AGI Announces Second Quarter 2024 Results & Reaffirms Expectations for a Record Full Year Performance
Second Quarter 2024 Highlights
-
Revenue1 of
$352 million decreased by 10% on a year-over-year (‘YOY’) basis -
Adjusted EBITDA2 of
$68 million decreased by 23% on a YOY basis - Adjusted EBITDA margin %3 of 19.3%
-
Free cash flow of
$65 million on a last twelve months ("LTM") basis -
Net debt leverage ratio3 of 3.1x at
June 30, 2024 vs 3.3x atJune 30, 2023
Outlook
-
Adjusted EBITDA for full year 2024 in the range of
$300 to$310 million 2 with full year 2024 Adjusted EBITDA margins greater than 19.0% -
Order book4 is up 8% YOY to
$651 million as ofJune 30, 2024 , a record level entering the second half of the year - Consistent with previous messaging, we see significant strength in the Commercial segment which is expected to drive strong second half results with several key projects well progressed
- Our product transfer strategy continues to drive incremental growth and is expected to contribute approximately 4% of total revenues in 2024
“Our second quarter results are slightly below our expectations, though our confidence in the full year and a record second half remains strong,” commented
“As we enter the second half of the year, we remain keenly focused on cash flow generation and strengthening leverage ratios through capex discipline and working capital improvements,” added
_____________________________________
1 See “BASIS OF PRESENTATION”.
2 Historical or forward-looking non-IFRS financial measure. See "Non-IFRS and Other Financial Measures".
- Second quarter 2024 loss before income taxes of
- Cash provided by operating activities of
- Year ended
3 Historical or forward-looking non-IFRS ratio. See "Non-IFRS and Other Financial Measures".
4 Supplementary financial measure. See "Non-IFRS and Other Financial Measures".
SUMMARY OF SECOND QUARTER 2024 RESULTS
Revenue by Operating Segment |
Three-months ended |
|||
|
2024 |
2023 |
Change |
Change |
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
Revenue [1] [2] |
||||
Farm |
194,455 |
233,438 |
(38,983) |
(17%) |
Commercial |
157,326 |
156,831 |
495 |
0% |
Total |
351,781 |
390,269 |
(38,488) |
(10%) |
Adjusted EBITDA by Operating Segment |
Three-months ended |
||||
|
2024 |
2023 |
Change |
Change |
|
[thousands of dollars except percentages] |
$ |
$ |
$ |
% |
|
Adjusted EBITDA [2] [3] |
|||||
Farm |
53,236 |
70,086 |
(16,850) |
(24%) |
|
Commercial |
23,248 |
28,939 |
(5,691) |
(20%) |
|
Other [4] |
(8,442) |
(10,851) |
2,409 |
22% |
|
Total |
68,042 |
88,174 |
(20,132) |
(23%) |
|
Adjusted EBITDA Margin % by Operating Segment |
Three-months ended |
||||
|
2024 |
2023 |
Change |
Change |
|
|
% |
% |
basis points |
% |
|
Adjusted EBITDA Margin % [2] [3] |
|||||
Farm |
27.4% |
30.0% |
(265) bps |
(9%) |
|
Commercial |
14.8% |
18.5% |
(368) bps |
(20%) |
|
Other [4] |
(2.4%) |
(2.8%) |
38 bps |
N/A |
|
Consolidated |
19.3% |
22.6% |
(325) bps |
(14%) |
|
Revenue by Geography [1] [2] |
Three-months ended |
|||
[thousands of dollars except percentages] |
2024 |
2023 |
Change |
Change |
$ |
$ |
$ |
% |
|
|
94,364 |
102,836 |
(8,472) |
(8%) |
|
146,366 |
171,431 |
(25,065) |
(15%) |
International |
111,051 |
116,002 |
(4,951) |
(4%) |
Total Revenue |
351,781 |
390,269 |
(38,488) |
(10%) |
[1] |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
|
[2] |
See “BASIS OF PRESENTATION”. |
|
[3] |
Non-IFRS financial measure or non-IFRS ratio. See "Non-IFRS and Other Financial Measures". |
|
[4] |
Included in Other is the corporate office, which is not a reportable segment, and which provides finance, treasury, legal, human resources and other administrative support to the segments and geographical regions, as applicable. The Adjusted EBITDA Margin % for Other is calculated based on total revenue since it does not generate revenue without the segments. |
Order book
The following table presents YOY changes in the Company’s order book[1] as at
|
As at |
|||
[thousands of dollars except percentages] |
2024 |
2023 |
Change |
Change |
$ |
$ |
$ |
% |
|
Order book |
651,366 |
603,216 |
48,150 |
8% |
[1] |
Supplementary financial measure. See "Non-IFRS and Other Financial Measures". |
Farm Segment
Expected softness in our
Commercial Segment
