- Quarterly revenue grew 6.1% versus prior year quarter – highest growth in 9 quarters
- Strong adjusted EBITDA margin expansion year-over-year – 10 out of the last 11 quarters
- Adjusted EPS of $0.59 – an increase of 36% to prior year quarter
- Raises guidance on revenue and lower end of EBITDA range
- Repurchased approximately 3.6 million shares from TRGI during the second quarter of fiscal year 2025, representing 21% of our shares outstanding and eliminating controlled company status
WASHINGTON, Feb. 06, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its second fiscal quarter ended December 31, 2024.
| Three months ended December 31, |
Six months ended December 31, |
||||||||||||||||||||
| ($ millions, except per share amounts) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| Revenue | $ | 140,682 | $ | 132,634 | 6.1 | % | $ | 270,399 | $ | 257,243 | 5.1 | % | |||||||||
| Net income | $ | 9,268 | $ | 6,075 | 52.6 | % | $ | 16,799 | $ | 13,500 | 24.4 | % | |||||||||
| Net income margin | 6.6 | % | 4.6 | % | 200bps | 6.2 | % | 5.2 | % | 100bps | |||||||||||
| Adjusted net income (1) | $ | 9,615 | $ | 8,024 | 19.8 | % | $ | 18,647 | $ | 15,598 | 19.5 | % | |||||||||
| Adjusted net income margin (1) | 6.8 | % | 6.0 | % | 80bps | 6.9 | % | 6.1 | % | 80bps | |||||||||||
| Adjusted EBITDA (1) | $ | 16,537 | $ | 14,324 | 15.4 | % | $ | 32,125 | $ | 28,035 | 14.6 | % | |||||||||
| Adjusted EBITDA margin (1) | 11.8 | % | 10.8 | % | 100bps | 11.9 | % | 10.9 | % | 100bps | |||||||||||
| Earnings per share – diluted (2) | $ | 0.57 | $ | 0.33 | 73.6 | % | $ | 1.00 | $ | 0.72 | 38.0 | % | |||||||||
| Adjusted earnings per share – diluted (1,2) | $ | 0.59 | $ | 0.44 | 36.3 | % | $ | 1.11 | $ | 0.84 | 32.5 | % | |||||||||
| (1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure. | |||||||||||||||||||||
| (2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented. | |||||||||||||||||||||
“Coming off an outstanding start to fiscal year 2025, I am thrilled to report another quarter of record financial results,” said Bob Dechant, ibex CEO. “Q2 saw our highest revenue growth for ibex in two years with revenues growing over 6%. Our growth continues to be driven by winning new clients and increasing market share within our embedded base clients. These key wins resulted in 14% revenue growth in our most profitable offshore regions. I am also excited to report that we have continued to add key AI opportunity wins that will be deployed in the second half of the year that are expected to drive accretive revenue and margin.”
“Q2 fiscal year 2025 was a strong quarter on all profitability metrics as adjusted EPS grew 36%, adjusted EBITDA grew 15%, and adjusted net income increased 20%, compared to prior year quarter,” added Dechant. “Beyond this, over the last three months we completed a number of important strategic actions, highlighted by the $70 million share repurchase from The Resource Group International Limited (“TRGI”) in November, which has numerous benefits including removing our controlled company status, the additions of JJ Zhuang and Patrick McGinnis to our Board of Directors, and the most recent addition to our Board in January, Karen Batungbacal.”
Second Quarter Financial Performance
Revenue
- Revenue of $140.7 million, an increase of 6.1% from $132.6 million in the prior year quarter. Growth in HealthTech (+31.2%), Travel, Transportation and Logistics (+16.7%), and Retail & E-commerce (+4.4%), was partially offset by declines in the FinTech vertical (-14.7%).
Net Income and Earnings Per Share
- Net income increased to $9.3 million compared to $6.1 million in the prior year quarter. Diluted earnings per share increased to $0.57 compared to $0.33 in the prior year quarter. The increases were primarily the result of the impact of revenue growth particularly in our higher margin offshore regions, improved gross margin performance, and fewer diluted shares outstanding compared to the prior year quarter.
- Net income margin increased to 6.6% compared to 4.6% in the prior year quarter.
- Non-GAAP adjusted net income increased to $9.6 million compared to $8.0 million in the prior year quarter (see Exhibit 1 for reconciliation).
- Non-GAAP adjusted diluted earnings per share increased to $0.59 compared to $0.44 in the prior year quarter (see Exhibit 1 for reconciliation). The increase per share was primarily attributable to the impact of higher revenue, improved operating margins and a lower share count.
Non-GAAP adjusted EBITDA
- Adjusted EBITDA increased to $16.5 million compared to $14.3 million in the prior year quarter (see Exhibit 2 for reconciliation).
- Adjusted EBITDA margin increased to 11.8% compared to 10.8% in the prior year quarter (see Exhibit 2 for reconciliation).
Cash Flow and Balance Sheet
- Repurchased approximately 3.6 million shares from TRGI for an aggregate price of $70 million during the second quarter of fiscal 2025.
- Capital expenditures were $4.3 million compared to $2.9 million in the prior year quarter. The increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions.
- Cash flow from operating activities was $1.1 million compared to $(1.6) million in the prior year quarter. Free cash flow was $(3.2) million compared to $(4.5) million in the prior year quarter (see Exhibit 3 for reconciliation).
- Net debt was $13.7 million compared to net cash of $61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation). The utilization of cash and debt is primarily attributable to the share repurchase from TRGI.
“We achieved strong top and bottom line second quarter results. We accelerated our top-line momentum with over 6% revenue growth, driven by new client wins over the last year and continued expansion of our embedded client base made possible by our strong service delivery,” said Taylor Greenwald, CFO of ibex.
“Our profitability continues to improve, where for 10 of the last 11 quarters we have delivered year-over-year adjusted EBITDA margin expansion, enabling strategic investments in AI capabilities and sales resources. These results instill continued confidence in the execution of our strategy throughout 2025, enabling us to raise our fiscal year guidance and continue to return value to shareholders.”
Raised Fiscal Year 2025 Guidance
- Revenue is expected to be in the range of $525 to $535 million versus a previous range of $515 to $525 million.
- Adjusted EBITDA is expected to be in the range of $68 to $69 million versus a previous range of $67 to $69 million.
- Capital expenditures are expected to remain in the range of $15 to $20 million.
Conference Call and Webcast Information
IBEX Limited will host a conference call and live webcast to discuss its second quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, February 6, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.
Live and archived webcasts can be accessed at: https://investors.ibex.co/.
Financial Information
This announcement does not contain sufficient information to constitute an interim financial report as defined in Financial Accounting Standards ASC 270, “Interim Reporting.” The financial information in this press release has not been audited.
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 provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable 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, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under GAAP 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 GAAP.
ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable GAAP 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, foreign currency gains and losses, and share-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.
About ibex
ibex helps the world’s 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 press 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: our ability to attract new business and retain key clients; our profitability based on our utilization, pricing and managing costs; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse; general economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues; our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua; natural events, health epidemics, global geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other attacks of violence involving any of the countries in which we or our clients operate; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands, including the effective adoption of Artificial Intelligence into our offerings; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption; the effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; the impact of tax matters, including new legislation and actions by taxing authorities; and other factors discussed in the “Risk Factors” described in our periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and past filings on Form 20-F, and any other risk factors we include in subsequent filings with the SEC. 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.
IR Contact: Michael Darwal, EVP, Investor Relations, ibex, [email protected]
Media Contact: Daniel Burris, VP, Marketing and Communication, ibex, [email protected]
IBEX LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands)
| December 31, 2024 |
June 30, 2024 |
||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 20,206 | $ | 62,720 | |||
| Accounts receivable, net | 120,581 | 98,366 | |||||
| Prepaid expenses | 6,905 | 7,712 | |||||
| Due from related parties | 317 | 192 | |||||
| Tax advances and receivables | 8,968 | 9,080 | |||||
| Other current assets | 2,039 | 1,888 | |||||
| Total current assets | 159,016 | 179,958 | |||||
| Non-current assets | |||||||
| Property and equipment, net | 32,168 | 29,862 | |||||
| Operating lease assets | 54,057 | 59,145 | |||||
| Goodwill | 11,832 | 11,832 | |||||
| Deferred tax asset, net | 5,052 | 4,285 | |||||
| Other non-current assets | 10,373 | 8,822 | |||||
| Total non-current assets | 113,482 | 113,946 | |||||
| Total assets | $ | 272,498 | $ | 293,904 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 19,924 | $ | 16,719 | |||
| Accrued payroll and employee-related liabilities | 33,278 | 30,674 | |||||
