Nuvei annonce ses résultats pour le deuxième trimestre 2024.

‍Nuveiprésente ses rapports en dollars américains et conformément aux normes internationales d'information financière ("IFRS").

MONTRÉAL, LE 6 AOÛT 2024 - Nuvei Corporation (" Nuvei " ou la " Société ") (Nasdaq : NVEI) (TSX : NVEI), l'entreprise canadienne de fintech, a publié aujourd'hui ses résultats financiers pour le trimestre et le semestre clos le 30 juin 2024.

Faits saillants financiers pour les trois mois terminés le 30 juin 2024 par rapport à 2023 :

• Le volume total(a) a augmenté de 22 %, passant de 50,6 milliards de dollars à 61,7 milliards de dollars ;
• Les recettes ont augmenté de 13 %, passant de 307,0 millions de dollars à 345,5 millions de dollars ;
• Le bénéfice net a diminué de 54 %, passant de 11,6 millions de dollars à 5,3 millions de dollars ;
• Le BAIIA ajusté(b) a augmenté de 6 %, passant de 110,3 millions de dollars à 116,8 millions de dollars ;
• Le bénéfice net ajusté(b) a augmenté de 8 %, passant de 58,1 millions de dollars à 62,6 millions de dollars ;
• Le bénéfice net par action diluée a diminué, passant de 0,07 $ à 0,02 $ ;
• Le bénéfice net ajusté par action diluée(b) a augmenté de 5 %, passant de 0,39 $ à 0,41 $ ;
• L'EBITDA ajusté moins les dépenses en capital(b) a augmenté, passant de 95,9 millions de dollars à 96,4 millions de dollars.

Faits saillants financiers pour les six mois terminés le 30 juin 2024 par rapport à 2023 :

• Le volume total(a) a augmenté de 31 %, passant de 93,0 milliards de dollars à 121,8 milliards de dollars ;
• Les recettes ont augmenté de 21 %, passant de 563,5 millions de dollars à 680,6 millions de dollars ;
• Le bénéfice net a diminué de 84 %, passant de 3,3 millions de dollars à 0,5 million de dollars ;
• Le BAIIA ajusté(b) a augmenté de 12 %, passant de 206,6 millions de dollars à 231,6 millions de dollars ;
• Le bénéfice net ajusté(b) a augmenté de 2 %, passant de 122,5 millions de dollars à 125,1 millions de dollars ;
• La perte nette par action diluée était de 0,02 $, contre un revenu net par action diluée de 0,00 $ ;
• Le bénéfice net ajusté par action diluée(b) est resté stable à 0,83 $ ;
• Le BAIIA ajusté moins les dépenses en capital(b) a augmenté de 9 %, passant de 179,5 millions de dollars à 195,5 millions de dollars ; et,
• Les dividendes en espèces déclarés se sont élevés à 28,2 millions de dollars.

^{(a) Le volume total ne représente pas les revenus gagnés par l'entreprise, mais plutôt la valeur totale en dollars des transactions traitées par les marchands en vertu d'un accord contractuel avec l'entreprise. Voir "Mesures non conformes aux IFRS et autres mesures financières".}

^{(b) L'EBITDA ajusté, la marge d'EBITDA ajusté, le bénéfice net ajusté, le bénéfice net ajusté par action diluée et l'EBITDA ajusté moins les dépenses d'investissement sont des mesures non conformes aux IFRS et des ratios non conformes aux IFRS. Ces mesures ne sont pas reconnues par les IFRS et n'ont pas de signification normalisée prescrite par les IFRS ; elles peuvent donc ne pas être comparables à des mesures similaires présentées par d'autres entreprises. Voir "Mesures non conformes aux IFRS et autres mesures financières".}

