Mr. Jeff Schellenberg reports

DECISIVE DIVIDEND CORPORATION REPORTS RECORD FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Decisive Dividend Corp. has released its financial results for the three months ended March 31, 2023.

Highlights of the company's financial performance in Q1 2023 include the following:

• Record quarterly consolidated sales in Q1 2023, which increased 65 per cent to $30.9-million, compared with $18.7-million in Q1 2022;
• Generated a record $4.9-million or 33 cents per share in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q1 2023, an increase of 112 per cent relative to $2.3-million or 19 cents per share in Q1 2022;
• Generated net profit of $2.0-million or 13 cents per share in Q1 2023, an increase of 284 per cent or nine cents per share compared with Q1 2022;
• In March, 2023, the company increased its per-share monthly dividend to 3.5 cents from 3.0 cents previously, effective for the April, 2023, dividend payment, which represented a 17-per-cent increase in the annualized dividend.

Selected financial highlights

The attached table provides selected financial highlights of Decisive for the three months ended March 31, 2023. All amounts are expressed in Canadian dollars. The company's unaudited interim condensed consolidated financial statements, as well as its management's discussion and analysis (MD&A), are posted on SEDAR and on Decisive's website.

Q1 2023 highlights:

• Consolidated sales increased 65 per cent to $30.9-million compared with $18.7-million in Q1 2022.
• Consolidated gross profit increased 79 per cent to $11.1-million from $6.2-million in Q1 2022.
• Consolidated gross profit percentages increased to 36 per cent from 33 per cent in Q1 2022.
• Consolidated adjusted EBITDA increased to $4.9-million, up 112 per cent relative to Q1 2022.
• Strong performance across the portfolio of businesses, with the two businesses acquired post Q1 in 2022 contributing meaningfully to the increased quarterly sales in addition to the 22-per-cent aggregate organic revenue growth experienced by the five businesses owned prior to 2022.
• In the finished product segment, the two businesses acquired in 2022, Marketing Impact and ACR; each contributed meaningfully to the overall 88-per-cent increase in segment sales in the quarter. In addition, Blaze King sales increased 12 per cent while Slimline sales decreased 25 per cent compared with Q1 2022.
• In the component manufacturing segment, Unicast sales increased 91 per cent, Hawk sales increased 42 per cent and Northside sales increased 18 per cent compared with Q1 2022.
• Consolidated net profit in the quarter was $2.0-million or 13 cents per share, compared with $500,000 or four cents per share in Q1 2022.
• Consolidated free cash flow increased to $3.0-million, up 132 per cent relative to Q1 2022.

Jeff Schellenberg, chief executive officer of Decisive, noted:

"Recent positive momentum continued for Decisive in Q1, with record-setting quarterly results for the third straight quarter. From a value creation perspective, our per-share adjusted EBITDA and free cash flow were very strong, growing significantly on a year-over-year basis and outpacing our very strong revenue growth, providing evidence of the steps being taken to drive profitability and cash flow in our operating subsidiaries as they continue to experience strong demand. The 3-per-cent growth in gross margin experienced in Q1 2023, compared to Q1 2022, is further evidence of the steps made to drive profitability in our subsidiaries. We view the enhanced performance of our portfolio of businesses as a key driver of our future growth and continue to invest in these businesses to support that growth and increase profitability.

"We also made material progress on our other strategic objectives. First, after the end of the quarter, we completed the acquisition of three businesses that further diversify the overall product offering but also create several potential synergies with existing businesses. We expect that these businesses will each be immediately accretive to our shareholders and are very excited to see these three new businesses contribute to our overall results next quarter. In completing these acquisitions, we acquired approximately $4.8-million in adjusted EBITDA, which in addition to our reported trailing-12-month adjusted EBITDA of $16.3-million and an additional $1.3-million of adjusted EBITDA for the six preacquisition months for ACR, results in $22.4-million of pro forma adjusted EBITDA over the last reported periods.

"With the completion of these three acquisitions, we have completed five acquisitions in 12 months, doubling the number of businesses in our portfolio in that span. These transactions were funded through our acquisition facility and two successful equity raises, including a bought deal financing completed in April, 2023, keeping us in line with our 50/50 debt and equity acquisition funding target. Further, while our focus has been on completing these recently announced deals, we continue to have an active and growing pipeline of acquisition opportunities, and are committed to continue pursuing opportunities to support the many legacy-minded exiting business owners who lack a succession plan and are looking for new owner for their business that will preserve and build on the legacy they have created.

"Second, we were also very pleased to have announced an increase in the dividend in the quarter, on the back of our 2022 and Q1 2023 operating results and demand outlook for our subsidiaries. The monthly dividend was increased to 3.5 cents per common share effective April, 2023, up from the three cents per share per month, which was set in April, 2022, supported by the strong free cash flow per share generated by our subsidiaries.

"The start of 2023 has been eventful and we look forward to providing further updates to our shareholders as we progress through the remainder of the year."

Outlook

Decisive remains focused on continuing to drive performance in line with its overall strategic objectives, including:

• Executing on the growth strategy with the acquisition of five businesses in a 12-month span;
• Building a strong and growing acquisition prospect pipeline;
• Continuing to build upon the strong demand across the portfolio of businesses expected through 2023;
• Optimizing operations, with an emphasis on enhancing margins in the face of broad and steady customer demand trends;
• Increasing production capacity and improving operational efficiency, with an aggregate $2.2-million of growth capital expenditures on manufacturing equipment made over the last 24 months;
• Providing sustainable and growing dividends to shareholders, with the increase of the monthly dividend in May, 2022, to three cents per share and again in April, 2023, to 3.5 cents per share;
• Maintaining balance sheet flexibility with $3.6-million of cash on hand plus $16.6-million of availability on the company's revolving term operating and acquisition facilities;
• Bolstering Decisive's resilience through a variety of economic conditions by aligning the business with supportive shareholders and lenders and further diversifying the portfolio via acquisition and organic growth.

Conference call

Decisive will host a conference call for interested parties on Thursday, May 11, 2023, at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time), to discuss the company's Q1 2023 results. The call will be hosted by Mr. Schellenberg and Rick Torriero, chief financial officer.

Details for those who wish to participate in this conference call are as follows.

Conference call details

Thursday, May 11, 2023, at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time)

Please call 10 minutes ahead of time.

Participant information

Dial-in number -- Canada and the United States (toll-free):  1-800-319-4610

Dial-in number -- international:  1-604-638-5340

Replay information (replay available until June 9, 2023)

Replay number -- Canada and the U.S. (toll-free):  1-800-319-6413

Replay number -- international:  1-604-638-9010

Replay access code:  0160

About Decisive Dividend Corp.

Decisive Dividend is an acquisition-oriented company, focused on opportunities in manufacturing. The company's purpose is to be the soughtout choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired and, through that, creating sustainable and growing shareholder returns. The company uses a disciplined acquisition strategy to identify already profitable, well-established, high-quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

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