GlobeNewswire Inc | Sep 24, 2020 04:05PM EDT

September 24, 2020

Fiscal Year 2020

-- Revenue increased 10% year-over-year to $405.1 million -- Net income from continuing operations increased to $7.8 million -- Adjusted EBITDA increased 49% year-over-year to $54.1 million -- Strong net cash flow from operating activities of $51.7 million

Q4 Fiscal 2020

-- Revenue increased 14.7% year-over-year to $100.9 million -- Net loss from continuing operations decreased to $3.8 million -- Adjusted EBITDA increased 83% to $13.5 million

WASHINGTON, Sept. 24, 2020 (GLOBE NEWSWIRE) -- IBEX Limited(ibex), a leading global provider of outsourced CX solutions, today announced financial results for the fourth quarter and fiscal year ended June 30, 2020.

Fiscal year 2020 was a milestone year for ibexdelivering record revenues surpassing $400 million, growing net income from continuing operations and increasing Adjusted EBITDA to over $50 million, commented Bob Dechant, chief executive officer of ibex. We continue to be focused on helping the worlds leading brands connect with their customers in unique and innovative ways, with particular focus on technology-led digital solutions. We also won important new logos with new economy and blue chip clients, and reported 100% client retention. Based on our expected revenue growth and robust pipeline, we are confident in our ability to accelerate additional customer wins, expand geographically and deliver solid cash flow in 2021.

Fiscal Year 2020 Financial Highlights:

Revenue

-- Revenue increased 10% to $405.1 million, compared to $368.4 million in the prior year.

Net Income / (Loss) From Continuing Operations

-- Net income from continuing operations increased to $7.8 million, compared to a net loss from continuing operations of $4.5 million in the prior year. -- Net income / (loss) from continuing operations margin increased to 1.9%, compared to (1.2)% in the prior year. -- Non-GAAP adjusted net income from continuing operations increased to $15.6 million, compared to $1.8 million in the prior year.

Adjusted EBITDA

-- Non-GAAP adjusted EBITDA from continuing operations increased to $54.1 million, compared to $36.3 million in the prior year. -- Non-GAAP adjusted EBITDA from continuing operations margin increased to 13.4%, compared to 9.9% in the prior year.

Earnings Per Share

-- IFRS fully diluted earnings per share was $0.00 in fiscal years 2020 and 2019.* -- Non-GAAP pro forma adjusted earnings per share increased to $0.84, compared to $0.10 in the prior year.

Cash Flow, Balance Sheet, and Capital Expenditures

-- Cash flow from operations increased to $51.7 million, compared to $2.2 million in the prior year. -- Non-GAAP free cash flow increased to $25.6 million, compared to an outflow of $2.5 million in the prior year. -- Non-GAAP net debt decreased to $84.1 million, compared to $109.4 million in the prior year. -- Capital expenditures were $16.9 million, or 4.2% of revenue, compared to $9.7 million, or 2.6% of prior year revenue.

Fourth Quarter 2020 Financial Highlights:

Revenue

-- Revenue of $100.9 million was minimally impacted by COVID-19, and increased 14.7% compared to the prior year quarter.

Net Income / (Loss) From Continuing Operations

-- Net loss from continuing operations decreased to $3.8 million, compared to a net loss from continuing operations of $4.6 million in the prior year quarter. -- Net loss from continuing operations margin decreased to (3.8)%, compared to (5.3)% in the prior year quarter. -- Non-GAAP adjusted net income from continuing operations increased to $2.6 million, compared to a non-GAAP adjusted net loss from continuing operations of $1.4 million in the prior year quarter.

Adjusted EBITDA

-- Non-GAAP adjusted EBITDA from continuing operations increased to $13.5 million, compared to $7.4 million in the prior year quarter. -- Non-GAAP adjusted EBITDA from continuing operations margin increased to 13.4%, compared to 8.4% in the prior year quarter.

Earnings Per Share

-- IFRS fully diluted earnings per share was $0.00 in the fourth quarter of fiscal years 2020 and 2019.* -- Non-GAAP pro forma adjusted earnings per share increased to $0.14, compared to ($0.07) in the prior year quarter.

* IFRS fully diluted earnings per share does not reflect the recapitalization that occurred in connection with ibexs initial public offering.

Fiscal Year 2020 Business Highlights:

-- Added 24 new customer logos -- Top three client concentration decreased to 43.7% from 50.6% in the prior year -- Launched the Wave X Purpose Built Technology Suite enabling highly customized CX solutions -- Digital business increased to 30% of our overall revenue to $119.6 million -- New Economy revenue increased by 35% compared to prior year -- Non-voice revenue increased by 42% compared to prior year -- Increased our nearshore and offshore footprint by opening three new sites and adding 1,730 workstations in the Philippines and 843 in nearshore sites, boosting our non-US capacity by 35% over prior year -- Expanded our digital marketing and on-line customer acquisition solutions by adding the Healthcare, Financial Services and Utility industries to our portfolio

2021 Business Outlook

IBEX Limited expects full year 2021 revenue of $431 million to $435 million and Adjusted EBITDA from continuing operations of $59.5 million to $61 million.