Our Commercial segment anchored our overall second quarter performance, driven by international regions and a steady U.S. market. Our International operations benefited from large-scale projects beginning to contribute, a trend we expect to accelerate into the second half of the year. The Commercial segment margin profile was impacted by a higher proportion of lower margin installation services in
MD&A and Financial Statements
AGI's unaudited consolidated financial statements ("consolidated financial statements") and management’s discussion and analysis (the “MD&A”) for the quarter ended
Conference Call
AGI will hold a conference call on
AGI Company Profile
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in
Further information can be found in the disclosure documents filed by AGI with the securities regulatory authorities, available at www.sedarplus.ca and on AGI's website www.aggrowth.com.
BASIS OF PRESENTATION
The Company has identified its reportable segments as Farm and Commercial, each of which are supported by the corporate office. These segments are strategic business units that offer specific products and services to their respective markets. Certain corporate overheads are allocated to each segment based on revenue as well as applicable cost drivers. Taxes and certain other expenses are managed at a consolidated level and are not allocated to the reportable operating segments. Financial information for the comparative period has been restated to reflect the new presentation.
During the year ended
NON-IFRS AND OTHER FINANCIAL MEASURES
This press release makes reference to certain specified financial measures, including non-IFRS financial measures, non-IFRS ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing our business performance and trends. These specified financial measures are not recognized measures under International Financial Reporting Standards ("IFRS"), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement our financial information reported under IFRS by providing further understanding of our results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
We use the following (i) non-IFRS financial measures: “adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”)”, "free cash flow" and "net debt"; (ii) non-IFRS ratios: “Adjusted EBITDA margin %” and “net debt leverage ratio”; and (iii) supplementary financial measures: “order book”, “revenue by operating segment” and “revenue by geography”; to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS financial measures, non-IFRS ratios and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure or ratio.
We use these specified financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These specified financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our IFRS results and, in the case of non-IFRS financial measures, the accompanying reconciliations to the most directly comparable IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business.
In this press release, we discuss the specified financial measures, including the reasons that we believe that these measures provide useful information regarding our financial condition, results of operations, cash flows and financial position, as applicable, and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures are contained in this press release.
The following is a list of non-IFRS financial measures, non-IFRS ratios and supplementary financial measures that are referenced throughout this press release:
“Adjusted EBITDA” is defined as profit (loss) before income taxes before finance costs, depreciation and amortization, gain or loss on foreign exchange, non-cash share -based compensation expenses, gain or loss on financial instruments, M&A recovery or expenses, transaction, transitional and other costs, Enterprise Resource Planning system transformation costs, net gain or loss on the sale of property, plant & equipment, net gain or loss on assets held for sale, net gain or loss on settlement of lease liability, equipment rework, remediation, accounts receivable reserve (recovery) for the conflict between
“Adjusted EBITDA margin %” is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin % is a non-IFRS ratio because one of its components, Adjusted EBITDA, is a non-IFRS financial measure. Management believes Adjusted EBITDA margin % is a useful measure to assess the performance and cash flow of the Company.
