GlobeNewswire Inc | Feb 18, 2021 04:05PM EST

February 18, 2021

Second Quarter Fiscal Year 2021

-- Record revenue of $117.2 million, representing an increase of 8.7% year-over-year -- Net income was $2.5 million (non-GAAP adjusted net income of $6.2 million) -- Adjusted EBITDA increased 18.7% to $17.6 million, achieved record adjusted EBITDA margin of 15.0% -- Company raises fiscal year 2021 guidance

WASHINGTON, Feb. 18, 2021 (GLOBE NEWSWIRE) -- IBEX Limited(ibex), a leading global provider of outsourced CX solutions, today announced financial results for three and six months ended December 31, 2020.

In May 2015, when I joined ibex as CEO, I set out on a vision to be a growth leader, a leader in the nearshore markets and to push to and above 15% adjusted EBITDA, said Bob Dechant, Chief Executive Officer of ibex. I am proud to report that we are achieving each of these goals and delivered a record second quarter. Revenues increased to an all-time high of $117.2 million, as our organic growth continues to outpace the industry. We received the very prestigious Frost and Sullivan Central America and Caribbean CX Company of the year award which validates and distinguishes our success in the nearshore market. And lastly, we reported 15% adjusted EBITDA for the quarter!

Dechant continued, We had full focus on execution this quarter delivering on the critical seasonal ramps for our clients. As evidenced by our results, we had a stellar quarter of performance. Despite the growing cases of COVID-19 throughout the world, we continued managing all of our centers and kept all of our Work@Home employees operational. In addition, during the quarter we launched a new center in Jamaica, expanded in the Philippines, we won several key new logos, and we grew our sales pipeline to position us for growth in the second half of 2021 and beyond.

Second Quarter Fiscal Year 2021 Financial Highlights:Revenue

-- Revenue increased 8.7% to $117.2 million, compared to $107.8 million in the prior year quarter.

Net Income

-- Net income was $2.5 million, including $1.6 million in non-recurring costs, compared to net income of $4.8 million in the prior year quarter. -- Non-GAAP adjusted net income increased to $6.2 million, compared to $5.6 million in the prior year quarter (see Exhibit 1 for reconciliation). -- Net margin was 2.1%, compared to 4.4% in the prior year quarter. -- On a Non-GAAP basis, net margin increased to 5.3%, compared to 5.2% in the prior year quarter (see Exhibit 1 for reconciliation).

Adjusted EBITDA

-- Non-GAAP adjusted EBITDA, increased to $17.6 million, compared to $14.8 million in the prior year quarter (see Exhibit 2 for reconciliation). -- Non-GAAP adjusted EBITDA margin increased to 15.0%, compared to 13.8% in the prior year quarter.

Earnings Per Share

-- IFRS basic and fully diluted earnings per share was $0.14 and $0.13, respectively, compared to IFRS basic and fully diluted earnings per share of $0.00 and $0.00, respectively, in the prior year quarter.* -- Non-GAAP pro forma fully diluted adjusted earnings per share (see Exhibit 1 for reconciliation) increased to $0.33, compared to $0.30 in the prior year quarter.

* IFRS fully diluted earnings per share for the three and six months ended December 31, 2019 does not reflect the recapitalization that occurred in connection with ibexs August 7, 2020 initial public offering.

Balance Sheet

-- Strong cash position of $74.6 million compared to $21.9 million at June 30, 2020. -- Non-GAAP net debt (see Exhibit 4 below) decreased to $50.7 million, compared to $84.1 million as of June 30, 2020.

Second Quarter of Fiscal Year 2021 Business Highlights:

-- Top three client concentration decreased to 36.4% from 45.1% in the prior year quarter -- Won 3 new customer logos across key verticals, including healthcare and utilities -- Opened a new 1,200 seat center in Jamaica and added 600 seats in the Philippines -- New Economy revenue increased by 10.5% compared to the prior year quarter, and when adjusted for one client that was adversely impacted by the pandemic, New Economy revenue increased by 28.1%.

