Fourth Quarter delivers positive Adjusted EBITDA during a challenging time for the Company TORONTO, April 29, 2024 /CNW/ - Pluribus Technologies Corp. (TSXV:PLRB) ("Pluribus" or the "Company"), an acquiror of small, profitable technology companies, today announced its financial results for the fourth quarter ended December 31, 2023. The Company's consolidated financial statements and accompanying notes for the quarters ended December 31, 2023 and 2022 are available under Pluribus' profile on SEDAR (www.sedarplus.com). All dollar amounts are in thousands of Canadian dollars unless otherwise noted. Certain metrics, including Adjusted EBITDA, are non-IFRS measures (see "Non-IFRS Measures" below). "The Company continues to deliver positive EBITDA during a challenging macroeconomic environment while we navigate our banking challenges and explore strategic alternatives to maximize shareholder value through the strategic review process," said Richard Adair, CEO of Pluribus Technologies. Selected Financial and Business Highlights for the Fourth Quarter and 2023 Fiscal Year Revenue for the three months to December 31, 2023, was $9,237, a decline of $826 or 8% when compared to the prior year quarter. The decline in revenue was primarily driven by lower customer spending in eLearning. Adjusted EBITDA1 for the quarter decreased by $257, or 17% due to the decline in revenue. Revenue for the twelve months ended December 31, 2023 declined by 4% to $36,779 in 2023. For the twelve months ended December 31, 2023, Adjusted EBITDA was $4,143, a decrease of 26% versus the comparable period. The decrease was the result of lower Adjusted EBITDA from the eLearning business unit. In 2023, the Company announced total restructuring to reduce annualized costs by $2,800 to $3,200, which will be fully reflected in operating results in Q1 2024. Adjusted EBITDA in Q4 2023 benefited from some of the cost savings being realized. Net loss for the quarter ended December 31, 2023 was $9,532, compared to net income of $637 in the comparable period. The increase in net loss is primarily attributable to an impairment charge booked to eLearning goodwill and intangible assets of $10,000, offset by a gain on the revaluation of contingent consideration of $3,011. For the twelve months ended December 31, 2023, net loss was $15,662, an increase of $8,807 or 78%, versus the comparable period. The loss to December 2023 increased due to the eLearning impairment charge of $10,000 and the decline in Adjusted EBITDA of $1,473, and an increase in income tax expense of $2,236, offset by the increase in the gain on revaluation of contingent consideration of $3,343. Cash on hand at December 31, 2023 was $1,279 compared with $5,323 on December 31, 2022. During Q4 2023, the Company determined that it was not in compliance with its external debt covenants under the FY2022 Credit Facility relating to its financial position as at September 30, 2023. The Company signed a forbearance agreement with National Bank in January 18, 2024. The agreement was subsequently amended in March 2024 and April 2024. During Q4 2023, the Company announced a review and evaluation of strategic alternatives that may be available to the Company to further enhance the Company's growth, development and prosperity in the short and long terms with the goal of maximizing shareholder value. The Company has established a Special Committee of the Board of Directors for such purpose and has engaged Canaccord Genuity as its strategic advisor. The Special Committee continues to explore the viability of raising capital through debt financing/refinancing, equity rights offerings, and the sale of core and/or noncore assets. Results of Operations (000's) Three Months Twelve Months For the period ended December 31, 2023 2022 Var Var 2023 2022 Var Var $ $ $ % $ $ $ % Revenue 9,237 10,063 (826) -8 % # 36,779 38,120 (1,341) -4 % Gross Profit 6,066 6,309 (243) -4 % # 23,566 24,370 (804) -3 % Operating Expenses 4,770 4,756 14 0 % # 19,423 18,754 669 4 % Non-Operational Expenses 10,327 2,032 7,883 388 % # 19,260 16,114