"Free cash flow" is defined as cash provided by operating activities less acquisition of property, plant and equipment and less development and purchase of intangible assets. Free cash flow is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is cash provided by operating activities. Management believes that Free cash flow provides useful information because about the Company's ability to generate available cash that can be used to pursue opportunities to fund ongoing and prospective strategic initiatives, reduce debt, or otherwise enhance shareholder value after reinvesting in necessary capital expenditures required to maintain and grow the Company. Management uses free cash flow to help monitor the performance and efficiency of the Company as well as an input into executive compensation plans, among other uses. See “Free Cash Flow” above for a reconciliation of free cash flow to cash provided by operating activities for the current and comparative periods.
“Order book” is defined as the total value of committed sales orders that have not yet been fulfilled that: (a) have a high certainty of being performed as a result of the existence of a purchase order, an executed contract or work order specifying job scope, value and timing; or (b) has been awarded to the Company or its divisions, as evidenced by an executed binding letter of intent or agreement, describing the general job scope, value and timing of such work, and where the finalization of a formal contract in respect of such work is reasonably assured. Order book is a supplementary financial measure. AGI previously used the term "backlogs" instead of "order book", however there has been no change to the definition or underlying calculation.
"Revenue by Operating Segment" and "Revenue by Geography": The revenue information presented under "Revenue by Operating Segment" and "Revenue by Geography" are supplementary financial measures used to present the Company's revenue by segment and geography.
“Net Debt Leverage Ratio” is a non-IFRS ratio and is defined as net debt divided by Adjusted EBITDA for the last twelve month ("LTM") period. Net debt leverage ratio is a non-IFRS ratio because its components, net debt and Adjusted EBITDA, are non-IFRS financial measures. Management believes net debt leverage ratio is a useful measure to assess AGI’s leverage position.
“Net Debt” is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is long-term debt. Net debt is defined as the sum of long-term debt, convertible unsecured subordinated debentures, senior unsecured subordinated debentures, and lease liabilities less cash and cash equivalents. Management believes that net debt is a useful measure to evaluate AGI's capital structure and to provide a measurement of AGI's total indebtedness. See "
Profit (loss) before income taxes and Adjusted EBITDA
The following table reconciles profit (loss) before income taxes to Adjusted EBITDA.
|
Three-months ended |
Six-months ended |
||
|
||||
[thousands of dollars] |
2024 |
2023 |
2024 |
2023 |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
(7,650) |
18,068 |
(3,801) |
39,694 |
Finance costs |
17,060 |
18,337 |
36,011 |
36,018 |
Depreciation and amortization |
18,306 |
16,431 |
35,451 |
32,471 |
Loss (gain) on foreign exchange [1] |
13,791 |
(6,533) |
19,209 |
(9,150) |
Share-based compensation [2] |
2,768 |
2,038 |
7,184 |
6,306 |
Loss (gain) on financial instruments [3] |
3,812 |
8,184 |
(4,004) |
(5,020) |
Mergers and acquisition expense [4] |
— |
— |
— |
50 |
Transaction, transitional and other costs [5] |
11,929 |
8,795 |
16,379 |
12,674 |
Enterprise Resource Planning ("ERP") system transformation costs [6] |
4,925 |
— |
9,050 |
— |
Net loss (gain) on disposal of property, plant and equipment [1] |
198 |
19 |
323 |
193 |
Net loss (gain) on assets held for sale [7] |
— |
— |
(325) |
25 |
Net loss (gain) on settlement of lease liability |
(188) |
(7) |
(194) |
(7) |
Equipment rework [8] |
— |
4,900 |
— |
4,900 |
Remediation [8] |
— |
15,608 |
— |
15,608 |
Accounts receivable reserve (recovery) for RUK |
— |
1,733 |
(268) |
1,733 |
Impairment charge [9] |
3,091 |
601 |
3,091 |
791 |
Adjusted EBITDA [10] |
68,042 |
88,174 |
118,106 |
136,286 |
[1] |
See “Note 13[e] – Finance expenses (income)” in our consolidated financial statements. |
|
[2] |
The Company’s share-based compensation expense pertains to our equity incentive award plan (“EIAP”) and directors’ deferred compensation plan (“DDCP”). See “Note 12 – Share-based compensation plans” in our consolidated financial statements. |
|
[3] |
See “Equity swap” in our consolidated financial statements. |
|
[4] |
Transaction costs (recoveries) associated with completed and ongoing mergers and acquisitions activities. |
|
[5] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in amounts due to vendors. |
|
[6] |
Expenses incurred in connection with a global multi-year ERP transformation project. |
|
[7] |
See “Note 7 – Assets held for sale” in our consolidated financial statements. |
|
[8] |
See “Remediation costs and equipment rework” in our consolidated financial statements. |
|
[9] |
See “Note 8 – Impairment charge” in our consolidated financial statements. |
|
[10] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment
The following tables reconcile profit (loss) before income taxes to Adjusted EBITDA by operating segment for the applicable periods.
