant Currency basis).
Consistently delivered over $20 million in New Bookings per quarter despite a challenging external environment. Analytics New Bookings totalled $94.5 million, down 16.0% (19.1% on a Constant Currency basis), of which Recurring New Bookings were $64.5 million, down 13.3% (16.3% on a Constant Currency basis).
Reflecting the reset of the U.K. annuity billings, Property Tax revenues were $263.1 million, down 2.0% (4.6% on a Constant Currency basis), and Adjusted EBITDA was $69.3 million, down 20.9% (23.1% on a Constant Currency basis). Excluding the $33.2 million impact of the U.K. annuity billings in 2022, revenue growth was 11.8% (8.9% on a Constant Currency basis).
Appraisals and Development Advisory revenues were $117.6 million, down 3.2% (3.1% on a Constant Currency basis) and Adjusted EBITDA was $11.5 million, down 32.5% (32.3% on a Constant Currency basis).
The Company purchased 105,400 shares in FY 2023 for $4.6 million under its NCIB.
Key contact
Camilla Bartosiewicz
Chief Communications Officer
Key contact
Camilla Bartosiewicz
Chief Communications Officer
About Altus Group
Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services.
Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, proprietors, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle.
Altus Group is a global company headquartered in Toronto with approximately 3,000 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit www.altusgroup.com.
Forward-looking Information
Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes, but is not limited to, the discussion of the Company’s business, strategies and expectations of future performance, including any guidance on financial expectations, and its expectations with respect to cash flows and liquidity. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate”, “intend”, “plan”, “would”, “could”, “should”, “continue”, “goal”, “objective”, “remain” and other similar terminology.
Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may not be known and may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that the Company identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information (including the 2024 Business Outlook Summary) include, but are not limited to: engagement and product pipeline opportunities in Analytics will result in associated definitive agreements; continued adoption of cloud subscriptions by the Company’s customers; retention of material clients and bookings; sustaining the Company’s software and subscription renewals; settlement volumes in the Property Tax reportable segment occurring on a timely basis and assessment authorities processing appeals in a manner consistent with expectations; successful execution of the Company’s business strategies; consistent and stable economic conditions or conditions in the financial markets including stable interest rates and credit availability for CRE; consistent and stable legislation in the various countries in which the Company operate; consistent and stable foreign exchange conditions; no disruptive changes in the technology environment; opportunity to acquire accretive businesses and the absence of negative financial and other impacts resulting from strategic investments or acquisitions on short term results; successful integration of acquired businesses; and continued availability of qualified professionals.
Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks include, but are not limited to: the commercial real estate market, the general state of the economy; the Company’s financial performance; the Company’s financial targets; the Company’s international operations; acquisitions; business interruption events; third party information and data; cybersecurity; industry competition; professional talent; the Company’s subscription renewals; the Company’s sales pipeline; client concentration and loss of material clients; the Company’s cloud transition; product enhancements and new product introductions; technological strategy; intellectual property; property tax appeals and seasonality; compliance with laws and regulations; privacy and data protection; artificial intelligence; the Company’s use of technology; the Company’s leverage and financial covenants; interest rates; inflation; the Company’s brand and reputation; fixed price and contingency engagements; currency fluctuations; credit; tax matters; health and safety hazards; the Company’s contractual obligations; legal proceedings; regulatory review; the Company’s insurance limits; the Company’s ability to meet the solvency requirements necessary to make dividend payments; the Company’s share price; the Company’s capital investments; the issuance of additional common shares and debt, the Company’s internal and disclosure controls; environmental, social and governance (“ESG”) matters; climate risk; and geopolitical risks, as well as those described in the Company’s annual publicly filed documents, including the Annual Information Form for the year ended December 31, 2023 (which are available on SEDAR+ at www.sedarplus.ca).
Investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although The Company has attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, the Company’s financial or operating results, or the Company’s securities.
Certain information in this press release, including sections entitled “2024 Business Outlook Summary”, may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
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