Dynamic Technologies Group Reports Third Quarter Results

TORONTO – November 29, 2021 – Dynamic Technologies Group Inc. (TSXV: DTG, OTC:ERILF) ( the “Company”) today reported its unaudited consolidated financial results for the third quarter ended September 30, 2021.  The consolidated financial statements and MD&A have been filed on SEDAR and can be viewed at sedar.com or at dynamictechgroup.com.

“The third quarter was better than plan and within our banking covenants, with our debt being reduced by $15 million year to date.  SkyFly-Soar America opened on July 9^th and its revenue and profitability is also ahead of plan, placing the Company’s option to purchase 50% well into the money.  SkyFly has also provided a significant boost to our re-financing efforts because it has clearly demonstrated how much value can be created by leveraging our considerable IP of developing and partnering in the ownership of world class attractions,” said Guy Nelson, Executive Chairman and Chief Executive Officer. “The pivot in our strategy and the successful refinancing of our Company targeted for early 2022 is designed to result in a more resilient, agile and much more valuable company, with an increased focus on recurring profit from co-ventures and a much-improved profit outlook on a much lower level of sales.”

Summary of third quarter consolidated results

• Cash generated from operating activities was $9.2 million in the third quarter of 2021 and $12.5 million year to date 2021, which allowed the company to reduce its debt by $8 million in the third quarter and $15.0 million year to date.
• Revenues were $9.3 million in the third quarter of 2021, a decrease of $7.3 million from the third quarter 2020.
• Adjusted EBITDA was a loss of $0.8 million in the third quarter, a decrease of $1.2 million from the third quarter 2020.
• Overhead costs decreased $5.3 million, predominantly in the ride division, in the nine months of 2021 as compared to the same period in 2020, getting them in line with where the company wants them to stabilize at in the post pandemic world of new ride sales.
• Net loss from continuing operations was $3.4 million in third quarter 2021 compared to a $2.7 million loss in the third quarter 2020.
• Cash on hand at September 30, 2021 was $2.6 million as compared to $2.4 million as of December 31, 2020.
• Contract Backlog was $93.4 million as of September 30, 2021 with 70% of the backlog (4 contracts) on hold because of client and/or pandemic caused delays.