|
Three-months ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [10] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
38,193 |
14,910 |
(60,753) |
(7,650) |
Finance costs |
— |
— |
17,060 |
17,060 |
Depreciation and amortization [1] |
7,889 |
8,581 |
1,836 |
18,306 |
Loss on foreign exchange [2] |
— |
— |
13,791 |
13,791 |
Share-based compensation [3] |
— |
— |
2,768 |
2,768 |
Loss on financial instruments [4] |
— |
— |
3,812 |
3,812 |
Transaction, transitional and other costs [5] |
3,785 |
— |
8,144 |
11,929 |
Enterprise Resource Planning ("ERP") system transformation costs [6] |
— |
— |
4,925 |
4,925 |
Net loss (gain) on disposal of property, plant and equipment [1] |
355 |
(132) |
(25) |
198 |
Net gain on settlement of lease liability |
— |
(188) |
— |
(188) |
Impairment charge [8] |
3,014 |
77 |
— |
3,091 |
Adjusted EBITDA [9] |
53,236 |
23,248 |
(8,442) |
68,042 |
|
Three-months ended |
|||
[thousands of dollars] |
Farm |
Commercial |
Other [10] |
Total |
$ |
$ |
$ |
$ |
|
Profit (loss) before income taxes |
62,764 |
19,777 |
(64,473) |
18,068 |
Finance costs |
— |
— |
18,337 |
18,337 |
Depreciation and amortization [1] |
6,724 |
7,425 |
2,282 |
16,431 |
Gain on foreign exchange [2] |
— |
— |
(6,533) |
(6,533) |
Share-based compensation [3] |
— |
— |
2,038 |
2,038 |
Loss on financial instruments [4] |
— |
— |
8,184 |
8,184 |
Transaction, transitional and other costs [5] |
— |
— |
8,795 |
8,795 |
Net loss (gain) on disposal of property, plant and equipment [1] |
(3) |
11 |
11 |
19 |
Net loss (gain) on settlement of lease liability |
2 |
(9) |
— |
(7) |
Equipment rework [7] |
— |
— |
4,900 |
4,900 |
Remediation [7] |
— |
— |
15,608 |
15,608 |
Accounts receivable reserve for RUK |
— |
1,733 |
— |
1,733 |
Impairment charge [8] |
599 |
2 |
— |
601 |
Adjusted EBITDA [9] |
70,086 |
28,939 |
(10,851) |
88,174 |
[1] |
Allocated based on the segment of the underlying asset’s cash generating unit (“CGU”). |
|
[2] |
See “Note 13[e] – Finance expenses (income)” in our consolidated financial statements. |
|
[3] |
The Company’s share-based compensation expense pertains to our EIAP and DDCP. See “Note 12 – Share-based compensation plans” in our consolidated financial statements. |
|
[4] |
See “Equity swap” in our consolidated financial statements. |
|
[5] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in amounts due to vendors. |
|
[6] |
Expenses incurred in connection with a global multi-year ERP transformation project. |
|
[7] |
See “Remediation and equipment rework” in our consolidated financial statements. |
|
[8] |
See “Note 8 – Impairment charge” in our consolidated financial statements. |
|
[9] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
|
[10] |
Included in Other is the corporate office, which is not a reportable segment, and which provides finance, treasury, legal, human resources and other administrative support to the segments. |
Profit (loss) before income taxes and Adjusted EBITDA for the LTM Periods Ending
The following table reconciles profit (loss) before income taxes to Adjusted EBITDA for the applicable LTM periods.