Proposition de transaction privée

Comme annoncé précédemment, le 1er avril 2024, la société a conclu un accord d'arrangement définitif en vue de sa privatisation par Advent International (" Advent "), l'un des investisseurs privés mondiaux les plus importants et les plus expérimentés, ainsi qu'un commanditaire de longue date dans l'espace des paiements, aux côtés des actionnaires canadiens existants Philip Fayer, de certains fonds d'investissement gérés par Novacap Management Inc. et de la Caisse de dépôt et placement du Québec, dans le cadre d'une transaction entièrement en espèces qui évalue la société à une valeur d'entreprise d'environ 6,3 milliards de dollars (la " transaction proposée "). Advent acquerra toutes les actions à droit de vote subalterne émises et en circulation et toutes les actions à droit de vote multiple (collectivement les "actions") qui ne sont pas des actions de roulement , pour un prix de 34,00 $ par action, en espèces. Ce prix représente une prime attrayante et importante d'environ 56 % par rapport au cours de clôture des actions à droit de vote subalterne sur le Nasdaq Global Select Market ("Nasdaq") le 15 mars 2024, dernier jour de bourse avant les rapports des médias concernant une transaction potentielle impliquant la société, et une prime d'environ 48 % par rapport au cours moyen pondéré en fonction du volume sur 90 jours par action à droit de vote subalterne à cette date.

La transaction proposée sera mise en œuvre au moyen d'un plan d'arrangement statutaire en vertu de la Loi canadienne sur les sociétés par actions. La transaction proposée a été approuvée par les actionnaires lors d'une assemblée extraordinaire tenue le 18 juin 2024 et a reçu l'approbation du tribunal le 20 juin 2024. La transaction proposée reste soumise aux conditions de clôture habituelles, y compris la réception des principales approbations réglementaires (dont un certain nombre ont été reçues et/ou pour lesquelles la période d'attente a expiré à la date des présentes, plusieurs approbations restant en suspens), n'est soumise à aucune condition de financement et, en supposant la réception en temps voulu de toutes les principales approbations réglementaires requises, devrait être clôturée à la fin de 2024 ou au premier trimestre de 2025.

Après la conclusion de la transaction, il est prévu que les actions à droit de vote subalterne seront radiées de la Bourse de Toronto et du Nasdaq et que Nuvei cessera d'être un émetteur assujetti dans toutes les juridictions canadiennes applicables et désinscrira les actions à droit de vote subalterne auprès de la Securities and Exchange Commission des États-Unis (la "SEC").

Dividende en espèces

Nuvei a annoncé aujourd'hui que son conseil d'administration a autorisé et déclaré un dividende en espèces de 0,10 $ par action à droit de vote subalterne et action à droit de vote multiple, payable le 5 septembre 2024 aux actionnaires inscrits le 20 août 2024. Le montant total du dividende devrait s'élever à environ 14 millions de dollars, qui seront financés par les liquidités existantes de la société.

La société, aux fins de la Loi de l'impôt sur le revenu (Canada) et de toute législation provinciale ou territoriale similaire, désigne le dividende déclaré pour le trimestre clos le 30 juin 2024, et tous les dividendes futurs, comme des dividendes admissibles. La société prévoit en outre de déclarer ces dividendes comme un dividende aux actionnaires américains aux fins de l'impôt fédéral sur le revenu des États-Unis. Sous réserve des limitations applicables, les dividendes versés à certains actionnaires américains qui ne sont pas des sociétés peuvent être éligibles à l'imposition en tant que "revenu de dividende qualifié" et peuvent donc être imposables aux taux applicables aux gains en capital à long terme. Un actionnaire américain devrait consulter son conseiller au sujet de ces dividendes, notamment en ce qui concerne les dispositions relatives aux "dividendes extraordinaires" de l'Internal Revenue Code (US).

The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors, as more fully described under the heading “Forward-Looking Information” of this press release.

Conference Call, Financial Outlook and Growth Targets

In light of the Proposed transaction, Nuvei no longer holds earnings conference calls or provides its financial outlook or growth targets.

