- IFRS Revenue of $21.0 million
in Q2 increased by 322% over the prior year (non-IFRS revenue of
$15.9 million increased by
218%)
- Non-IFRS adjusted EBITDA of $5.0
million, an improvement of 377%
- Reaffirming our full-year guidance for 2016 of non-IFRS
revenue of between $55 and $60
million and non-IFRS adjusted EBITDA of between $4.2 and $6.2 million
VANCOUVER, Aug. 9, 2016 /CNW/ - UrtheCast Corp.
(TSX:UR) ("UrtheCast" or the "Company") today announces financial
results for the three and six months ended on June 30, 2016.
The Company is pleased to report Q2 non-IFRS revenues of
$15.9 million (IFRS - $21.0 million), a 218% increase over Q2 2015
non-IFRS revenue of $5.0 million
(IFRS $5.0 million). The Company's
non-IFRS adjusted EBITDA was positive $5.0
million in the quarter compared to a loss of $1.8 million in 2015. Non-IFRS earth observation
imagery revenue increased by approximately 130% from Q1 of fiscal
2016, growing from $1.3 million to
$3.1 million. Non-IFRS engineering
and value added services revenue also increased at the same rate
from Q1 of fiscal 2016, growing from $5.5
million to $12.8 million. At
June 30, 2016, the Company had total
cash balances of $31.4 million and
working capital of $28.4 million.
This continued significant year over year growth allows us to
reaffirm our full year 2016 guidance to achieve non-IFRS revenue
between $55 million and $60 million
(representing an IFRS revenue range of $78
million to $83 million) and non-IFRS adjusted EBITDA
guidance between $4.2 million and
$6.2 million in fiscal 2016.
"Our financial results are beginning to reflect both the strong
revenue momentum and significant operating leverage in our
business," explained Wade Larson,
CEO and co-founder. "We continue to see a strong expansion of our
sales pipeline for our current business as well as significant
progress toward realizing our goals for UrtheDaily and
OptiSAR."
Business Highlights
UrtheDaily Update
- The Company announced a strategic partnership with OmniEarth,
Inc. ("OmniEarth") in support of UrtheCast's planned UrtheDaily™
Constellation, expected to be capable of imaging the global
landmass every day at 5 meters GSD. The UrtheCast-OmniEarth
partnership includes collaborative system development, the sharing
of intellectual property, and joint customer marketing activities.
Based in Arlington, Virginia,
OmniEarth is a leading data analytics company and a large consumer
of Earth imagery. OmniEarth specializes in image processing, data
fusion, and predictive analytics, in essence turning big data into
actionable intelligence. One of OmniEarth's leading products is a
tool for water utilities that estimates water demand, but the
company has also served the energy industry, the agricultural
sector, and the U.S. Federal Government.
OptiSAR Progress
- UrtheCast will receive $5.0
million from the Government of Canada's Technology Development Program
("TDP"), as part of a $54 million
contribution program for the development of new satellite
technologies. UrtheCast's contract for the $5.0 million portion of the TDP award is
scheduled to be paid out evenly over five years on a reimbursement
basis as eligible costs are incurred.
- UrtheCast issued a Request for Proposal ("RFP") to U.S.
companies interested in a long-term strategic partnership to serve
the United States Government, further to the Company's announcement
on May 6, 2016. The RFP solicits
prospective U.S. commercial partners with strong U.S. Department of
Defense and Intelligence Community footprints to help deliver data
and services from UrtheCast's planned 8-satellite UrtheDaily™
Constellation and 16-satellite OptiSAR™ Constellation to U.S.
Government user agencies.
- Technically, significant progress has been made on the dual
band, multi-aperture SAR-XL payload and the high-resolution optical
dual mode camera with both completing their preliminary design
reviews. Also, at the OptiSAR mission level, the Mission
Requirements Review was completed and the spacecraft is now under
full development.
UrthePlatform Update
- Starting in April we began delivering Deimos-1 imagery of the
entire contiguous US – cloud-free – to the platform on a monthly
basis. This complements an already existing 5–year archive of
contiguous U.S. imagery on the platform.
- UrtheCast's Deimos-2 data has been incorporated into the
UrthePlatform's offerings, beginning with imagery from the
San Francisco Bay Area, with
additional Deimos-2 data of other areas expected to be added in the
future. UrtheCast expects to soon make Sentinel-2 data, from the
European Space Agency's Copernicus Programme, available for
UrthePlatform users.