Last Twelve-months ended |
||
[thousands of dollars] |
2024 |
2023 |
$ |
$ |
|
Profit (loss) before income taxes |
42,573 |
(23,947) |
Finance costs |
73,660 |
69,410 |
Depreciation and amortization |
68,295 |
70,833 |
Loss on foreign exchange [1] |
20,788 |
(1,846) |
Share-based compensation [2] |
13,037 |
16,311 |
Loss (gain) on financial instruments [3] |
(4,353) |
(15,404) |
Mergers and acquisitions recovery [4] |
— |
(761) |
Transaction, transitional and other costs [5] |
30,830 |
43,764 |
Enterprise Resource Planning (“ERP”) system transformation costs [6] |
23,050 |
— |
Net loss on sale of property, plant and equipment [7] |
812 |
236 |
Net loss (gain) on assets held for sale [7] |
(664) |
25 |
Net loss on settlement of lease liability |
(101) |
(6) |
Equipment rework [8] |
3,000 |
11,000 |
Remediation [8] |
600 |
15,608 |
Accounts receivable reserve for RUK |
(350) |
1,733 |
Impairment charge [9] |
4,537 |
76,614 |
Adjusted EBITDA [10] |
275,714 |
263,570 |
[1] |
See “Finance expenses (income)” in our consolidated financial statements and consolidated financial statements for the years ended |
|
[2] |
The Company’s share-based compensation expense pertains to our equity incentive award plan (“EIAP”) and directors’ deferred compensation plan (“DDCP”). |
|
[3] |
See “Equity swap” in our consolidated financial statements. |
|
[4] |
Transaction costs (recoveries) associated with completed and ongoing mergers and acquisitions activities. |
|
[5] |
Includes legal expense, legal provision, transitional costs related to reorganizations and other acquisition related transition costs, as well as the accretion and other movement in amounts due to vendors. |
|
[6] |
Expenses incurred in connection with a global multi-year ERP transformation project. |
|
[7] |
See “Property, plant, and equipment” and “Assets held for sale” in our consolidated financial statements, 2023 Statements and 2022 Statements. |
|
[8] |
See “Remediation costs and equipment rework” in our consolidated financial statements, 2023 Statements and 2022 Statements. |
|
[9] |
Impairment charge related to property, plant and equipment, right-of-use assets, goodwill, intangible assets and assets held for sale. See our consolidated financial statements, 2023 Statements and 2022 Statements. |
|
[10] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
Net Debt
The following table reconciles long term debt to net debt as at
|
Q2/23 |
Q1/24 |
Q2/24 |
[thousands of dollars] |
|
|
|
|
|
||
Long Term Debt |
463,239 |
450,060 |
523,727 |
Convertible Unsecured Subordinated Debentures |
186,771 |
191,756 |
193,479 |
Senior Unsecured Subordinated Debentures |
253,736 |
255,278 |
169,559 |
Leases |
41,164 |
43,361 |
46,054 |
Less: Cash & Cash Equivalents |
70,683 |
89,311 |
85,909 |
Net Debt |
874,227 |
851,144 |
846,910 |
Free Cash Flow
The following table reconciles cash provided by operating activities to free cash flow for the applicable periods.