À propos de Nuvei

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 50 markets, 150 currencies and 716 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

For more information, visit www.nuvei.com

Mesures non conformes aux IFRS et autres mesures financières

     Nuvei’s condensed interim consolidated financial statements have been prepared in accordance with IFRS applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, as issued by the IASB. The information presented in this press release includes non-IFRS financial measures, non-IFRS financial ratios and supplementary financial measures, namely Adjusted EBITDA, Adjusted net income, Adjusted net income per basic share, Adjusted net income per diluted share, Adjusted EBITDA less capital expenditures and Total volume. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from our perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial statements reported under IFRS. These measures are used to provide investors with additional insight of our operating performance and thus highlight trends in Nuvei’s business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use these non-IFRS and other financial measures in the evaluation of issuers. We also use these measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. We believe these measures are important additional measures of our performance, primarily because they and similar measures are used widely among others in the payment technology industry as a means of evaluating a company’s underlying operating performance.

Non-IFRS Financial Measures

     Adjusted EBITDA: We use Adjusted EBITDA as a means to evaluate operating performance, by eliminating the impact of non-operational or non-cash items. Adjusted EBITDA is defined as net income (loss) before finance costs (recovery), finance income, depreciation and amortization, income tax expense, acquisition, integration and severance costs, share-based payments and related payroll taxes, loss (gain) on foreign currency exchange, and legal settlement and other.

     Adjusted EBITDA less capital expenditures: We use Adjusted EBITDA less capital expenditures (which we define as acquisition of intangible assets and property and equipment) as a supplementary indicator of our operating performance.

     Adjusted net income: We use Adjusted net income as an indicator of business performance and profitability with our current tax and capital structure. Adjusted net income is defined as net income (loss) before acquisition, integration and severance costs, share-based payments and related payroll taxes, loss (gain) on foreign currency exchange, amortization of acquisition-related intangible assets, and the related income tax expense or recovery for these items. Adjusted net income also excludes change in redemption value of liability-classified common and preferred shares, change in fair value of share repurchase liability and accelerated amortization of deferred financing fees and legal settlement and other.

Non-IFRS Financial Ratios

     Adjusted net income per basic share and per diluted share: We use Adjusted net income per basic share and per diluted share as an indicator of performance and profitability of our business on a per share basis. Adjusted net income per basic share and per diluted share means Adjusted net income less net income attributable to non-controlling interest divided by the basic and diluted weighted average number of common shares outstanding for the period, respectively. The number of share-based awards used in the diluted weighted average number of common shares outstanding in the Adjusted net income per diluted share calculation is determined using the treasury stock method as permitted under IFRS.

Mesures financières supplémentaires

     We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our key performance indicators may be calculated in a manner that differs from similar key performance indicators used by other companies.

     Total volume: We believe Total volume is an indicator of performance of our business. Total volume and similar measures are used widely among others in the payments industry as a means of evaluating a company’s performance. We define Total volume as the total dollar value of transactions processed in the period by customers under contractual agreement with us. Total volume does not represent revenue earned by us. Total volume includes acquiring volume, where we are in the flow of funds in the settlement transaction cycle, gateway/technology volume, where we provide our gateway/technology services but are not in the flow of funds in the settlement transaction cycle, as well as the total dollar value of transactions processed relating to APMs and payouts. Since our revenue is primarily sales volume and transaction-based, generated from merchants’ daily sales and through various fees for value-added services provided to our customers, fluctuations in Total volume will generally impact our revenue.

Informations prévisionnelles

     This press release contains “forward-looking information” and “forward-looking statements” (collectively, “Forward-looking information”) within the meaning of applicable securities laws. Such forward-looking information may include, without limitation, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. This forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate, expectations regarding industry trends and the size and growth rates of addressable markets, our business plans and growth strategies, addressable market opportunity for our solutions, expectations regarding growth and cross-selling opportunities and intention to capture an increasing share of addressable markets, the costs and success of our sales and marketing efforts, intentions to expand existing relationships, further penetrate verticals, enter new geographical markets, expand into and further increase penetration of international markets, intentions to selectively pursue and successfully integrate acquisitions, and expected acquisition outcomes, cost savings, synergies and benefits, including with respect to the acquisition of Paya, future investments in our business and anticipated capital expenditures, our intention to continuously innovate, differentiate and enhance our platform and solutions, expected pace of ongoing legislation of regulated activities and industries, our competitive strengths and competitive position in our industry, and expectations regarding our revenue, revenue mix and the revenue generation potential of our solutions and expectations regarding our margins and future profitability, as well as statements regarding the Proposed transaction with Advent International L.P., alongside existing Canadian shareholders Philip Fayer, certain investment funds managed by Novacap Management Inc., and Caisse de dépôt et placement du Québec, including the proposed timing and various steps contemplated in respect of the transaction and statements regarding the plans, objectives, and intentions of Philip Fayer, certain investment funds managed by Novacap Management Inc., Caisse de dépôt et placement du Québec or Advent, are forward-looking information. Economic and geopolitical uncertainties, including regional conflicts and wars, including potential impacts of sanctions, may also heighten the impact of certain factors described herein.