Raised Fiscal Year 2021 Business Outlook

We are raising our fiscal year 2021 guidance for revenue to between $445 million and $448 million, an increase of approximately 10% over the prior year, compared to $440 million to $443 million previously provided.

Adjusted EBITDA is now expected to be between $62.0 million and $63.5 million, an increase of approximately 14% to 17% over the prior year, compared to $60.5 million to $62.0 million previously provided.

Conference Call and Webcast Information

IBEX Limited will host a conference call and live webcast to discuss its second quarter of fiscal year 2021 financial results at 4:30 p.m. Eastern Time today, February 18, 2021. To access the conference call, dial (833) 614-1408 for the U.S. or Canada, or for international callers (914) 987-7129 and provide conference ID 6963453. The webcast will be available live on the Investors section of ibex's website at: https://investors.ibex.co/.

An audio replay of the call will also be available to investors beginning at approximately 7:30 p.m. Eastern Time on February 18, 2021, until 7:30 p.m. Eastern Time on February 25, 2021, by dialing (855) 859-2056 for the U.S. or Canada, or for international callers, (404) 537-3406 and entering passcode 6963453. In addition, an archived webcast will be available on the Investors section of ibex's website at: https://investors.ibex.co/.

Financial Information

While the financial figures included in this press release have been computed in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, Interim Financial Reporting. The financial information in this press release has not been audited.

ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, fair value adjustments, share-based compensation expense, and impairment of assets. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

Non-GAAP Financial Measures

We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures depict the true performance of the business by encompassing only relevant and controllable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under IFRS as issued by the IASB and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles.

About ibex

ibex helps the worlds preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.

Forward Looking Statements

In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as believe, may, will, estimate, continue, anticipate, intend, should, plan, expect, predict, potential, or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: developments relating to COVID-19; the Frontier restructuring and its proceedings under Chapter 11 of the United States Bankruptcy Code; our ability to attract new business and retain key clients; our ability to enter into multi-year contracts with our clients at appropriate rates; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities; our ability to operate as an integrated company under the ibex brand; our ability to manage portions of our business that have long sales cycles and long implementation cycles that require significant resources and working capital; our ability to manage our international operations, particularly in Pakistan and the Philippines and increasingly in Jamaica and Nicaragua; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security; our ability to manage the inelasticity of our labor costs relative to short-term movements in client demand; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands; our ability to maintain and enhance our reputation and brand; and other factors discussed under the heading Risk Factors in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on October 23, 2020 and any other risk factors we include in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

Media Contact: Barry Canty, Senior Vice President of Marketing, ibex, (323) 217-5428, barry.canty@ibex.co

IR Contact: Brinlea Johnson, The Blueshirt Group, 415.269.2645, brinlea@blueshirtgroup.com

IBEX LimitedUnaudited Consolidated Statements of Financial Position US$ in thousands December 31, 2020 June 30, 2020Assets Non-current assets Goodwill $ 11,832 $ 11,832 Other intangible assets 3,174 2,781 Property and equipment 103,397 84,588 Investment in joint venture 330 331 Deferred tax asset 2,400 2,223 Warrant asset 2,161 2,611 Other assets 5,532 4,834 Total non-current assets $ 128,826 $ 109,200 Current assets Trade and other receivables 74,056 62,579 Due from related parties 1,922 1,587 Cash and cash equivalents 74,615 21,870 Total current assets $ 150,593 $ 86,036 Total assets $ 279,419 $ 195,236 Equity and liabilities Equity attributable to owners of the parent Share capital $ 2 $ 12 Additional paid-in capital 158,008 96,207 Other reserves 31,889 29,456 Accumulated deficit (114,470 ) (109,527 )Total equity $ 75,429 $ 16,148 Non-current liabilities Deferred revenue $ 1,725 $ 434 Lease liabilities 72,587 62,044 Borrowings 4,217 3,782 Deferred tax liability 87 117 Other non-current liabilities 13,304 7,058 Total non-current liabilities $ 91,920 $ 73,435 Current liabilities Trade and other payables $ 51,158 $ 53,213 Income tax payables 3,200 3,087 Lease liabilities 10,858 12,668 Borrowings 37,701 27,476 Deferred revenue 4,825 3,470 Due to related parties 4,328 5,739 Total current liabilities $ 112,070 $ 105,653 Total liabilities $ 203,990 $ 179,088 Total equity and liabilities $ 279,419 $ 195,236

