SOURCE: Distinct Infrastructure Group Inc.

Distinct Infrastructure Group Inc.

May 30, 2016 09:00 ET

Distinct Infrastructure Group Reports Record Revenues for the First Quarter of 2016

TORONTO, ON--(Marketwired - May 30, 2016) -  Distinct Infrastructure Group Inc. (TSX VENTURE: DUG) ("Distinct" or the "Company") today released its financial results for the three months ending March 31, 2016. For the period ending March 31, 2016, the Company had record revenues of $10.7 million, an increase of $4.6 million or 74% as compared to the three months ending February 28, 2015.

"Given that the first quarter has historically been the weakest quarter for the Company, the record revenues that the Company delivered in the first quarter of 2016 is further affirmation of the Company's go-forward plan and strategy," said Joe Lanni, Co-Chief Executive Officer of the Company. "The record growth experienced by Distinct was primarily organic growth from its core businesses. The Company believes that the results for the first quarter of 2016 confirms its strategy and shows that the Company is well on its way to meeting its financial objectives for 2016."

Further commenting on the positive financial results, Alex Agius, Co-Chief Executive Officer of the Company, stated, "We are pleased with the financial results of our first quarter of 2016 and believe that this reaffirms our positive outlook regarding continued growth for the balance of 2016. Distinct expects to increase its top and bottom lines in 2016 through strong organic performance and strategic platform acquisitions. The Company continues to evaluate opportunities that will enhance its capabilities, increase its customer base and add the valuable resources required to meet its operational goals."

Other highlights:

  • EBITDA of $1.029 million in 2016 as compared to $0.718 million in 2015, a 43.3% increase. EBITDA margin was 9.6% in 2016 compared to 11.6% in the prior period.
  • The majority of top-line growth has been organic, as the Company continues to procure additional projects and increase its book of business with established key and new clients. Organic growth in Ontario continues to keep pace with its existing customers' increasing workload, fueled by projects initiated by some of Canada's largest communication companies, various utilities and municipalities across the province.

Consolidated Financial Highlights

         
    March 31, 2016   December 31, 2015
Total current assets   36,524,124   35,908,724
Total non-current assets   17,730,773   14,376,669
Total Assets   54,254,897   50,285,393
         
Current liabilities   11,327,398   8,719,675
Long-term debt, debentures & finance lease obligations   26,639,797   25,050,270
Total Liabilities   37,967,195   33,769,945
         
Total Shareholders' Equity   16,287,702   16,515,448
Total Liabilities & Shareholders' Equity   54,254,897   50,285,393
           
           
    3 months ended     3 months ended
    March 31, 2016     February 28, 2015
       
Revenue   10,759,455     6,164,553
           
Expenses          
Direct costs   7,668,678     4,301,380
Selling, general and administrative   2,061,316     1,145,355
Depreciation   532,279     127,712
Total expenses   10,262,273     5,574,447
           
Earnings from operations   497,182     590,106
           
Other expenses          
Finance expense   767,907     192,188
    767,907     192,188
(Loss) Income before taxes   (270,725 )   397,918
           
Income taxes   -     192,000
           
Net and comprehensive (loss) income   (270,725 )   205,918
           
(Loss) Earnings per share:          
Basic and diluted   (0.001 )   0.001
           

The financial statements, notes to the financial statements and Management's Discussion and Analysis for the three months ending March 31, 2016 are available on SEDAR at www.sedar.com as well as DIG's investor relations website at www.diginc.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

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