|
Three-months ended |
|
|||
[thousands of dollars except percentages] |
Last Twelve-months ended |
||||
2024 |
2023 |
2024 |
2023 |
||
$ |
$ |
$ |
$ |
||
Cash provided by operating activities |
32,326 |
13,965 |
118,510 |
163,087 |
|
Less: acquisition of property, plant and equipment |
(7,952) |
(2,888) |
(44,970) |
(32,270) |
|
Less: development and purchase of intangibles |
(2,088) |
(3,351) |
(8,681) |
(20,157) |
|
Free cash flow [1] |
22,286 |
7,726 |
64,859 |
110,660 |
[1] |
This is a non-IFRS measure and is used throughout this press release. See “NON-IFRS AND OTHER FINANCIAL MEASURES” for more information on each non-IFRS measure. |
This press release contains forward-looking statements and information [collectively, "forward-looking information"] within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words “anticipate”, “estimate”, “believe”, “continue”, “could”, “expects”, “intend”, "trend", “plans”, “will”, “may” or similar expressions suggesting future conditions or events or the negative of these terms are generally intended to identify forward-looking information. Forward-looking information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this press release may contain forward-looking information attributed to third party industry sources. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. In particular, the forward-looking information in this press release includes information relating to: our Adjusted EBITDA guidance for full year 2024; our Adjusted EBITDA margin % guidance for full year 2024; that we see significant strength in the Commercial segment portion of the order book which is expected to drive strong second half results with several key projects well progressed; that our product transfer strategy continues to drive incremental growth and is expected to contribute approximately 4% of total revenues in 2024; that we are confident about the acceleration of results into the second half of the year; that we firmly believe that our full year results will clearly demonstrate the value of our differentiated business model which provides significant business resilience through diversification across products, markets, and geographies; that we remain keenly focused on cash flow generation and strengthening leverage ratios through capex discipline and working capital improvements as we enter the second half of the year; that we remain focused on moving our net debt leverage ratio towards the 2.5x level in 2024 which is within our operating plan and our expectations for increasing momentum through the second half of the year; that we continue to gain efficiencies in margins and our working capital position which is a trend we expect to be sustained as we move through our multi-year facility and product consolidation strategy; that as we move into the second half of the year, we see the potential for a rebound in activity in our Farm segment, particularly in the U.S. market, which is supported by growing confidence in the realization of a large crop yield and increasing inventory turnover within our dealer network which can create replenishment demand; that our International commercial segment operations benefitting from large-scale projects beginning to contribute is a trend we expect to accelerate into the second half of the year; and that we anticipate the trend of a strengthening Commercial segment to continue into the second half of the year.
Such forward-looking information reflects our current beliefs and is based on information currently available to us, including certain key expectations and assumptions concerning: anticipated crop yields and production in our market areas; the financial and operating attributes of acquired businesses and the anticipated future performance thereof; the value of acquired businesses and assets and the liabilities assumed (and indemnities provided) by AGI in connection therewith; anticipated financial performance; future debt levels; business prospects and strategies, including the success of our operational excellence initiatives; product and input pricing; the scope, nature, timing and cost of re-supplying certain equipment and re-completing certain work that has previously been supplied or completed pursuant to warranty obligations or otherwise; regulatory developments; tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; currency exchange rates, inflation rates and interest rates; the cost of materials, labour and services and the impact of inflation rates and/or supply chain disruptions and/or labour activity thereon; the impact of competition; the general stability of the economic and regulatory environments in which the Company operates; the timely receipt of any required regulatory and third party approvals; the ability of the Company to obtain and retain qualified staff and services in a timely and cost efficient manner; the amount and timing of the dividends that we expect to pay; the ability of the Company to obtain financing on acceptable terms; the regulatory framework in the jurisdictions in which the Company operates; the ability of the Company to successfully market its products and services; and that a pandemic or other public health emergency will not have a material impact on our business, operations, and financial results going forward. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information. These risks and uncertainties include but are not limited to the following: general economic and business conditions and changes in international, national and local macroeconomic and business conditions, as well as sociopolitical conditions in certain local or regional markets, including as a result of conflicts in the
FINANCIAL OUTLOOK
Also included in this press release are estimates of AGI’s 2024 Adjusted EBITDA and Adjusted EBITDA margin % and target for a net debt leverage ratio towards the 2.5x level in 2024, which are based on, among other things, the various assumptions disclosed in this press release including under "Forward-Looking Information" and including our assumptions regarding the Adjusted EBITDA contribution that AGI anticipates receiving from revenue growth in 2024 in part as a result of the 8% YOY increase in AGI's order book at
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