Mr. Benjamin Urban reports

DIRTT ANNOUNCES PRELIMINARY FOURTH QUARTER AND YEAR-END 2023 FINANCIAL RESULTS

DIRTT Environmental Solutions Ltd. has released preliminary unaudited financial results for the fourth quarter and year ended Dec. 31, 2023. Unless otherwise stated, financial information in this news release is presented in United States dollars.

• Fourth quarter 2023 revenue is expected to be approximately $50.9-million, an increase of $8.5-million or 20 per cent from $42.4-million for the same period in 2022, and a $1.4-million or 3-per-cent increase from the third quarter of 2023.
• Net income after tax for the fourth quarter of 2023 is expected to be approximately $1.0-million compared with a $5.9-million net loss after tax for the same period of 2022.
• Full year 2023 revenue is expected to be approximately $181.9-million, an increase of $9.8-million or 6 per cent from $172.2-million in 2022.
• Net loss after tax for the year ended Dec. 31, 2023, is expected to be approximately $14.6-million compared with $55.0-million net loss after tax for the year ended Dec. 31, 2022.
• Net cash flows provided by operations for the year is expected to be approximately $14.8-million compared with cash used of $44.3-million in the prior year.
• During the fourth quarter, the company reduced debt by early settling $7.8-million of equipment lease liabilities related to the previously announced closure of the company's manufacturing facility in Rock Hill, S.C.
• Liquidity, comprising cash equivalents and available borrowings, increased to $35.0-million at Dec. 31, 2023, compared with $30.3-million at Sept. 30, 2023, and $16.1-million at Dec. 31, 2022.
• On Jan. 9, 2024, the company successfully closed its rights offering for gross proceeds of $30.0-million (Canadian).
• On Feb. 9, 2024, the company extended its RBC facility for an additional year.

Management commentary

Benjamin Urban, chief executive officer, remarked, "We are pleased with our preliminary fourth quarter results and look forward to sharing more information about our quarterly and full year results and 2024 outlook later this month."

Conference call and webcast details

DIRTT will release its 2023 year-end financial results on Wednesday, Feb. 21, 2024, after markets close.

A conference call and webcast for the investment community is scheduled for Feb. 22, 2024, at 8 a.m. MT (10 a.m. ET). The call and webcast will be hosted by Benjamin Urban and Fareeha Khan, chief financial officer.

The call will be webcast live on the company's website.

A webcast replay of the call will be available on DIRTT's website.

About DIRTT Environmental Solutions Ltd.

DIRTT is a leader in industrialized construction. DIRTT's system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, health care, education and public sector markets, DIRTT's system provides total design freedom, and greater certainty in cost, schedule and outcomes. DIRTT's interior construction solutions are designed to be highly flexible and adaptable, enabling organizations to easily reconfigure their spaces as their needs evolve. Headquartered in Calgary, Alta., Canada, DIRTT trades on the Toronto Stock Exchange under the symbol DRT.

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