TORONTO, May 02, 2024 (GLOBE NEWSWIRE) -- Altus Group Limited (ʺAltus" or "the Company") (TSX:AIF), a leading provider of asset and fund intelligence for commercial real estate ("CRE"), announced today its financial and operating results for the first quarter ended March 31, 2024 and the approval by its Board of Directors ("Board") of the payment of a cash dividend of $0.15 per common share for the second quarter ending June 30, 2024.   Unless otherwise indicated, all amounts are in Canadian dollars and percentages are on an as reported basis in comparison to Q1 2023. Q1 2024 Summary Consolidated revenues were $199.5 million, up 4.6% (4.3% on a Constant Currency* basis). Profit (loss) was $(0.2) million, compared to $(2.4) million.   Earnings per share ("EPS") were $(0.00) basic and diluted, compared to $(0.05) basic and diluted. Consolidated Adjusted EBITDA* was $29.8 million, up 12.2% (12.9% on a Constant Currency basis). Adjusted EPS* was $0.33, compared to $0.33. Analytics revenues were $99.0 million, up 4.6% (4.5% on a Constant Currency basis), of which Recurring Revenue* was $91.7 million, up 7.5% (7.5% on a Constant Currency basis), and Adjusted EBITDA was $23.1 million, up 14.2% (14.6% on a Constant Currency basis) driving a 23.3% Adjusted EBITDA margin*. Analytics New Bookings* totalled $19.7 million, down 8.2% (7.8% on a Constant Currency basis), of which Recurring New Bookings* were $16.0 million, up 13.7% (14.2% on a Constant Currency basis). At the end of Q1 2024, 75% of the Company's total ARGUS Enterprise ("AE") user base had been contracted on ARGUS Cloud (Cloud Adoption Rate*). Property Tax revenues were $74.1 million, up 11.2% (10.2% on a Constant Currency basis), and Adjusted EBITDA was $18.8 million, up 24.9% (24.9% on a Constant Currency basis), driving a 25.4% Adjusted EBITDA margin. Appraisals and Development Advisory revenues were $26.6 million, down 10.4% (9.6% on a Constant Currency basis) and Adjusted EBITDA was $(0.1) million, down 104.0% (103.2% on a Constant Currency basis). Net cash related to operating activities was $(3.0) million, up 90.4%, and Free Cash Flow* was $(5.7) million, up 83.5%. As at March 31, 2024, Funded debt to EBITDA ratio as defined in the Company's credit facility agreement was 2.15 times, and Net debt to Adjusted EBITDA leverage ratio* was 2.06 times. *Altus Group uses certain non-GAAP financial measures such as Adjusted Earnings (Loss), and Constant Currency; non-GAAP ratios such as Adjusted EPS; total of segments measures such as Adjusted EBITDA; capital management measures such as Free Cash Flow; and supplementary financial and other measures such as Adjusted EBITDA margin, Net debt to Adjusted EBITDA leverage ratio, New Bookings, Recurring New Bookings, Non-Recurring New Bookings, Organic Revenue, Recurring Revenue, Non-Recurring Revenue, Organic Recurring Revenue, AE Software Maintenance Retention Rate, and Cloud Adoption Rate.   Refer to the "Non-GAAP and Other Measures" section for more information on each measure and a reconciliation of Adjusted EBITDA and Adjusted Earnings (Loss) to Profit (Loss) and Free Cash Flow to Net cash provided by (used in) operating activities. "Altus Group had a solid start to the year," said Jim Hannon, Chief Executive Officer. "In Q1, our teams executed ahead of our management expectations on both revenue and Adjusted EBTIDA. With market conditions showing signs of stability, we remain well positioned for sustained revenue growth and margin expansion throughout the year. Our full year 2024 business outlook is unchanged." Summary of Operating and Financial Performance by Reportable Segment: "CC" in the tables indicates "Constant Currency".   