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  5. LMN: Could you provide your comments on the first quarter results please. [Lumine Group Inc.]
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Q: Could you provide your comments on the first quarter results please.
Asked by Robert on May 02, 2024
5i Research Answer:

LMN reported 48% revenue growth to $141M compared to last year's $95M (-3% organic growth). The meaningful increase in revenue was largely due to a large acquisition previously announced. As a result, the adjusted operating income also grew substantially to $44.5M compared to last year's $21.7M. LMN’s financial statements look confusing due to the accounting treatment for CSU’s preferred converted into common shares. We think investors can consider LMN’s operating result on a few key metrics, including revenue growth, organic growth and adjusted operating income, on a fully diluted share count of 253,104,971. We think LMN did well across most metrics, except organic growth is slightly negative. This is not overly unusual for it, as it is acquisition-driven. Overall, the operating results were decent enough, but we expect the company to improve its organic growth profile going forward, at least to a positive number. But we remain fully comfortable here.