ibex-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

_______________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________to______________

Commission File Number: 001-38442

_______________________

IBEX LIMITED

(Exact name of registrant as specified in its charter)

_______________________


Bermuda						00-0000000
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1717 Pennsylvania Avenue NW, Suite 825 Washington, DC						20006

(Address of principal executive offices)						(Zip Code)

(202) 580-6200

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

_______________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common shares, par value $0.0001

IBEX

Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

The number of common shares outstanding of IBEX LIMITED as of October 31, 2024 was 16,764,808.


		Page No.

	CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS	1



PART I.	FINANCIAL INFORMATION	2

Item 1.	Financial Statements	2

	Consolidated Balance Sheets (unaudited)	3

	Consolidated Statements of Comprehensive Income (unaudited)	4

	Consolidated Statements of Stockholders' Equity (unaudited)	5

	Consolidated Statements of Cash Flows (unaudited)	6

	Notes to the Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	35

PART II.	OTHER INFORMATION	36

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	37

Item 4.	Mine Safety Disclosures	37

Item 5.	Other Information	37

Item 6.	Exhibits	38

	Signatures	39


	September 30, 2024		June 30, 2024
Assets
Current assets
Cash and cash equivalents	$	62,305	$	62,720
Accounts receivable, net	106,043		98,366
Prepaid expenses	8,202		7,712
Due from related parties	256		192
Tax advances and receivables	10,153		9,080
Other current assets	1,571		1,888
Total current assets	188,530		179,958

Non-current assets
Property and equipment, net	33,202		29,862
Operating lease assets	58,806		59,145
Goodwill	11,832		11,832
Deferred tax asset, net	4,414		4,285
Other non-current assets	9,491		8,822
Total non-current assets	117,745		113,946
Total assets	$	306,275	$	293,904

Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued liabilities	$	19,797	$	16,719
Accrued payroll and employee-related liabilities	34,095		30,674
Current deferred revenue	4,873		4,749
Current operating lease liabilities	12,395		12,051
Current maturities of long-term debt	698		660
Due to related parties	25		60
Income taxes payable	5,889		6,083
Total current liabilities	77,772		70,996

Non-current liabilities
Non-current deferred revenue	1,083		1,128
Non-current operating lease liabilities	52,832		53,441
Long-term debt	802		867
Other non-current liabilities	2,695		1,673
Total non-current liabilities	57,412		57,109
Total liabilities	135,184		128,105

Stockholders' equity
Common stock: par value $0.0001, 108,057,967 shares authorized, 16,765,381 and 17,017,476 shares outstanding as of September 30, 2024 and June 30, 2024, respectively	2		2
Additional paid-in capital	210,872		210,200
Treasury stock at cost: 1,849,681 and 1,567,552 shares as of September 30, 2024 and June 30, 2024, respectively	(30,045)		(25,367)
Accumulated other comprehensive loss	(6,146)		(7,913)
Accumulated deficit	(3,592)		(11,123)
Total stockholders' equity	171,091		165,799
Total liabilities and stockholders' equity	$	306,275	$	293,904


	Three Months Ended September 30,
	2024		2023
Revenue	$	129,717	$	124,609

Cost of services (exclusive of depreciation and amortization presented separately below)	90,041		88,196
Selling, general and administrative	26,215		23,040
Depreciation and amortization	4,369		5,042
Total operating expenses	120,625		116,278
Income from operations	9,092		8,331

Interest income	583		586
Interest expense	(162)		(104)
Income before income taxes	9,513		8,813

Provision for income tax expense	(1,982)		(1,388)
Net income	$	7,531	$	7,425

Other comprehensive income
Foreign currency translation adjustments	$	1,388	$	(701)
Unrealized gain / (loss) on cash flow hedging instruments, net of tax	379		(194)
Total other comprehensive income / (loss)	1,767		(895)
Total comprehensive income	$	9,298	$	6,530

Net income per share
Basic	$	0.45	$	0.41
Diluted	$	0.43	$	0.39

Weighted average common shares outstanding
Basic	16,880		18,287
Diluted	17,490		18,898


	Common shares			Treasury Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount		Amount
Balance, June 30, 2023	18,280	$	2	$	(3,682)	$	204,734	$	(6,312)	$	(44,778)	$	149,964
Net income	—	—		—		—		—		7,425		7,425
Foreign currency translation adjustment	—	—		—		—		(701)		—		(701)
Changes in fair value of cash flow hedges	—	—		—		—		(194)		—		(194)