Consolidated Quarter ended March 31, In thousands of dollars 2024 2023 % Change CC % Change Revenues $     199,543 $ 190,824 4.6% 4.3% Profit (loss) $             (153) $    (2,413) 93.7%   Adjusted EBITDA $    29,752 $      26,528 12.2% 12.9% Adjusted EBITDA margin 14.9% 13.9%     Net Cash provided by (used in) operating activities $      (2,969) $       (30,982) 90.4%   Free Cash Flow* $       (5,684) $      (34,414) 83.5%                 Analytics   Quarter ended March 31, In thousands of dollars 2024 2023 % Change CC % Change Revenues $ 98,996 $ 94,644 4.6% 4.5% Adjusted EBITDA $ 23,087 $ 20,212 14.2% 14.6% Adjusted EBITDA margin 23.3% 21.4% 190 bps 210 bps           Other Measures         Recurring Revenue $ 91,731 $ 85,324 7.5% 7.5% New Bookings* $ 19,657 $ 21,408 (8.2%) (7.8%) Recurring New Bookings $ 15,987 $ 14,064 13.7% 14.2% Non-Recurring New Bookings* $ 3,670 $ 7,344 (50.0%) (50.0%) AE Software Maintenance Retention Rate* 89% 98%     Geographical revenue split         North America 77% 77%     International 23% 23%     Cloud Adoption Rate* (as at end of period) 75% 67%               Property Tax   Quarter ended March 31, In thousands of dollars 2024 2023 % Change CC% Change Revenues $ 74,125 $ 66,684 11.2% 10.2% Adjusted EBITDA $ 18,830 $ 15,072 24.9% 24.9% Adjusted EBITDA margin 25.4% 22.6% 280 bps 300 bps           Appraisals and Development Advisory   Quarter ended March 31, In thousands of dollars 2024 2023 % Change CC% Change Revenues $ 26,622 $ 29,712 (10.4%) (9.6%) Adjusted EBITDA (120) $ 2,978 (104.0%) (103.2%) Adjusted EBITDA margin (0.5%) 10.0% (1,050 bps) (1,040 bps)           Q1 2024 Review On a consolidated basis, revenues were $199.5 million, up 4.6% (4.3% on a Constant Currency basis) and Adjusted EBITDA was $29.8 million, up 12.2% (12.9% on a Constant Currency basis). Adjusted EPS was $0.33, compared to $0.33 in the first quarter of 2023. Profit (loss) was $(0.2) million and $(0.00) per share, basic and diluted, compared to $(2.4) million and $(0.05) per share basic and diluted, in the same period in 2023. Profit (loss) benefitted from higher revenues and lower operating expenditures, offset by higher employee compensation costs, costs relating to the 2024 global restructuring program and additional acquisition and related costs. Analytics revenues increased to $99.0 million, up 4.6% (4.5% on a Constant Currency basis). Organic Revenue* growth was 3.6% (3.6% on a Constant Currency basis). Adjusted EBITDA was $23.1 million, up 14.2% (14.6% on a Constant Currency basis) driving an Adjusted EBITDA margin of 23.3%, up 190 basis points (210 basis points on a Constant Currency basis). Revenue growth was driven by robust Recurring Revenue performance benefitting from the ongoing transition to cloud subscriptions, new sales, a higher number of assets on the Valuation Management Solutions ("VMS") platform, and contribution from Forbury (acquired in December 2023). Recurring Revenue was $91.7 million, up 7.5% (7.5% on a Constant Currency basis). Organic Recurring Revenue* was $90.8 million, up 6.5% (6.4% on a Constant Currency Basis) from $85.3 million in the same period in 2023. Sequentially, Recurring Revenue decreased by 1.4% from $93.0 million in the fourth quarter of 2023, driven primarily by seasonality in sales and at VMS. Non-Recurring Revenue* was lower in the quarter compared to the prior year. New Bookings totalled $19.7 million, down 8.2% (7.8% on a Constant Currency basis). Recurring New Bookings were $16.0 million, up 13.7% (14.2% on a Constant Currency basis), and Non-Recurring New Bookings were $3.7 million, down 50.0% (50.0% on a Constant Currency basis). Adjusted EBITDA growth and margin expansion benefitted from higher revenues, operating efficiencies, ongoing cost optimization efforts, and foreign exchange fluctuations. Property Tax revenues were $74.1 million, up 11.2% (10.2% on a Constant Currency basis) and Adjusted EBITDA was $18.8 million, up 24.9% (24.9% on a Constant Currency basis), driving an Adjusted EBITDA margin of 25.4%, up 280 basis points (300 basis points on a Constant Currency basis). The growth was driven by a strong start to the year in the U.S., offset by a decline in Canada and the U.K. In the U.S. certain appeals were settled earlier than anticipated. In Canada, the comparative performance is largely a factor of cycle timelines in Western