| Current deferred revenue | 7,223 | 4,749 | |||||
| Current operating lease liabilities | 12,208 | 12,051 | |||||
| Current maturities of long-term debt | 8,217 | 660 | |||||
| Convertible debt | 25,000 | — | |||||
| Due to related parties | 149 | 60 | |||||
| Income taxes payable | 4,643 | 6,083 | |||||
| Total current liabilities | 110,642 | 70,996 | |||||
| Non-current liabilities | |||||||
| Non-current deferred revenue | 1,119 | 1,128 | |||||
| Non-current operating lease liabilities | 48,286 | 53,441 | |||||
| Long-term debt | 695 | 867 | |||||
| Other non-current liabilities | 2,819 | 1,673 | |||||
| Total non-current liabilities | 52,919 | 57,109 | |||||
| Total liabilities | 163,561 | 128,105 | |||||
| Stockholders’ equity | |||||||
| Common stock | 1 | 2 | |||||
| Additional paid-in capital | 212,116 | 210,200 | |||||
| Treasury stock | (101,606 | ) | (25,367 | ) | |||
| Accumulated other comprehensive loss | (7,250 | ) | (7,913 | ) | |||
| Retained earnings / (deficit) | 5,676 | (11,123 | ) | ||||
| Total stockholders’ equity | 108,937 | 165,799 | |||||
| Total liabilities and stockholders’ equity | $ | 272,498 | $ | 293,904 | |||
14IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands, except per share data)
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 140,682 | $ | 132,634 | $ | 270,399 | $ | 257,243 | |||||||
| Cost of services (exclusive of depreciation and amortization presented separately below) | 98,762 | 95,884 | 188,803 | 184,080 | |||||||||||
| Selling, general and administrative | 25,706 | 24,857 | 51,921 | 47,897 | |||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| Total operating expenses | 128,754 | 125,687 | 249,379 | 241,965 | |||||||||||
| Income from operations | 11,928 | 6,947 | 21,020 | 15,278 | |||||||||||
| Interest income | 311 | 512 | 894 | 1,098 | |||||||||||
| Interest expense | (620 | ) | (111 | ) | (782 | ) | (215 | ) | |||||||
| Income before income taxes | 11,619 | 7,348 | 21,132 | 16,161 | |||||||||||
| Provision for income tax expense | (2,351 | ) | (1,273 | ) | (4,333 | ) | (2,661 | ) | |||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Other comprehensive income | |||||||||||||||
| Foreign currency translation adjustments | $ | (911 | ) | $ | 679 | $ | 477 | $ | (22 | ) | |||||
| Unrealized (loss) / gain on cash flow hedging instruments, net of tax | (193 | ) | 395 | 186 | 201 | ||||||||||
| Total other comprehensive (loss) / income | (1,104 | ) | 1,074 | 663 | 179 | ||||||||||
| Total comprehensive income | $ | 8,164 | $ | 7,149 | $ | 17,462 | $ | 13,679 | |||||||
| Net income per share | |||||||||||||||
| Basic | $ | 0.61 | $ | 0.34 | $ | 1.05 | $ | 0.75 | |||||||
| Diluted | $ | 0.57 | $ | 0.33 | $ | 1.00 | $ | 0.72 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 15,126 | 17,885 | 16,007 | 18,084 | |||||||||||
| Diluted | 16,456 | 18,440 | 16,977 | 18,667 | |||||||||||
IBEX LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| Noncash lease expense | 3,083 | 3,297 | 6,409 | 6,522 | |||||||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Deferred income tax | (637 | ) | 52 | (767 | ) | 296 | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Allowance of expected credit losses | 240 | (5 | ) | 323 | 6 | ||||||||||
| Change in assets and liabilities: | |||||||||||||||
| Increase in accounts receivable | (14,856 | ) | (14,544 | ) | (22,505 | ) | (18,336 | ) | |||||||
| Decrease / (increase) in prepaid expenses and other current assets | 722 | (936 | ) | (1,013 | ) | (2,192 | ) | ||||||||
| (Decrease) / increase in accounts payable and accrued liabilities | (1,496 | ) | 338 | 3,078 | 544 | ||||||||||
| Increase in deferred revenue | 2,386 | 673 | 2,465 | 301 | |||||||||||
| Decrease in operating lease liabilities | (3,090 | ) | (3,267 | ) | (6,446 | ) | (6,451 | ) | |||||||
| Net cash inflow / (outflow) from operating activities | 1,141 | (1,637 | ) | 8,903 | 7,047 | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
| Purchase of property and equipment | (4,319 | ) | (2,892 | ) | (7,949 | ) | (4,944 | ) | |||||||
| Net cash outflow from investing activities | (4,319 | ) | (2,892 | ) | (7,949 | ) | (4,944 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
| Proceeds from line of credit | 9,100 | 59 | 9,160 | 96 | |||||||||||
| Repayments of line of credit | (1,600 | ) | (59 | ) | (1,660 | ) | (148 | ) | |||||||
| Proceeds from the exercise of options | 342 | 6 | 724 | 11 | |||||||||||
| Principal payments on finance leases | (182 | ) | (116 | ) | (353 | ) | (204 | ) | |||||||
| Purchase of treasury shares | (46,562 | ) | (8,442 | ) | (51,369 | ) | (10,274 | ) | |||||||
| Net cash outflow from financing activities | (38,902 | ) | (8,552 | ) | (43,498 | ) | (10,519 | ) | |||||||
| Effects of exchange rate difference on cash and cash equivalents | (19 | ) | 68 | 30 | 3 | ||||||||||
| Net decrease in cash and cash equivalents | (42,099 | ) | (13,013 | ) | (42,514 | ) | (8,413 | ) | |||||||
| Cash and cash equivalents, beginning | 62,305 | 62,029 | 62,720 | 57,429 | |||||||||||
| Cash and cash equivalents, ending | $ | 20,206 | $ | 49,016 | $ | 20,206 | $ | 49,016 | |||||||
IBEX LIMITED AND SUBSIDIARIES
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income, adjusted net income margin, and adjusted earnings per share
We define adjusted net income as net income before the effect of the following items: warrant contra revenue, foreign currency gain / loss, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.