IBEX LimitedUnaudited Consolidated Statements of Profit or Loss and Other ComprehensiveIncome / (Loss) Three months ended December 31, Six months ended December 31,US$ inthousands,except share 2020 2019 2020 2019and per shareamountsRevenue $ 117,181 $ 107,784 $ 225,952 $ 203,131 Payroll and 78,960 73,185 151,224 139,240 related costsShare-based 617 51 2,706 93 paymentsResellercommission 3,399 4,505 7,501 9,326 and leadexpensesDepreciationand 6,983 6,413 13,422 12,113 amortizationOtheroperating 20,888 16,017 45,678 30,153 costsIncome from $ 6,334 $ 7,613 $ 5,421 $ 12,206 operations Finance (2,374 ) (2,507 ) (4,613 ) (4,814 )expensesIncome before $ 3,960 $ 5,106 $ 808 $ 7,392 taxation Income tax (1,472 ) (349 ) (1,743 ) (299 )expenseNet income / $ 2,488 $ 4,757 $ (935 ) $ 7,093 (loss) Othercomprehensive income /(loss) Items thatwill besubsequently reclassifiedto profit orlossForeigncurrency $ (77 ) $ (62 ) $ (113 ) $ (32 )translationadjustmentCash flowhedge - 52 - 85 - changes infair value $ (25 ) $ (62 ) $ (28 ) $ (32 )Totalcomprehensive $ 2,463 $ 4,695 $ (963 ) $ 7,061 income /(loss) Earnings pershareattributableto the ordinaryequityholders ofthe parentBasic $ 0.14 $ - $ (0.05 ) $ - Diluted $ 0.13 $ - $ (0.05 ) $ - Weightedaverage sharesoutstandingBasic 17,988,508 12,556,972 17,183,501 12,556,972 Diluted 18,719,169 12,755,131 17,931,867 12,755,131

