Mr. Matt Proud reports

DYE & DURHAM REPORTS FOURTH QUARTER AND YEAR END FISCAL 2023 FINANCIAL RESULTS

Dye & Durham Ltd. has released its financial results for the three months and 12 months ended June 30, 2023.

"Our business performed with strength and resilience in the fourth quarter as we delivered on the guidance provided. We continue to grow and enhance our practice management solutions for small- and medium-sized law firms globally," said Matt Proud, chief executive officer of Dye & Durham. "At the same time, the improvements we have made to our go-to-market strategy have rapidly accelerated the amount of [annual recurring revenue] in our business. We remain focused on expanding our wallet share across the large and growing legal market we serve today while diversifying our business mix."

The company continues to increase its annual recurring revenue contracted. ARR was $83-million of total revenue as of fourth quarter 2023 and has grown to $104-million as of Aug. 31, 2023. ARR was 19 per cent of total revenue as of June 30, 2023, nearly double the 10 per cent at the same point in the prior year.

Fourth quarter fiscal 2023 highlights:

• Revenue of $120.2-million, a decrease of $9.5-million, or 7 per cent, from the same period in the prior year;
• Net income of ($89.2-million), a decrease of $85.9-million, from the same period in the prior year, primarily due to an impairment charge on an asset held for sale of $66.7-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $65.7-million, a decrease of $9.5-million, or 13 per cent, from the same period in the prior year.

Fiscal 2023 highlights:

• Revenue of $451.1-million, a decrease of $23.7-million, or 5 per cent, from the same period in the prior year;
• Net income of ($170.6-million), a decrease of $178.5-million, from the same period in the prior year;
• Adjusted EBITDA of $243.8-million, a decrease of $23.2-million, or 9 per cent, from the same period in the prior year.

Quarterly dividend

On Sept. 12, 2023, the board of directors declared a quarterly dividend of 1.875 cents per share to shareholders of record on Sept. 20, 2023, payable on or about Sept. 27, 2023.

Normal course issuer bid

The company announced today that its board of directors approved a normal course issuer bid to acquire a portion of its outstanding common shares, as appropriate opportunities arise from time to time, for cancellation over the next 12 months. The prior-year NCIB, announced on Sept. 27, 2022, terminates on Sept. 29, 2023. Dye & Durham intends to renew its NCIB because it believes that, from time to time, the market price of the shares may not fully reflect the underlying value of Dye & Durham's business and future prospects. Dye & Durham believes that, at such times, the repurchase of the shares for cancellation would be in the best interests of shareholders. The NCIB will be made in accordance with the requirements of the Toronto Stock Exchange and applicable securities laws, and remains subject to the Toronto Stock Exchange's acceptance of the company's notice of intention to make a normal course issuer bid. Further details concerning the NCIB will be provided in due course.

Conference call notification

The company will hold a conference call to discuss its business later today, Wednesday, Sept. 13, 2023, at 4:30 p.m. ET, hosted by senior management. A question-and-answer session will follow the corporate update.

Date:  Wednesday, Sept. 13, 2023

Time:  4:30 p.m. ET

Rapid connect:  To instantly join the conference call by phone, please register to connect into the conference call automatically.

Traditional dial-in number:  416-764-8659 or 888-664-6392

Reference No.:  10319158

Taped replay:  416-764-8677 or 888-390-0541

Replay code:  319158 followed by the number sign

This call is being webcast.

About Dye & Durham Ltd.

Dye & Durham provides premier practice management solutions empowering legal professionals every day, delivers vital data insights to support critical corporate transactions, and enables the essential payments infrastructure trusted by government and financial institutions. The company has operations in Canada, the United Kingdom, Ireland, Australia and South Africa.

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