The following table provides a reconciliation of net income to adjusted net income, net income margin to adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| ($000s, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Net income margin | 6.6 | % | 4.6 | % | 6.2 | % | 5.2 | % | |||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Foreign currency (gain) / loss | (912 | ) | 697 | 545 | (100 | ) | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Total adjustments | $ | 323 | $ | 2,431 | $ | 2,450 | $ | 2,769 | |||||||
| Tax impact of adjustments1 | 24 | (482 | ) | (602 | ) | (671 | ) | ||||||||
| Adjusted net income | $ | 9,615 | $ | 8,024 | $ | 18,647 | $ | 15,598 | |||||||
| Adjusted net income margin | 6.8 | % | 6.0 | % | 6.9 | % | 6.1 | % | |||||||
| Diluted earnings per share | $ | 0.57 | $ | 0.33 | $ | 1.00 | $ | 0.72 | |||||||
| Per share impact of adjustments to net income | 0.02 | 0.11 | 0.11 | 0.11 | |||||||||||
| Adjusted earnings per share | $ | 0.59 | $ | 0.44 | $ | 1.11 | $ | 0.84 | |||||||
| Weighted average diluted shares outstanding | 16,456 | 18,440 | 16,977 | 18,667 | |||||||||||
EXHIBIT 2: EBITDA, adjusted EBITDA, and adjusted EBITDA margin
EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: interest income, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA and net income margin to adjusted EBITDA margin for the periods presented:
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| ($000s) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 9,268 | $ | 6,075 | $ | 16,799 | $ | 13,500 | |||||||
| Net income margin | 6.6 | % | 4.6 | % | 6.2 | % | 5.2 | % | |||||||
| Interest expense | 620 | 111 | 782 | 215 | |||||||||||
| Income tax expense | 2,351 | 1,273 | 4,333 | 2,661 | |||||||||||
| Depreciation and amortization | 4,286 | 4,946 | 8,655 | 9,988 | |||||||||||
| EBITDA | $ | 16,525 | $ | 12,405 | $ | 30,569 | $ | 26,364 | |||||||
| Interest income | (311 | ) | (512 | ) | (894 | ) | (1,098 | ) | |||||||
| Warrant contra revenue | — | 307 | — | 594 | |||||||||||
| Foreign currency (gain) / loss | (912 | ) | 697 | 545 | (100 | ) | |||||||||
| Share-based compensation expense | 1,235 | 1,427 | 1,905 | 2,275 | |||||||||||
| Adjusted EBITDA | $ | 16,537 | $ | 14,324 | $ | 32,125 | $ | 28,035 | |||||||
| Adjusted EBITDA margin | 11.8 | % | 10.8 | % | 11.9 | % | 10.9 | % | |||||||
EXHIBIT 3: Free cash flow
We define free cash flow as net cash provided by operating activities less capital expenditures.
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||
| ($000s) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Net cash provided by operating activities | $ | 1,141 | $ | (1,637 | ) | $ | 8,903 | $ | 7,047 | ||||
| Less: capital expenditures | 4,319 | 2,892 | 7,949 | 4,944 | |||||||||
| Free cash flow | $ | (3,178 | ) | $ | (4,529 | ) | $ | 954 | $ | 2,103 | |||
EXHIBIT 4: Net (debt) / cash
We define net (debt) / cash as total cash and cash equivalents less debt.
| December 31, | June 30, | |||||
| ($000s) | 2024 | 2024 | ||||
| Cash and cash equivalents | $ | 20,206 | $ | 62,720 | ||
| Debt | ||||||
| Current | $ | 8,217 | $ | 660 | ||
| Convertible debt | 25,000 | — | ||||
| Non-current | 695 | 867 | ||||
| Total debt | $ | 33,912 | $ | 1,527 | ||
| Net (debt) / cash | $ | (13,706 | ) | $ | 61,193 | |
1The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.
