Descartes Announces Fiscal 2022 First Quarter Financial Results

Report Revenues and Revenue from Operations

WATERLOO, Ontario, June 02, 2021 (GLOBE NEWSWIRE) — The Descartes Methods Group Inc. (TSX:DSG) (Nasdaq:DSGX) introduced its monetary outcomes for its fiscal 2022 first quarter (Q1FY22). All monetary outcomes referenced are in United States (US) forex and, except in any other case indicated, are decided in accordance with US Usually Accepted Accounting Ideas (GAAP).

“We consider that by serving to our clients succeed, Descartes will succeed. The monetary outcomes we’ve reported as we speak replicate that,” mentioned Edward J. Ryan, Descartes’ CEO. “Our clients face advanced multi-party, multi-process provide chain and logistics challenges. That is much more so in latest instances the place our clients have confronted fast adjustments in provide, demand and commerce laws. Our World Logistics Community is designed for these advanced situations, serving to shippers, carriers, customs authorities and logistics companies suppliers join and collaborate to execute the complete lifecycle of shipments. We proceed to innovate to assist our clients put together for tomorrow’s challenges, and we proceed so as to add extra options and buying and selling companions to our community. Because of this, our clients have trusted us with extra of their enterprise.”

Q1FY22 Monetary Outcomes
As described in additional element beneath, key monetary highlights for Q1FY22 included:

• Revenues of $98.8 million, up 18% from $83.7 million within the first quarter of fiscal 2021 (Q1FY21) and up 6% from $93.4 million within the earlier quarter (Q4FY21);
• Revenues had been comprised of companies revenues of $88.3 million (90% of complete revenues), skilled companies and different revenues of $9.2 million (9% of complete revenues) and license revenues of $1.3 million (1% of complete revenues). Companies revenues had been up 19% from $74.1 million in Q1FY21 and up 7% from $82.7 million in Q4FY21;
• Money supplied by working actions of $40.9 million, up 49% from $27.5 million in Q1FY21 and up 12% from $36.5 million in Q4FY21;
• Revenue from operations of $23.4 million, up 49% from $15.7 million in Q1FY21 and up 7% from $21.9 million in Q4FY21;
• Internet earnings of $18.4 million, up 67% from $11.0 million in Q1FY21 and up 7% from $17.2 million in Q4FY21;
• Earnings per share on a diluted foundation of $0.21, up 62% from $0.13 in Q1FY21 and up 5% from $0.20 in Q4FY21; and
• Adjusted EBITDA of $41.5 million, up 26% from $33.0 million in Q1FY21 and up 8% from $38.6 million in Q4FY21. Adjusted EBITDA as a share of revenues was 42%, in comparison with 39% in Q1FY21 and 41% in Q4FY21.

Adjusted EBITDA and Adjusted EBITDA as a share of revenues are non-GAAP monetary measures supplied as a complement to monetary outcomes offered in accordance with GAAP. We outline Adjusted EBITDA as earnings earlier than curiosity, taxes, depreciation, amortization, stock-based compensation (for which we embody associated charges and taxes) and different prices (for which we embody restructuring prices and acquisition-related bills). These things are thought of by administration to be outdoors Descartes’ ongoing operational outcomes. We outline Adjusted EBITDA as a share of revenues because the quotient, expressed as a share, from dividing Adjusted EBITDA for a interval by revenues for the corresponding interval. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a share of revenues to internet earnings decided in accordance with GAAP is supplied later on this launch.

The next desk summarizes Descartes’ ends in the classes specified beneath over the previous 5 fiscal quarters (unaudited; greenback quantities, apart from per share quantities, in hundreds of thousands):

Money Place 
At April 30, 2021, Descartes had $138.1 million in money. Money elevated $4.4 million in Q1FY22. The desk set forth beneath gives a abstract of money flows for Q1FY22:

Acquisition of QuestaWeb 
On February 26, 2021, Descartes acquired QuestaWeb, a US-based supplier of international commerce zone (FTZ) and customs compliance options. The acquisition worth for the acquisition was roughly $35.9 million, internet of money acquired, which was funded from money available.

Acquisition of Portrix 
On Might 7, 2021, Descartes acquired the entire shares of Portrix Logistics Software program GmbH, a supplier of multimodal fee administration options for logistics companies suppliers. The acquisition worth for the acquisition was roughly $25.1 million (EUR 20.7 million), internet of money acquired, which was funded from money available.

