Decisive Dividend Corporation Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2024
KELOWNA, BC, March 18, 2025 /CNW/ - Decisive Dividend Corporation (TSXV:DE) (the "Company" or "Decisive") today reported its financial results for the fourth quarter and year ended December 31, 2024.
Recent Operating Highlights
Decisive and its diversified portfolio of manufacturing businesses undertook numerous initiatives throughout the last year that resulted in the strongest quarter of the year in Q4 2024, marking the strongest fourth quarter in the Company's history.
Consolidated sales increased 5% to $37.6 million in Q4 2024 compared to $35.7 million in Q4 2023.
Decisive generated $7.3 million in Adjusted EBITDA* in Q4 2024, an increase of 2% relative to Q4 2023.
Consolidated sales in Q4 2024 were 17% higher than in Q3 2024, 31% higher than in Q2 2024, and 28% higher than in Q1 2024.
Overall Adjusted EBITDA* in Q4 2024 was 30% higher than in Q3 2024, 113% higher than in Q2 2024 and 84% higher than in Q1 2024.
To the date of this press release, 2025 consolidated order levels have outpaced the same periods in both 2023 and 2024, with consolidated sales outpacing 2024 and approaching 2023 levels in those same periods while being based on more balanced contributions from across the Group.
The hearth industry businesses are performing in line with 2024 from an orders and sales perspective, while improved performance across the other businesses has driven the overall comparison to 2023. There are also several new products that will be introduced across the portfolio this year that should further support improved performance in 2025 and beyond.
The steps Decisive and subsidiary management took to work through the challenges faced in 2024, including continued product and customer development, and the investments in growth capital expenditures through the last year have better positioned each of Decisive's businesses to deliver long term organic growth.
Jeff Schellenberg, Chief Executive Officer of Decisive, noted:
"2024 wrapped up with the strongest Q4 in the history of the business. This strong performance was a result of the across-the-board effort of our subsidiaries to add profitable new customers and increase operating efficiency through the calendar year, which we saw beginning to bear fruit in Q3 2024 after a challenging first half of the year. The significant improvement in operating performance illustrates the quality of the portfolio of companies and the capability of their leadership teams to take steps to methodically improve subsidiary business performance.
The strength of our operating results also demonstrated the strength in the free cash flow generation capabilities of our business and our ability to support the current dividend level, with our three-month dividend payout ratio being 55% in Q4 2024. While our full year payout ratio of 96% remained similar to our Q3 TTM payout ratio, we expect to see our per share financial metrics and TTM payout ratio improve in Q1 2025, based upon expected continued improvement in operating results in Q1 2025. Improvement in these results will also result in improved financing capacity and should support improvement in our cost of capital to support further acquisition activity in 2025, which we continue to actively work towards as we nurture and grow our acquisition pipeline and execute on opportunities within it.
As we have previously stated, the diversified nature of the portfolio of businesses we own, the differentiated products these businesses produce, the size of the addressable markets these products are sold into, and the decisions and investments being made by our leadership group to build teams, strategies and processes that support these longer term growth objectives give us confidence in Decisive's business model and the potential for long-term growth within it."
Selected Financial Information:
The following is selected financial information of Decisive for the quarter and year ended December 31, 2024. All amounts are expressed in Canadian dollars. The Company's consolidated financial statements as well as its management's discussion and analysis ("MD&A") are posted on SEDAR+ at www.sedarplus.ca and on Decisive's website (www.decisivedividend.com).
(Stated in thousands of dollars, except per share amounts)
For the three months ended
For the year ended
December 31,
2024
2023
Change
2024
2023
Change
Sales
$
37,564
$
35,668
5 %
$
127,853
$
134,881
-5 %
Gross profit
14,634
13,796
6 %
47,869
52,763
-9 %
Gross profit %
39 %
39 %
37 %
39 %
Adjusted EBITDA*
7,298
7,181
2 %
20,306
25,204
-19 %
Per share basic
0.37
0.38
-3 %
1.05
1.45
-28 %
Profit
1,870
2,424
-23 %
2,011
8,333
-76 %
Per share basic
0.10
0.13
-23 %
0.10
0.48
-79 %
Free cash flow*
5,121
4,772
7 %
11,794
15,626
-25 %
Per share basic
0.26
0.25
4 %
0.61
0.90
-32 %
Free cash flow less maintenance capital*
4,844
4,491
8 %
10,866
14,282
-24 %
Per share basic
0.25
0.24
4 %
0.56
0.82
-32 %
Dividends declared
2,656
2,266
17 %
10,401
7,732
35 %
Per share basic
0.14
0.12
17 %
0.54
0.44
23 %
Dividend payout ratio*