     In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.

     Forward-looking information is based on management's beliefs and assumptions and on information currently available to management, regarding, among other things, assumptions regarding foreign exchange rate, competition, political environment and economic performance of each region where the Company operates and general economic conditions and the competitive environment within our industry, including the following assumptions: (a) the Company will continue to effectively execute against its key strategic growth priorities, without any material adverse impact from macroeconomic or geopolitical headwinds on its or its customers' business, financial condition, financial performance, liquidity or any significant reduction in demand for its products and services, (b) the economic conditions in our core markets, geographies and verticals, including resulting consumer spending and employment, remaining at close to current levels, (c) assumptions as to foreign exchange rates and interest rates, including inflation, (d) the Company's continued ability to manage its growth effectively, (e) the Company's ability to continue to attract and retain key talent and personnel required to achieve its plans and strategies, including sales, marketing, support and product and technology operations, in each case both domestically and internationally, (f) the Company’s ability to successfully identify, complete, integrate and realize the expected benefits of past and recent acquisitions and manage the associated risks, as well as future acquisitions, (g) the absence of adverse changes in legislative or regulatory matters, (h) the Company’s continued ability to upskill and modify its compliance capabilities as regulations change or as the Company enters new markets or offers new products or services, (i) the Company’s continued ability to access liquidity and capital resources, including its ability to secure debt or equity financing on satisfactory terms, and (j) the absence of adverse changes in current tax laws. Unless otherwise indicated, forward-looking information does not give effect to the potential impact of any mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information.

     Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors described in greater detail under “Risk Factors” of the Company's annual information form ("AIF") and the “Risk Factor’s” in the Company’s management’s discussion and analysis of financial condition and results of operations for the three months ended June 30, 2024 (“MD&A”), such as: risks relating to our business, industry and overall economic uncertainty; the rapid developments and change in our industry; substantial competition both within our industry and from other payments providers; challenges implementing our growth strategy; challenges to expand our product portfolio and market reach; changes in foreign currency exchange rates, interest rates, consumer spending and other macroeconomic factors affecting our customers and our results of operations; challenges in expanding into new geographic regions internationally and continuing our growth within our markets; challenges in retaining existing customers, increasing sales to existing customers and attracting new customers; reliance on third-party partners to distribute some of our products and services; risks associated with future acquisitions, partnerships or joint-ventures; challenges related to economic and political conditions, business cycles and credit risks of our customers, such as wars like the Russia-Ukraine and Middle East conflicts and related economic sanctions; the occurrence of a natural disaster, a widespread health epidemic or pandemic or other similar events; history of net losses and additional significant investments in our business; our level of indebtedness; challenges to secure financing on favorable terms or at all; difficulty to maintain the same rate of revenue growth as our business matures and to evaluate our future prospects; inflation; challenges related to a significant number of our customers being small and medium businesses ("SMBs"); a certain degree of concentration in our customer base and customer sectors; compliance with the requirements of payment networks; reliance on, and compliance with, the requirements of acquiring banks and payment networks; challenges related to the reimbursement of chargebacks from our customers; financial liability related to the inability of our customers (merchants) to fulfill their requirements; our bank accounts being located in multiple territories and relying on banking partners to maintain those accounts; decline in the use of electronic payment methods; loss of key personnel or difficulties hiring qualified personnel; deterioration in relationships with our employees; impairment of a significant portion of intangible assets and goodwill; increasing fees from payment networks; misappropriation of end-user transaction funds by our employees; frauds by customers, their customers or others; coverage of our insurance policies; the degree of effectiveness of our risk management policies and procedures in mitigating our risk exposure; the integration of a variety of operating systems, software, hardware, web browsers and networks in our services; the costs and effects of pending and future litigation; various claims such as wrongful hiring of an employee from a competitor, wrongful use of confidential information of third parties by our employees, consultants or independent contractors or wrongful use of trade secrets by our employees of their former employers; deterioration in the quality of the products and services offered; managing our growth effectively; challenges from seasonal fluctuations on our operating results; changes in accounting standards; estimates and assumptions in the application of accounting policies; risks associated with less than full control rights of some of our subsidiaries and investments; challenges related to our holding company structure; impacts of climate change; development of AI and its integration in our operations, as well as risks relating to intellectual property and technology, risks related to data security incidents, including cyber-attacks, computer viruses, or otherwise which may result in a disruption of services or liability exposure; challenges regarding regulatory compliance in the jurisdictions in which we operate, due to complex, conflicting and evolving local laws and regulations and legal proceedings and risks relating to our Subordinate Voting Shares. These risks and uncertainties further include (but are not limited to) as concerns the Proposed transaction with Advent, the failure of the parties to obtain the necessary regulatory approvals or to otherwise satisfy the conditions to the completion of the transaction, failure of the parties to obtain such approvals or satisfy such conditions in a timely manner, significant transaction costs or unknown liabilities, failure to realize the expected benefits of the transaction, and general economic conditions. Failure to obtain the necessary shareholder, regulatory and court approvals, or the failure of the parties to otherwise satisfy the conditions to the completion of the transaction or to complete the transaction, may result in the transaction not being completed on the proposed terms, or at all. In addition, if the transaction is not completed, and the Company continues as a publicly-traded entity, there are risks that the announcement of the Proposed transaction and the dedication of substantial resources of the Company to the completion of the transaction could have an impact on its business and strategic relationships (including with future and prospective employees, customers, suppliers and partners), operating results and activities in general, and could have a material adverse effect on its current and future operations, financial condition and prospects. Furthermore, in certain circumstances, the Company may be required to pay a termination fee pursuant to the terms of the arrangement agreement which could have a material adverse effect on its financial position and results of operations and its ability to fund growth prospects and current operations.

     Our dividend policy is at the discretion of the Board. Any future determination to declare cash dividends on our securities will be made at the discretion of our Board, subject to applicable Canadian laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions (including covenants contained in our credit facilities), general business conditions and other factors that our Board may deem relevant. Further, our ability to pay dividends, as well as make share repurchases, will be subject to applicable laws and contractual restrictions contained in the instruments governing our indebtedness, including our credit facility. Any of the foregoing may have the result of restricting future dividends or share repurchases.

     Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein represents our expectations as of the date hereof or as of the date it is otherwise stated to be made, as applicable, and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

Contact :

Investors

Chris Mammone, Head of Investor Relations

IR@nuvei.com

^{(a) These expenses relate to:}

^{(i) professional, legal, consulting, accounting and other fees and expenses related to our acquisition and financing activities, including the expenses related to the Proposed transaction. For the three months and six months ended June 30, 2024, these expenses were $4.2 million and $14.5 million ($1.1 million and $19.6 million for the three months and six months ended June 30, 2023). These costs are presented in the professional fees line item of selling, general and administrative expenses.}

^{(ii) acquisition-related compensation was $0.6 million and $1.7  million for the three months and six months ended June 30, 2024 and $0.7 million  and $2.8    million for the three months and six months ended June 30, 2023. These costs are presented in the employee compensation line item of selling, general and administrative expenses.}

^{(iii) change in deferred purchase consideration for previously acquired businesses.  No amount was recognized for the three months and six months ended June 30, 2024 and 2023. These amounts are presented in the contingent consideration adjustment line item of selling, general and administrative expenses.}

