DIRTT Environmental Solutions Ltd. (“DIRTT”, the “Company”, “we” or “us”) (NASDAQ: DRTT, TSX: DRT), an interior construction company that uses technology for client-driven design and manufacturing, today announced its financial results for the three and nine months ended September 30, 2020. All financial information in this news release is presented in U.S. dollars, unless otherwise stated.
Third Quarter 2020
Revenue of $46.2 million
Gross profit margin of 35.1%
Adjusted Gross Profit Margin1 3%
Net loss of $2.1 million
Net loss margin of (4.5%)
Adjusted EBITDA1 of $0.9 million
Adjusted EBITDA Margin1 of 1.8%
$50.7 million cash balance
Note: (1) See “Non-GAAP Financial Measures”. We have revised our calculations of Adjusted Gross Profit Margin and Adjusted EBITDA for the periods presented.
“We continued to make substantial progress in implementing key elements of our strategic plan during the third quarter,” stated CEO Kevin O’Meara. “Preparation is underway for the launch of the next phase of our Make Space for PossibilitiesTM strategic marketing campaign, which is driving brand awareness and engagement. We continued to onboard our new partners, reinstituted in-person tours at our New York City and Calgary DIRTT Experience Centers (DXC), introduced a highly effective virtual tour, and will soon reopen our newly renovated Chicago DXC.
“In addition to delivering modestly positive adjusted EBITDA and increases to our cash balances during the quarter, our third quarter revenue of $46.2 million slighted exceeded each of the first two quarters of the year. This increase was supported by three larger projects in our healthcare vertical, one of which was in response to COVID-19. Further demonstrating our capabilities to innovate and execute rapidly on COVID-19 driven project needs, we have developed four freestanding kiosks for COVID-19 testing and vaccinations that we are now marketing across all our verticals.”
Mr. O’Meara concluded, “While we have made great strides in implementing the many commercial execution, manufacturing excellence and innovation initiatives we detailed in DIRTT’s strategic plan a year ago, the COVID-19 pandemic has significantly reduced commercial construction activity in North America. Consequently, we are seeing indications of softness in our core business for the balance of the year, with such impacts yet to be offset by COVID-19 opportunities or our newly strengthened commercial capabilities. Despite our view that Q4 and the first half of 2021 could be challenging, our strong balance sheet and enhanced organization will enable us to continue executing on our strategic plan and positioning DIRTT for growth over the long term.”
DIRTT is a global leader in industrialized construction. Its system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the commercial, healthcare, education, and public sector markets, DIRTT’s system provides total design freedom, and greater certainty in cost, schedule, and outcomes. Headquartered in the US and Canada, DIRTT trades on Nasdaq under the symbol “DRTT” and on the Toronto Stock Exchange under the symbol “DRT”.