Mr. Richard Adair reports

PLURIBUS TECHNOLOGIES CORP. ANNOUNCES Q4 2023 FINANCIAL RESULTS

Pluribus Technologies Corp. has released its financial results for the fourth quarter ended Dec. 31, 2023. The company's consolidated financial statements and accompanying notes for the quarters ended Dec. 31, 2023, and 2022, are available under Pluribus's profile on SEDAR+. All dollar amounts are in thousands of dollars unless otherwise noted. Certain metrics, including adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), are non-international financial reporting standard measures.

"The company continues to deliver positive EBITDA during a challenging macroeconomic environment while we navigate our banking challenges and explore strategic alternatives to maximize shareholder value through the strategic review process," said Richard Adair, chief executive officer of Pluribus.

Selected financial and business highlights for the fourth quarter and 2023 fiscal year:

• Revenue for the three months to Dec. 31, 2023, was $9,237, a decline of $826 or 8 per cent, when compared with the prior-year quarter. The decline in revenue was primarily driven by lower customer spending in e-learning. Adjusted EBITDA for the quarter decreased by $257, or 17 per cent, due to the decline in revenue.
• Revenue for the 12 months ended Dec. 31, 2023, declined by 4 per cent to $36,779 in 2023. For the 12 months ended Dec. 31, 2023, adjusted EBITDA was $4,143, a decrease of 26 per cent, versus the comparable period. The decrease was the result of lower adjusted EBITDA from the e-learning business unit.
• In 2023, the company announced total restructuring to reduce annualized costs by $2,800 to $3,200, which will be fully reflected in operating results in first quarter 2024. Adjusted EBITDA in Q4 2023 benefited from some of the cost savings being realized.
• Net loss for the quarter ended Dec. 31, 2023, was $9,532, compared with net income of $637 in the comparable period. The increase in net loss is primarily attributable to an impairment charge booked to e-learning goodwill and intangible assets of $10,000, offset by a gain on the revaluation of contingent consideration of $3,011.
• For the 12 months ended Dec. 31, 2023, net loss was $15,662, an increase of $8,807 or 78 per cent, versus the comparable period. The loss to December, 2023, increased due to the e-learning impairment charge of $10,000 and the decline in adjusted EBITDA of $1,473, and an increase in income tax expense of $2,236, offset by the increase in the gain on revaluation of contingent consideration of $3,343.
• Cash on hand at Dec. 31, 2023, was $1,279 compared with $5,323 on Dec. 31, 2022. During Q4 2023, the company determined that it was not in compliance with its external debt covenants under the fiscal 2022 credit facility relating to its financial position as at Sept. 30, 2023. The company signed a forbearance agreement with National Bank on Jan. 18, 2024. The agreement was subsequently amended in March, 2024, and April, 2024.
• During Q4 2023, the company announced a review and evaluation of strategic alternatives that may be available to the company to further enhance the company's growth, development and prosperity in the short and long terms with the goal of maximizing shareholder value. The company has established a special committee of the board of directors for such purpose and has engaged Canaccord Genuity as its strategic adviser. The special committee continues to explore the viability of raising capital through debt financing/refinancing, equity rights offerings, and the sale of core and/or non-core assets.

Outlook

While management believes all the business units have significant opportunity, the company continues to be negatively affected by lower customer spending in the e-learning and e-commerce verticals in a difficult macroeconomic recessionary environment. To provide increased operating cash flow and to align its cost structure to the current revenue levels, management initiated two rounds of restructuring in 2023 with total reduced annualized costs of $2,800 to $3,200.

Conference call details

Pluribus's management team will host a conference call to discuss its fiscal 2023 fourth quarter financial results on Tuesday, April 30, 2024.

Date:  Tuesday, April 30, 2024

Time:  8:30 a.m. EDT

To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated callback.

Dial-in numbers:  416-764-8650 or 888-664-6383

Conference ID:  73395622

Webcast:  available on the events and presentations page of the company's investor website

Replay:  416-764-8677 or 888-390-0541 (playback code: 395622 followed by the number sign) -- available until midnight EDT on May 7, 2024

About Pluribus Technologies Corp.

Pluribus is a technology company that is a value-based acquirer of small, profitable, business-to-business technology companies in a range of verticals and industries. Pluribus provides its acquisitions access to experienced sales and marketing resources, strategic partnership opportunities, a diverse portfolio of customers in different geographical markets, and enabling technologies to create new revenue streams and provide the opportunity for these companies to grow in their respective markets.

We seek Safe Harbor.