Tribe Property Technologies Inc. (TSX-V:TRBE) said it expects to report record revenue from the fourth quarter of 2023, driven by its acquisition of Toronto-based property management firm Meritus Group Management.
The Meritus acquisition, closed in December 2023, positively impacted Tribe's EBITDA margins and cashflows, the company said in a statement.
Founder and CEO Joseph Nakhla told shareholders that the Meritus acquisition represents the type of opportunities that the company is planning to pursue.
“We've built a national footprint across Canada and we are one of only three property management companies to accomplish this feat,” Nakhla said.
Tribe, having completed 12 acquisitions, plans to continue its growth trajectory with several near-term targets and a focus on geographical market expansion, the CEO noted.
Tribe is actively pursuing profitability through operational enhancements and cost reduction initiatives, achieving a 33% year-over-year improvement in adjusted EBITDA in 3Q 2023.
Improving the company's profitability has been a major focus for Tribe in the last few quarters, CFO Angelo Bartolini told investors.
Bartolini will add the role of president to his title.
CEO Nakhla said Bartolini has a “well-established” track record of financial excellence.
“We are thankful for his willingness to take on a broader role and are certain that this strategic decision will unlock a new dimension of his experience and skill set, contributing to the overall efficiency and effectiveness of our operations."
“This opportunity allows me to merge my financial expertise with hands-on leadership to elevate the company's operational efficiency,” Bartolini added.
Tribe has access to a $15 million debt facility from a Tier 1 Canadian Bank, supporting its M&A growth strategy with non-dilutive capital. The company said it remains dedicated to achieving sustainable financial success and expects continued benefits from expense reductions in the future.