Convention Name 
Members of Descartes’ government administration staff will host a convention name to debate the corporate’s monetary outcomes as we speak at 5:00 p.m. ET, Wednesday, June 2. Designated numbers are +1 888 465-5079 for North America and +1 416 216-4169 for worldwide, utilizing Passcode 5071 268#.

The corporate will concurrently conduct an audio webcast on the Descartes Web page at www.descartes.com/descartes/investor-relations. Telephone convention dial-in or webcast log-in is required roughly 10 minutes beforehand. A digital replay of the convention name will likely be accessible following the decision from 8:00 p.m. ET, and till June 9, 2021, at www.descartes.com/descartes/investor-relations.

About Descartes 
Descartes (Nasdaq:DSGX) (TSX:DSG) is the worldwide chief in offering on-demand, software-as-a-service options targeted on enhancing the productiveness, efficiency and safety of logistics-intensive companies. Clients use our modular, software-as-a-service options to route, schedule, observe and measure supply sources; plan, allocate and execute shipments; fee, audit and pay transportation invoices; entry international commerce information; file customs and safety paperwork for imports and exports; and full quite a few different logistics processes by taking part on the earth’s largest, collaborative multimodal logistics group. Our headquarters are in Waterloo, Ontario, Canada and we now have workplaces and companions world wide. Study extra at www.descartes.com, and join with us on LinkedIn and Twitter. 

Descartes Investor Contact:

Laurie McCauley +1-519-746-6114 x202358
investor@descartes.com

Protected Harbor Assertion
This launch could include forward-looking data inside the which means of relevant securities legal guidelines (“forward-looking statements”) that pertains to Descartes’ expectations regarding future revenues and earnings, and our projections for any future reductions in bills or development in margins and era of money; our evaluation of the present and future potential influence of the COVID-19 pandemic on our enterprise, outcomes of operations and monetary situation; continued development and acquisitions together with our evaluation of any elevated alternative for our services on account of tendencies within the logistics and provide chain industries; fee of worthwhile development; demand for Descartes’ options; development of Descartes’ World Logistics Community (“GLN”); buyer shopping for patterns; buyer expectations of Descartes; growth of the GLN and the advantages thereof to clients; and different issues. These forward-looking statements are based mostly on sure assumptions together with the next: international cargo volumes persevering with at ranges usually in keeping with these skilled traditionally; the present COVID-19 pandemic not having a fabric damaging influence on cargo volumes or on the demand for the services of Descartes by its clients and the flexibility of these clients to proceed to pay for these services; international locations persevering with to implement and implement present and extra customs and safety laws regarding the supply of digital data for imports and exports; international locations persevering with to implement and implement present and extra commerce restrictions and sanctioned social gathering lists with respect to doing enterprise with sure international locations, organizations, entities and people; Descartes’ continued operation of a safe and dependable enterprise community; the soundness of common financial and market circumstances, forex alternate charges, and rates of interest; fairness and debt markets persevering with to offer Descartes with entry to capital; Descartes’ continued capacity to determine and supply engaging and executable enterprise mixture alternatives; Descartes’ capacity to develop options that maintain tempo with the persevering with adjustments in know-how, and our continued compliance with third social gathering mental property rights. These assumptions could show to be inaccurate. Such forward-looking statements contain recognized and unknown dangers, uncertainties and different components which will trigger the precise outcomes, efficiency or achievements of Descartes, or developments in Descartes’ enterprise or business, to vary materially from the anticipated outcomes, efficiency or achievements or developments expressed or implied by such forward-looking statements. Such components embody, however are usually not restricted to, Descartes’ capacity to efficiently determine and execute on acquisitions and to combine acquired companies and property, and to foretell bills related to and revenues from acquisitions; the influence of community failures, data safety breaches or different cyber-security threats; disruptions within the motion of freight and a decline in cargo volumes together with on account of contagious sickness outbreaks; a deterioration of common financial circumstances or instability within the monetary markets accompanied by a lower in spending by our clients; the flexibility to draw and retain key personnel and the flexibility to handle the departure of key personnel and the transition of our government administration staff; adjustments in commerce or transportation laws that at present require clients to make use of companies resembling these supplied by Descartes; adjustments in buyer behaviour and expectations; Descartes’ capacity to efficiently design and develop enhancements to our merchandise and options; departures of key clients; the influence of international forex alternate charges; Descartes’ capacity to retain or acquire enough capital along with its debt facility to execute on its enterprise technique, together with its acquisition technique; disruptions within the motion of freight; the potential for future goodwill or intangible asset impairment on account of other-than-temporary decreases in Descartes’ market capitalization; and different components and assumptions mentioned within the part entitled, “Sure Components That Might Have an effect on Future Outcomes” in paperwork filed with the Securities and Change Fee, the Ontario Securities Fee and different securities commissions throughout Canada, together with Descartes’ most not too long ago filed Administration’s Dialogue and Evaluation. If any such dangers really happen, they might materially adversely have an effect on our enterprise, monetary situation or outcomes of operations. In that case, the buying and selling worth of our widespread shares may decline, maybe materially. Readers are cautioned to not place undue reliance upon any such forward-looking statements, which communicate solely as of the date made. Ahead-looking statements are supplied for the aim of offering details about administration’s present expectations and plans regarding the longer term. Readers are cautioned that such data is probably not acceptable for different functions. We don’t undertake or settle for any obligation or enterprise to launch publicly any updates or revisions to any forward-looking statements to replicate any change in our expectations or any change in occasions, circumstances or circumstances on which any such assertion relies, besides as required by regulation.