Conference CallandWebcast Information

IBEX Limited will host a conference call and live webcast to discuss its fourth quarter and fiscal year 2020 financial results at 4:30 p.m. Eastern Time today, September 24, 2020. 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 5273769. 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 6:30 p.m. Eastern Time on September 24, 2020, until 7:30 p.m. Eastern Time on October 1, by dialing (855) 859-2056 for the U.S. or Canada, or for international callers, (404) 537-3406 and entering passcode 5273769. 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 for the fourth quarter and applicable to financial statements for the fiscal year, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, Interim Financial Reporting nor a financial statement as defined by International Accounting Standards 1 Presentation of Financial Statements. The financial information in this press release has not been audited. Results for the fourth quarter of fiscal year 2020 and 2019 were calculated based on the difference between our unaudited results for fiscal year 2020 and 2019, respectively, and our previously-reported results for the nine months ended March 31, 2020 and 2019, respectively. Our independent registered public accounting firm, BDO LLP, has not audited, reviewed, compiled, or performed any procedures with respect to our results for the fourth quarter of fiscal year 2020 or 2019.

Non-GAAP Financial Measures

We provide non-GAAP financial measures in addition to reported IFRS results prepared in accordance with IFRS. Management believes these measures help illustrate underlying trends in ibex's business and uses the non-GAAP financial measures to establish budgets and operational goals, for managing ibex's business and evaluating its performance. We anticipate that we will continue to report both IFRS and certain non-GAAP financial measures in our financial results. Because ibex's non-GAAP financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-GAAP measures reported by other companies within ibex's industry. Consequently, our non-GAAP financial measures should not be evaluated in isolation or replace comparable IFRS measures, but, rather, should be considered together with our unaudited consolidated statements of financial position, unaudited consolidated statements of profit or loss and other comprehensive income, and unaudited consolidated statements of cash flows presented herein and prepared in accordance with IFRS issued by IASB.

In this earnings release, we are introducing adjusted net income / (loss) from continuing operations, which we define as net income / (loss) from continuing operations 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), impairment, other income, fair value adjustment related to the Amazon warrant, share-based payments, and foreign exchange gains or losses. We believe these items are not reflective of our long-term performance. We use adjusted net income / (loss) from continuing operations internally to understand what we believe to be the recurring nature of our net income / (loss) from continuing operations and as a basis to calculate a pro forma adjusted earnings per share now that our initial public offering has been consummated. We also believe that adjusted net income / (loss) from continuing operations is widely used by investors, securities analysts and other interested parties as a supplemental measure of profitability.

ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA from continuing operations 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.

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 final prospectus filed with the U.S. Securities and Exchange Commission (the SEC) on August 10, 2020, our annual report on Form 20-F to be filed with the SEC 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: Rosemary Hanratty, Senior Director of Marketing, ibex, 412.539.7099, rosemary.hanratty@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 June 30, 2020 June 30, 2019Assets Non-current assets Goodwill $ 11,832 $ 11,832 Other intangible assets 2,781 2,928 Property and equipment 84,588 82,309 Investment in joint venture 331 227 Deferred tax asset 2,223 2,517 Warrant asset 2,611 3,316 Other assets 4,834 3,398 Total non-current assets $ 109,200 $ 106,527 Current assets Trade and other receivables 62,579 71,134 Due from related parties 1,587 1,768 Cash and cash equivalents 21,870 8,873 Total current assets $ 86,036 $ 81,775 Total assets $ 195,236 $ 188,302 Equity and liabilities Equity attributable to owners of the parent

Share capital $ 12 $ 12 Additional paid-in capital 96,207 96,207 Other reserves 29,456 29,585 Accumulated deficit (109,527 ) (117,176 )Total equity $ 16,148 $ 8,628 Non-current liabilities Deferred revenue $ 434 $ 753 Lease liabilities 62,044 58,602 Borrowings 3,782 7,184 Deferred tax liability 117 147 Other non-current liabilities 7,058 1,607 Total non-current liabilities $ 73,435 $ 68,293 Current liabilities Trade and other payables $ 53,213 $ 46,890 Income tax payables 3,087 1,467 Lease liabilities 12,668 10,632 Borrowings 27,476 41,835 Deferred revenue 3,470 4,388 Due to related parties 5,739 6,169 Total current liabilities $ 105,653 $ 111,381 Total liabilities $ 179,088 $ 179,674 Total equity and liabilities $ 195,236 $ 188,302