IBEX Limited Unaudited Consolidated Statements of Cash Flows Three months ended December Six months ended December 31, 31,US$ in 2020 2019 2020 2019 thousandsCASH FLOWSFROM OPERATINGACTIVITIESIncomebefore $ 3,960 $ 5,105 $ 808 $ 7,391 taxationAdjustmentsto reconcileincomebeforetaxation to net cashprovided byoperatingactivities:Depreciationand 6,983 6,413 13,422 12,113 amortizationAmortizationof warrant 243 300 448 535 asset(Gain) /loss on - 16 (192 ) 16 disposal offixed assetsForeigncurrency 55 206 203 359 translationlossFair value 2,159 133 5,745 882 adjustmentPhantom 129 15 254 28 expenseShare-based 488 36 2,452 65 paymentsProvisionforretirement 66 108 144 134 benefitexpenseAllowance ofexpected 209 157 452 97 creditlossesShare ofprofit frominvestment (103 ) (175 ) (226 ) (339 ) in jointventureFinance 2,374 2,507 4,613 4,814 costs(Increase) /decrease intrade and (257 ) 7,860 (10,984 ) 3,197 otherreceivablesIncrease inprepayments (381 ) (63 ) (697 ) (536 ) and otherassets(Decrease) /increase intrade andother (8,101 ) (879 ) 1,052 (3,817 ) payables andotherliabilitiesCashgenerated 7,824 21,739 17,494 24,939 fromoperationsInterest (2,374 ) (2,507 ) (4,613 ) (4,814 ) paidIncome taxes (1,163 ) (657 ) (2,655 ) (763 ) paidNet cashinflow from $ 4,287 $ 18,575 $ 10,226 $ 19,362 operatingactivities CASH FLOWSFROM INVESTINGACTIVITIESPurchase ofproperty and $ (5,804 ) $ (2,039 ) $ (8,705 ) $ (2,239 ) equipmentPurchase ofother (557 ) (17 ) (867 ) (165 ) intangibleassetsCapitalrepayment 112 124 227 195 from jointventureNet cashoutflow from $ (6,249 ) $ (1,932 ) $ (9,345 ) $ (2,209 ) investingactivities CASH FLOWSFROM FINANCINGACTIVITIESProceedsfrom line of $ 34,231 $ 43,419 $ 66,575 $ 78,211 creditRepaymentsof line of (23,908 ) (54,320 ) (55,296 ) (81,018 ) creditProceedsfrom - - 1,714 1,000 borrowingsRepayment of (3,031 ) (1,690 ) (5,827 ) (3,389 ) borrowingsPayment ofrelated (1,614 ) - (1,614 ) - party loanNet proceedsfrom initial - - 63,107 - publicofferingPayment oflisting (227 ) - (1,052 ) - related costPrincipalpayments on (8,575 ) (3,145 ) (11,630 ) (6,145 ) leaseobligationsDividends - (121 ) (4,000 ) (121 ) paidNet cash(outflow) /inflow from $ (3,124 ) $ (15,857 ) $ 51,977 $ (11,462 ) financingactivitiesEffects ofexchangeratedifference (78 ) (62 ) (113 ) (33 ) on cash andcashequivalentsNet(decrease) /increase in $ (5,164 ) $ 724 $ 52,745 $ 5,658 cash andcashequivalentsCash andcashequivalents $ 79,779 $ 13,807 $ 21,870 $ 8,873 at beginningof theperiodCash andcashequivalents $ 74,615 $ 14,531 $ 74,615 $ 14,531 at end ofthe period

IBEX LimitedReconciliation of IFRS Financial Measures to Non-GAAP Financial Measures

EXHIBIT 1: Adjusted net income and pro forma fully diluted adjusted earnings per share

We define Adjusted net income as net income / (loss) before the effect of the following items: non-recurring expenses (including litigation and settlement expenses, costs related to COVID-19, and expenses related to our initial public offering), other income, fair value adjustment related to the Amazon warrant, share-based payments, foreign exchange gains or losses, and impairment losses, as applicable, net of the tax effect of such adjustments. We define pro forma fully diluted adjusted earnings per share as Adjusted net income for the period divided by the weighted average fully diluted shares outstanding for the current periods.

Three months ended December 31, Six months ended December 31, 2020 2019 2020 2019 US$ in thousands,except share and Amount Per Share Amount Per Share Amount Per Share Amount Per Share per share amountsNet income / $ 2,488 $ 0.13 $ 4,757 $ 0.25 ^ $ (935 ) $ (0.05 ) $ 7,093 $ 0.40 ^(loss) (3) (3)Non-recurring 1,593 $ 0.09 596 $ 0.03 5,991 $ 0.33 596 $ 0.03 expensesOther income (140 ) $ (0.01 ) (188 ) $ (0.01 ) (291 ) $ (0.02 ) (387 ) $ (0.02 ) Fair value 2,159 $ 0.12 133 $ 0.01 5,745 $ 0.32 882 $ 0.05 adjustmentShare-based 617 $ 0.03 51 $ 0.00 2,706 $ 0.15 93 $ 0.01 paymentsForeign exchange 55 $ 0.00 206 $ 0.01 203 $ 0.01 359 $ 0.02 lossesTotal adjustments $ 4,284 $ 0.23 $ 798 $ 0.04 $ 14,354 $ 0.80 $ 1,543 $ 0.09 Tax impact of (611 ) $ (0.03 ) 38 $ 0.00 (2,057 ) $ (0.11 ) 101 $ 0.01 adjustments^(1)Adjusted net $ 6,161 $ 0.33 $ 5,593 $ 0.30 $ 11,363 $ 0.63 $ 8,737 $ 0.49 incomeAdjusted net 5.3 % 5.2 % 5.0 % 4.3 % income margin IFRS Weightedaverage fully 18,719,169 12,755,131 17,931,867 12,755,131 diluted sharesoutstandingAdjustment forshare - 5,964,039 - 5,176,736 re-capitalizationon August 7, 2020Pro forma fullydiluted sharesoutstanding and 18,719,169 $ 0.33 18,719,169 $ 0.30 17,931,867 $ 0.63 17,931,867 $ 0.49 pro formaadjusted earningsper share^(2)