Reconciliation of Non-GAAP Monetary Measures – Adjusted EBITDA and Adjusted EBITDA as a share of revenues

We put together and launch quarterly unaudited and annual audited monetary statements ready in accordance with GAAP. We additionally disclose and talk about sure non-GAAP monetary data, used to judge our efficiency, on this and different earnings releases and investor convention calls as a complement to outcomes supplied in accordance with GAAP. We consider that present shareholders and potential buyers in our firm use non-GAAP monetary measures, resembling Adjusted EBITDA and Adjusted EBITDA as a share of revenues, in making funding selections about our firm and measuring our operational outcomes.

The time period “Adjusted EBITDA” refers to a monetary measure that we outline as earnings earlier than sure prices that administration considers to be non-operating bills and which include curiosity, taxes, depreciation, amortization, stock-based compensation (for which we embody associated charges and taxes) and different prices (for which we embody restructuring prices and acquisition-related bills). Adjusted EBITDA as a share of revenues divides Adjusted EBITDA for a interval by the revenues for the corresponding interval and expresses the quotient as a share.

Administration considers these non-operating bills to be outdoors the scope of Descartes’ ongoing operations and the associated bills are usually not utilized by administration to measure operations. Accordingly, these bills are excluded from Adjusted EBITDA, which we reference to each measure our operations and as a foundation of comparability of our operations from period-to-period. Administration believes that buyers and monetary analysts measure our enterprise on the identical foundation, and we’re offering the Adjusted EBITDA monetary metric to help on this analysis and to offer a better stage of transparency into how we measure our personal enterprise. Nevertheless, Adjusted EBITDA and Adjusted EBITDA as a share of revenues are non-GAAP monetary measures and is probably not corresponding to equally titled measures reported by different corporations. Adjusted EBITDA and Adjusted EBITDA as a share of revenues shouldn’t be construed as an alternative choice to internet earnings decided in accordance with GAAP or different non-GAAP measures which may be utilized by different corporations, resembling EBITDA. Using Adjusted EBITDA and Adjusted EBITDA as a share of revenues does have limitations. Specifically, we now have accomplished 9 acquisitions for the reason that starting of fiscal 2020 and should full further acquisitions sooner or later that may lead to acquisition-related bills and restructuring prices. As these acquisition-related bills and restructuring prices could proceed as we pursue our consolidation technique, some buyers could think about these prices and bills as a recurring a part of operations slightly than bills that aren’t a part of operations.

The desk beneath reconciles Adjusted EBITDA and Adjusted EBITDA as a share of revenues to internet earnings reported in our unaudited Consolidated Statements of Operations for Q1FY22, Q4FY21, Q3FY21, Q2FY21, and Q1FY21, which we consider is essentially the most straight comparable GAAP measure.

The Descartes Methods Group Inc.
Condensed Consolidated Steadiness Sheets
(US {dollars} in hundreds; US GAAP; Unaudited)

The Descartes Methods Group Inc.
Consolidated Statements of Operations
(US {dollars} in hundreds, besides per share and weighted common share quantities; US GAAP; Unaudited)

The Descartes Methods Group Inc.
Condensed Consolidated Statements of Money Flows
(US {dollars} in hundreds; US GAAP; Unaudited)