IBEX LimitedUnaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income

Quarter ended Year endedUS$ in June 30, 2020 June 30, June 30, 2020 June 30, 2019thousands 2019Revenue $ 100,880 $ 87,915 $ 405,135 $ 368,380 Payroll and 69,009 63,098 276,255 254,592 related costsShare-based 478 48 359 4,087 paymentsResellercommission and 3,724 4,839 17,328 27,877 lead expensesDepreciationand 6,012 5,203 24,472 20,895 amortizationOther operating 22,391 17,004 67,208 54,124 costsIncome / (loss) (734 ) (2,277 ) 19,513 6,805 from operations Finance (2,238 ) (2,251 ) (9,428 ) (7,709 )expensesIncome / (loss) (2,972 ) (4,528 ) 10,085 (904 )before taxation Income tax (833 ) (119 ) (2,315 ) (3,615 )expenseNet income /(loss) from (3,805 ) (4,647 ) 7,770 (4,519 )continuingoperationsNet income ondiscontinued - 8,568 - 15,484 operation, netof taxNet income /(loss) for the (3,805 ) 3,921 7,770 10,965 year Othercomprehensive income / (loss)Item that willnot besubsequently reclassified toprofit or lossActuarial(loss) / gain (184 ) 109 (184 ) 109 on retirementbenefitsItem that willbe subsequently reclassified toprofit or lossForeigncurrency (211 ) (64 ) (248 ) (316 )translationadjustmentCash flow hedge- changes in (518 ) - (518 ) - fair value (913 ) 45 (950 ) (207 )Totalcomprehensive $ (4,718 ) $ 3,966 $ 6,820 $ 10,758 income / (loss) Loss per sharefrom continuingoperationsattributable to the ordinaryequity holdersof the parentBasic loss per $ - $ - $ - $ - share Diluted loss $ (0.29 ) $ (0.37 ) $ - $ (0.36 )per share Loss per shareattributable tothe ordinary equity holdersof the parentBasic loss per $ - $ - $ - $ - share Diluted loss $ - $ - $ - $ - per share

IBEX LimitedUnaudited Consolidated Statements of Cash Flows

Quarter ended Year endedUS$ in June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019thousandsCASH FLOWSFROM OPERATINGACTIVITIESIncome /(loss) $ (2,972 ) $ 5,325 $ 10,085 $ 19,410 beforetaxationAdjustments for:Depreciationand 6,012 5,498 24,472 21,805 amortizationAmortizationof warrant 154 178 705 643 assetForeigncurrency (444 ) (602 ) (195 ) 78 translationlossShare 2,506 1 3,138 (364 )warrantsPhantom 166 33 (31 ) (300 )expenseShare-based 312 30 390 5,262 paymentsAllowance ofexpected 123 184 224 343 creditlossesShare ofprofit frominvestment (119 ) (39 ) (533 ) (351 )in jointventure(Gain) /loss on 63 (99 ) (10 ) (140 )disposal offixed assetsProvisionfor defined (13 ) 129 121 129 benefitschemeImpairmenton 777 - 777 163 intangiblesFinance 2,239 3,747 9,429 13,383 costsDecrease /(Increase)in trade and 888 (1,992 ) 9,042 (18,019 )otherreceivablesIncrease inrenewal - (15,290 ) - (35,022 )receivablesIncrease inprepayments (35 ) (167 ) (1,435 ) (173 )and otherassetsIncrease intrade andother 12,027 13,130 7,106 8,997 payables andotherliabilitiesCashgenerated 21,684 10,066 63,285 15,844 fromoperationsInterest (2,239 ) (3,784 ) (9,429 ) (13,054 )paidIncome taxes (1,379 ) (260 ) (2,137 ) (588 )paidNet cashinflow from $ 18,066 $ 6,022 $ 51,719 $ 2,202 operatingactivities CASH FLOWSFROM INVESTINGACTIVITIESPurchase ofproperty and $ (264 ) $ (2,910 ) $ (4,283 ) $ (5,612 )equipmentPurchase ofother (497 ) (78 ) (982 ) (622 )intangibleassetsReturn oninvestment (309 ) - - 96 from jointventureProceed fromsale of - 109 - 188 assetsCashadjustmentfrom sale of - (3,554 ) - (3,554 )subsidiaryto parentcompanyCapitalrepayment 430 144 430 420 from jointventureNet cashoutflow from $ (640 ) $ (6,289 ) $ (4,835 ) $ (9,084 )investingactivities CASH FLOWSFROM FINANCINGACTIVITIESProceedsfrom line of $ 20,042 $ 36,515 $ 127,567 $ 168,674 creditRepaymentsof line of (24,633 ) (36,349 ) (142,118 ) (162,851 )creditProceedsfrom - 2,284 1,000 36,617 borrowingsRepayment of (3,227 ) (2,192 ) (8,033 ) (6,081 )borrowingsRepayment ofrelated - - - (1,200 )party loansPrincipalpayments on (3,227 ) (2,895 ) (12,162 ) (10,535 )leaseobligationsRepaymentprivate - - - (14,500 )placementnotesDividend - (1,600 ) (121 ) (1,600 )distributionPayment ofsenior - - - (5,972 )preferredsharesNet cash(outflow) /inflow from $ (11,045 ) $ (4,237 ) $ (33,867 ) $ 2,552 financingactivities Effects ofexchangeratedifference 18 (60 ) (20 ) (316 )on cash andcashequivalentsNet increase/ (decrease)in cash and $ 6,399 $ (4,564 ) $ 12,997 $ (4,646 )cashequivalentsCash andcashequivalents $ 15,471 $ 13,437 $ 8,873 $ 13,519 at beginningof theperiodCash andcashequivalents $ 21,870 $ 8,873 $ 21,870 $ 8,873 at end ofthe period

