Lumine Group Inc. Announces Results for the Three Months Ended March 31, 2025
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:
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:
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.)
Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)
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
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