Purchase of treasury shares	(134)	—		(2,044)		—		—		—		(2,044)
Provision for common stock warrants	—	—		—		287		—		—		287
Issuance of common shares	23	—		—		5		—		—		5
Share-based compensation expense	—	—		—		1,297		—		—		1,297
Balance, September 30, 2023	18,169	$	2	$	(5,726)	$	206,323	$	(7,207)	$	(37,353)	$	156,039


	Three Months Ended September 30,
($000s)	2024		2023
Revenue
United States	$	124,648	$	121,184
Other countries	5,069		3,425
Total	$	129,717	$	124,609


	September 30,		June 30,
($000s)	2024		2024
Accounts receivable	$	106,198	$	98,438
Less: Allowance for credit losses	(155)		(72)
Accounts receivable, net	$	106,043	$	98,366


	Three Months Ended September 30,
($000s)	2024		2023
Beginning balance	$	72	$	120
Provision for credit losses	83		11



Ending balance	$	155	$	131


($000s)	Operating Leases		Finance Leases
2025-remainder of year	$	13,381	$	724
2026	16,778		763
2027	16,490		366
2028	14,905		7
2029	12,563		—
Thereafter	10,892		—
Total undiscounted lease payments	85,009		1,860
Less: liability accretion	(19,782)		(360)
Total lease liabilities	$	65,227	$	1,500


Settlement date	Hedged currency	Foreign currency rate	Notional amount ($000s)		Fair Value ($000s)
Foreign currency option contracts - assets
October 8, 2024 through June 19, 2025	PHP	54.00 - 58.00	$	15,248
Fair value as of June 30, 2024					$	—
Fair value as of September 30, 2024					$	218


Settlement date	Hedged currency	Foreign currency rate	Notional amount ($000s)		Fair Value ($000s)
Foreign currency option contracts - liabilities
October 8, 2024 through June 19, 2025	PHP	54.00 - 58.00	$	15,248
Fair value as of June 30, 2024					$	335
Fair value as of September 30, 2024					$	—


	Three Months Ended September 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	7,531	$	7,425
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,369		5,042
Noncash lease expense	3,326		3,225
Warrant contra revenue	—		287
Deferred income tax	(130)		244
Share-based compensation expense	670		848
Allowance of expected credit losses	83		11


Change in assets and liabilities:
Increase in accounts receivable	(7,649)		(3,792)
Increase in prepaid expenses and other current assets	(1,735)		(1,256)
Increase in accounts payable and accrued liabilities	4,574		206
Increase / (decrease) in deferred revenue	79		(372)
Decrease in operating lease liabilities	(3,356)		(3,184)
Net cash inflow from operating activities	7,762		8,684

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(3,630)		(2,052)
Net cash outflow from investing activities	(3,630)		(2,052)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit	60		37
Repayments of line of credit	(60)		(89)
Proceeds from the exercise of options	382		5
Principal payments on finance leases	(171)		(88)
Purchase of treasury shares	(4,807)		(1,832)
Net cash outflow from financing activities	(4,596)		(1,967)
Effects of exchange rate difference on cash and cash equivalents	49		(65)
Net (decrease) / increase in cash and cash equivalents	(415)		4,600
Cash and cash equivalents, beginning	62,720		57,429
Cash and cash equivalents, ending	$	62,305	$	62,029

Supplemental cash flow disclosures
Cash paid for interest	$	162	$	104


	Three Months Ended September 30,
($000s)	2024		2023
Revenue
Onshore (United States)	$	31,099	$	31,536
Offshore (Philippines, Pakistan)	64,436		57,359
Nearshore (Jamaica, Nicaragua, Honduras)	34,182		35,714
Total	$	129,717	$	124,609


	Three Months Ended September 30,
($000s)	2024		2023
Pattern of Revenue recognition
Services transferred over time	$	120,938	$	115,338
Services transferred at a point in time	8,779		9,271
Total	$	129,717	$	124,609


	Three Months Ended September 30,
($000s)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities	$	3,356	$	3,184
Operating cash flows paid for interest portion of finance leases	$	81	$	43
Financing cash flows paid for principal portion of finance leases	$	171	$	88

SEC Form 10-Q filed by IBEX Limited