^{(iv) severance and integration expenses, which were $0.2 million  and  $0.5  million for the three months and six months ended June 30, 2024 ($4.8 million and $9.5 million for three months and six months ended June 30, 2023). These expenses are presented in selling, general and administrative expenses and cost of revenue.}

^{(b) These expenses are recognized in connection with stock options and other awards issued under share-based plans as well as related payroll taxes that are directly attributable to share-based payments. For the three months and six months ended June 30, 2024, the expenses consisted of non-cash share-based payments of $20.6 million and $50.4 million ($35.9 million and $71.4 million for the three months and six months ended June 30, 2023), $4.1 million and $4.3 million for related payroll taxes ($0.4 million and $0.9 million for the three months and six months ended June 30, 2023),}

^{(c) This primarily represents legal settlements and associated legal costs, as well as non-cash gains, losses and provisions and certain other costs. These costs are presented in selling, general and administrative expenses. For the six months ended June 30, 2024, the gain consisted mainly of a gain on business combination of $4.0 million.}

^{(a) This line item relates to amortization expense taken on intangible assets created from the purchase price adjustment process on acquired companies and businesses and resulting from a change in control of the Company.}

^{(b) These expenses relate to:}

^{(i) professional, legal, consulting, accounting and other fees and expenses related to our acquisition and financing activities, including the expenses related to the Proposed transaction. For the three months and six months ended June 30, 2024, these expenses were $4.2 million and $14.5  million ($1.1 million and $19.6 million for the three months and six months ended June 30, 2023). These costs are presented in the professional fees line item of selling, general and administrative expenses.}

^{(ii)   acquisition-related compensation was $0.6 million and $1.7  million for the three months and six months ended June 30, 2024 and $0.7 million and $2.8 million for the three months and six months ended June 30, 2023. These costs are presented in the employee compensation line item of selling, general and administrative expenses.}

^{(iii)  change in deferred purchase consideration for previously acquired businesses.  No amount was recognized for the three months and six months ended June 30, 2024 and 2023. These amounts are presented in the contingent consideration adjustment line item of selling, general and administrative expenses.}

^{(iv)  severance and integration expenses, which were $0.2 million and $0.5 million for the three months and six months ended June 30, 2024 ($4.8 million and $9.5 million for the three months and six months ended June 30, 2023). These expenses are presented in selling, general and administrative expenses and cost of revenue.}  

^{(c) These expenses are recognized in connection with stock options and other awards issued under share-based plans as well as related payroll taxes that are directly attributable to share-based payments. For the three months and six months ended June 30, 2024, the expenses consisted of non-cash share-based payments of $20.6 million and $50.4 million ($35.9 million and $71.4 million for the three months and six months ended June 30, 2023), $4.1 million and $4.3 million for related payroll taxes ($0.4 million and $0.9 million for the three months and six months ended June 30, 2023).}

^{(d) This primarily represents legal settlements and associated legal costs, as well as non-cash gains, losses and provisions and certain other costs. These costs are presented in selling, general and administrative expenses. For the three months ended June 30, 2024, the gain consisted mainly of a gain on business combination of $4.0 million.}

^{(e) This line item reflects income tax expense on taxable adjustments using the tax rate of the applicable jurisdiction.}

^{(f) The number of share-based awards used in the diluted weighted average number of common shares outstanding in the Adjusted net income per diluted share calculation is determined using the treasury stock method as permitted under IFRS.}

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^{[1] Philip Fayer, Novacap and CDPQ (together with entities they control directly or indirectly, collectively, the "Rollover Shareholders") have agreed to roll approximately 95%, 65% and 75%, respectively, of their Shares (the "Rollover Shares") and are expected to receive in aggregate approximately US$560 million in cash for the Shares sold on closing. Philip Fayer, Novacap and CDPQ are expected to indirectly own or control approximately 24%, 18% and 12%, respectively, of the equity in the resulting private company. Percentages and amount of expected cash proceeds are based on current assumed cash position and are subject to change as a result of cash generated before closing.}