IBEX LimitedUnaudited Supplemental Non-GAAP Information

Reconciliation of Net Income from continuing operations to Adjusted EBITDA fromcontinuing operations Quarter ended June 30, Year ended June 30,US$ in 2020 2019 2020 2019 thousandsNet income /(loss) from $ (3,805 ) $ (4,647 ) $ 7,770 $ (4,519 )continuingoperationsFinance expense 2,238 2,251 9,428 7,709 Income tax 833 119 2,315 3,615 expenseDepreciationand 6,012 5,203 24,472 20,895 amortizationEBITDA fromcontinuing $ 5,278 $ 2,926 $ 43,985 $ 27,700 operationsNon-recurring 5,085 4,239 6,482 4,239 expensesImpairment 777 - 777 163 Other income (227 ) (177 ) (745 ) (804 )Fair value 2,506 1 3,138 (364 )adjustmentShare-based 478 48 359 4,087 paymentsForeignexchange (gain) (372 ) 349 151 1,274 / lossAdjusted EBITDAfrom continuing $ 13,525 $ 7,386 $ 54,147 $ 36,295 operations

Reconciliation of Net income / (loss) from continuing operations to Adjustednet income / (loss) from continuing operations Quarter ended June 30, Year ended June 30,US$ in 2020 2019 2020 2019 thousandsNet income /(loss) from $ (3,805 ) $ (4,647 ) $ 7,770 $ (4,519 )continuingoperationsNon-recurring 5,085 4,239 6,482 4,239 expensesImpairment 777 - 777 163 Other income (227 ) (177 ) (745 ) (804 )Fair value 2,506 1 3,138 (364 )adjustmentShare-based 478 48 359 4,087 paymentsForeignexchange (gain) (372 ) 349 151 1,274 / lossTotal $ 8,247 $ 4,460 $ 10,162 $ 8,595 adjustmentsNormalized tax 22.9 % 26.5 % 22.9 % 26.5 %rate*Tax impact of (1,889 ) (1,182 ) (2,327 ) (2,278 )adjustments Adjusted netincome / (loss) $ 2,553 $ (1,369 ) $ 15,605 $ 1,798 from continuingoperations * The 2019 tax rate has been adjusted to remove the impact of thecancellation of the legacy ESOP plan.

Calculation of pro forma adjusted earnings per share

Quarter ended June 30, Year ended June 30,US$ in 2020 2019 2020 2019 thousands Adjustednet income/ (loss) $ 2,553 $ (1,369 ) $ 15,605 $ 1,798 fromcontinuingoperationsPro formafully 18,680,377 18,680,377 18,680,377 18,680,377 dilutedshares*Pro formaadjustedearnings / $ 0.14 $ (0.07 ) $ 0.84 $ 0.10 (loss) pershare * Pro forma fully diluted shares outstanding immediately following our initial public offering in August 2020.

Calculation of free cash flow Year ended June 30,US$ in thousands 2020 2019 Net cash inflow from operating activities $ 51,719 $ 2,202 Add: Impact of discontinued operations - 13,396 Less: Capital expenditures 16,917 9,707 Lease payments on right-of-use assets 9,147 8,411 Free cash flow $ 25,655 $ (2,520 )

Calculation of Net Debt US$ in thousands June 30, 2020 June 30, 2019Borrowings Current $ 27,476 $ 41,835 Non-Current 3,782 7,184 $ 31,258 $ 49,019 Leases Current 12,668 10,632 Non-Current 62,044 58,602 $ 74,712 $ 69,234 Total Debt $ 105,970 $ 118,253 Cash 21,870 8,873 Net Debt $ 84,100 $ 109,380