Canada and the impact of the ongoing Ontario cycle extension. In the U.K. it is largely a factor of timing settlements as the backlog of opportunities remains robust. Appraisals and Development Advisory revenues were $26.6 million, down 10.4% (9.6% on a Constant Currency basis) and Adjusted EBITDA was $(0.1) million, down 104.0% (103.2% on a Constant Currency basis). Adjusted EBITDA declined primarily from reduction in revenues. The performance reflects muted market activity in the current economic environment as the business segment has some exposure to reduced transaction volumes and higher interest rates, resulting in fewer appraisals and new project starts. Corporate Costs were $12.0 million, compared to $11.7 million in the same period in 2023. Corporate costs remained relatively consistent, with higher costs from annual merit and benefits costs increases. During the first quarter, the Company initiated a global restructuring program as part of its ongoing efforts to optimize its operating model.   Restructuring costs were $5.4 million, primarily relating to employee severance costs impacting the Analytics business segment and corporate functions. Free Cash Flow was $(5.7) million, and Net cash related to operating activities was $(3.0) million, both were up 83.5% and 90.4%, respectively.   Free Cash Flow in the quarter reflected the impact of the Company's annual bonus payouts and increased working capital balances that are typical with the seasonality of the first quarter. On a year-over-year view, the first quarter in the prior year was impacted by the anticipated delayed billings from the enterprise resource planning system implementation. However, Free Cash Flow in the first quarter of 2024 was higher than the first quarter of 2022 ($(9.7 million) which represents a better comparative period and reflects the Company's continued focus on cash generation. As at March 31, 2024, bank debt was $328.6 million and cash and cash equivalents were $44.3 million (representing a Funded debt to EBITDA ratio as defined in the Company's credit facility agreement of 2.15 times, or a Net debt to Adjusted EBITDA leverage ratio of 2.06 times). Q2 2024 Dividend Altus Group's Board approved the payment of a cash dividend of $0.15 per common share for the second quarter ending June 30, 2024, with payment to be made on July 15, 2024 to common shareholders of record as at June 30, 2024. Altus Group's Dividend Reinvestment Plan ("DRIP") permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the Company. For shareholders who wish to reinvest their dividends under the DRIP, Altus Group intends to issue common shares from treasury at a price equal to 96% of the weighted average closing price of the shares for the five trading days preceding the dividend payment date.   Full details of the DRIP program are available on the Company website. Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as ʺeligible dividendsʺ for purposes of subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise. Q1 2024 Results Conference Call & Webcast       Date:Time:Webcast:Live Call:Replay:                            Thursday, May 2, 20245:00 p.m. (ET)https://events.q4inc.com/attendee/3281065301-888-660-6785 (toll-free) (Conference ID: 8366990)A replay of the call will be available via the webcast at altusgroup.com       About Altus Group Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services. Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, proprietors, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle. Altus Group is a global company headquartered in Toronto with approximately 3,000 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX:AIF) please visit www.altusgroup.com. Non-GAAP and Other Measures Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). Management believes that these measures may assist investors in assessing an investment in the Company's shares as they provide additional insight into the Company's performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures ...