Vertex Resource Group Ltd. Reports Fourth Quarter and Year End 2024 Results
Achieved annual results of $232.2 million of gross revenue and $35.9 million of adjusted EBITDA(1).
SHERWOOD PARK, AB, March 24, 2025 /CNW/ - (TSXV:VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") reports its financial and operational results for the fourth quarter and year ended December 31, 2024. The following should be read in conjunction with the Management Discussion and Analysis ("MD&A") and the audited consolidated financial statements of Vertex for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca.
Vertex completed the fourth quarter consistent with expectations and prior year. Revenue declines compared to prior year are attributable to the completion of pipeline projects, including the TMX pipeline which was heavily subcontracted. Our ability to scale to customer demands without impacting margins has been a key factor in maintaining stability.
Key financial results for the three months and years ended December 31, 2024, and 2023 are as follows:
HIGHLIGHTS
Three Months ended
Years ended
December 31,
December 31,
(in thousands of Canadian Dollars)
2024
2023
2024
2023
Gross revenue
52,888
65,110
232,183
255,237
Less flow through subcontractor costs
408
3,767
2,216
7,978
Net revenue
52,480
61,343
229,967
247,259
Profit margin
12,860
12,356
60,293
61,684
Profit margin %
25 %
20 %
26 %
25 %
Adjusted EBITDA (1)
7,018
7,772
35,889
37,932
Adjusted EBITDA %
13 %
13 %
16 %
15 %
Free cash flow (1)
12,070
4,042
21,185
17,810
Adjusted EBITDA per share, basic and diluted (1)
0.06
0.07
0.32
0.33
Earnings per share, basic and diluted
(0.06)
(0.01)
(0.05)
0.02
(1) See "Non-IFRS Financial Measures"
HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2024
Profit margin increased 5.7% compared to Q4 2024.
Free cash flow1 generated was $12.1 million compared to $4.0 million in Q4 2023.
Reduced loans and borrowings during the quarter by $13.5 million.
HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2024
Profit margin as a % of net revenue increased to 26.5% compared to 24.9% in 2023
Reduced loans and borrowings during the year by $5.7 million, and lease liabilities by $11.0 million.
Free cash flow1 generated was $21.2 million compared to $17.8 million in 2023.
Repurchased common shares using the Normal Course Issuer Bid for consideration of $1.0 million. The total common shares repurchased and cancelled during the NCIB represent 3.2% of the total issued and outstanding common shares of the Company.
Extended the maturity date of the Syndicate Credit Facilities.
OUTLOOK
2024 was a transitional year for Vertex. While revenues declined, margins increased due to our steadfast dedication to driving operational efficiencies. We expect our revenue for 2025 to be slightly less than in 2024, with margins remaining similar. There are no major turnaround projects scheduled for 2025, which have historically been executed in the second and third quarters. Our efforts will be concentrated on sustaining steady activity levels and capitalizing on ongoing maintenance and development opportunities across our operating segments.
Vertex will continue to prioritize providing a return on assets for our shareholders. This includes maximizing the effectiveness of our assets and ensuring that our investments generate strong returns. We are targeting a debt covenant ratio of 2.0x by the end of 2026. This goal aligns with our commitment to maintaining a healthy balance sheet by further reducing our debt levels, enhancing our capabilities for shareholder returns or future acquisitions.
The projected GDP growth of 1.8% for Canada in 2025, supported by increased household spending, business investment, and export growth, aligns with the Bank of Canada's outlook. Inflations is expected to remain close to the Bank of Canada's 2% target. However, the uncertainty around tariffs between the US and Canada is expected to impact businesses and consumers. Vertex is diligently monitoring the unfolding situation to ensure we remain nimble and can maneuver through any potential impacts effectively.
Overall, Vertex is well-positioned to navigate the challenges and opportunities of 2025 and beyond. Our unwavering focus on operational efficiencies, strategic asset management, and proactive response to market dynamics ensures that we remain resilient in the face of uncertainty. By continuously enhancing our service offerings and leveraging our expertise, we are committed to delivering exceptional value to our shareholders and driving sustainable growth. Vertex's strategic vision and adaptability will enable us to capitalize on emerging opportunities and maintain ...