(1) The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdiction.(2) We provide pro forma fully diluted adjusted earnings per share because the share structure for the prior year does not reflect the re-capitalization that occurred in connection with ibexs initial public offering on August 7, 2020. For purposes of this calculation, we have included 18,719,169 shares for the three months ended December 31, 2019, and 17,931,867 shares for the six months ended December 31, 2019, the weighted average fully diluted shares outstanding for the three and six months ended December 31, 2020, respectively, in order to enhance comparability between the current and prior year periods. Beginning with the first quarter of fiscal year 2022, our share structure will be comparable year over year, and this measure will reflect the respective periods weighted average fully diluted shares outstanding.(3) On an IFRS basis, this amount is $0.00. For purposes of this reconciliation, it represents the proforma impact of the share re-capitalization on August 7, 2020.

EXHIBIT 2: EBITDA and Adjusted EBITDA

We define EBITDA as net (loss) / income before the effect of the following items: finance expenses (including finance costs related to lease liabilities), income tax expense / (benefit), and depreciation and amortization (including depreciation of right-of-use assets). We define Adjusted EBITDA as EBITDA before the effect of the following items: non-recurring expenses (including litigation and settlement expenses, costs related to COVID-19, and expenses related to our initial public offering), other income, fair value adjustment related to the Amazon warrant, share-based payments, foreign exchange gains or losses, and impairment losses, as applicable.

Three months ended December Six months ended December 31, 31,US$ in thousands 2020 2019 2020 2019Net income / (loss) $ 2,488 $ 4,757 $ (935 ) $ 7,093 Finance expense 2,374 2,507 4,613 4,814 Income tax expense 1,472 349 1,743 299 Depreciation and 6,983 6,413 13,422 12,113 amortizationEBITDA $ 13,317 $ 14,026 $ 18,843 $ 24,319 Non-recurring expenses 1,593 596 5,991 596 Other income (140 ) (188 ) (291 ) (387 )Fair value adjustment 2,159 133 5,745 882 Share-based payments 617 51 2,706 93 Foreign exchange losses 55 206 203 359 Adjusted EBITDA $ 17,601 $ 14,824 $ 33,197 $ 25,862 Adjusted EBITDA margin 15.0 % 13.8 % 14.7 % 12.7 %

EXHIBIT 3: Free cash flow

We define free cash flow as net cash provided by operating activities less capital expenditures and lease payments on right-of-use assets.

Three months ended Six months ended December 31, December 31,US$ in thousands 2020 2019 2020 2019 Net cash provided by $ 4,287 $ 18,575 $ 10,226 $ 19,362operating activities Less: Capital expenditures 7,165 4,094 11,690 13,432Lease payments on 2,843 2,338 5,171 4,727right-of-use assetsFree cash flow $ (5,721 ) $ 12,143 $ (6,635 ) $ 1,203

EXHIBIT 4: Net debtWe define net debt as total borrowings less cash and cash equivalents.

US$ in thousands December 31, 2020 June 30, 2020Borrowings Non-current $ 4,217 $ 3,782Current 37,701 27,476 $ 41,918 $ 31,258Leases Non-current 72,587 62,044Current 10,858 12,668 $ 83,445 $ 74,712Total Debt $ 125,363 $ 105,970Cash 74,615 21,870Net debt $ 50,748 $ 84,100