SELECTED FINANCIAL INFORMATION
The following table provides selected financial information of
the Company, which was derived from, and should be read in
conjunction with, the unaudited consolidated financial statements
for the three and six months ended June 30,
2016.
|
Three Months ended June
30,
|
Six Months ended June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
20,973
|
$
|
4,975
|
$
|
33,125
|
$
|
8,233
|
Other operating
income
|
|
695
|
|
1,385
|
|
695
|
|
4,065
|
|
|
21,668
|
|
6,360
|
|
33,820
|
|
12,298
|
Operating
costs
|
|
|
|
|
|
|
|
|
Direct costs, selling, general and
administrative expenses
|
|
13,915
|
|
4,992
|
|
29,042
|
|
8,116
|
Research expenditures
|
|
1,493
|
|
3,172
|
|
3,229
|
|
5,102
|
Depreciation and
amortization
|
|
6,392
|
|
102
|
|
12,956
|
|
165
|
Share-based payments
|
|
565
|
|
647
|
|
1,123
|
|
1,351
|
|
|
22,365
|
|
8,913
|
|
46,350
|
|
14,734
|
Operating loss
|
|
(697)
|
|
(2,553)
|
|
(12,530)
|
|
(2,436)
|
Acquisition costs
|
|
-
|
|
(3,030)
|
|
-
|
|
(3,030)
|
Net finance costs
|
|
(580)
|
|
(59)
|
|
(1,101)
|
|
(129)
|
Foreign exchange (loss)
gain
|
|
(210)
|
|
(34)
|
|
(402)
|
|
169
|
Loss before income
taxes
|
|
(1,487)
|
|
(5,676)
|
|
(14,033)
|
|
(5,426)
|
Income tax recovery
|
|
1,210
|
|
-
|
|
2,656
|
|
-
|
Net loss
|
|
(277)
|
|
(5,676)
|
|
(11,377)
|
|
(5,426)
|
Other comprehensive (loss)
income
|
|
(1,498)
|
|
(16)
|
|
(3,457)
|
|
(2)
|
Comprehensive
loss
|
$
|
(1,775)
|
$
|
(5,692)
|
$
|
(14,834)
|
$
|
(5,428)
|
Net loss per share – basic and
diluted
|
$
|
(0.00)
|
$
|
(0.08)
|
$
|
(0.11)
|
$
|
(0.08)
|
|
Three Months ended June
30,
|
Six Months ended June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
NON-IFRS
REVENUE:
|
|
|
|
|
|
|
|
|
Revenue per income
statement
|
$
|
20,973
|
$
|
4,975
|
$
|
33,125
|
$
|
8,233
|
Non-cash revenue
|
|
(5,079)
|
|
-
|
|
(10,413)
|
|
-
|
NON-IFRS
REVENUE
|
|
15,894
|
|
4,975
|
$
|
22,712
|
$
|
8,233
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(277)
|
$
|
(5,676)
|
$
|
(11,377)
|
$
|
(5,426)
|
Add back (subtract):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,392
|
|
102
|
|
12,956
|
|
165
|
Net finance costs
|
|
580
|
|
59
|
|
1,101
|
|
129
|
Income tax recovery
|
|
(1,210)
|
|
-
|
|
(2,656)
|
|
-
|
EBITDA
|
|
5,485
|
|
(5,515)
|
|
24
|
|
(5,132)
|
Non-cash revenue
|
|
(5,079)
|
|
-
|
|
(10,413)
|
|
-
|
Non-cash operating
costs
|
|
3,811
|
|
-
|
|
7,877
|
|
-
|
Share-based payments
expense
|
|
565
|
|
647
|
|
1,123
|
|
1,351
|
Deimos acquisition
costs
|
|
-
|
|
3,030
|
|
-
|
|
3,030
|
Foreign exchange losses
(gains)
|
|
210
|
|
34
|
|
402
|
|
(169)
|
ADJUSTED
EBITDA
|
$
|
4,992
|
$
|
(1,804)
|
$
|
(987)
|
$
|
(920)
|
As previously announced, UrtheCast will host a conference call
regarding its 2016 first quarter financial results at 5:00 p.m. ET (2:00 p.m.
PT) today, August 9, 2016. The
live conference call will be available by calling toll-free at +1
866-696-5910, or by toll call at +1 416-340-2217. The participant
pass code is 4686716.
An archived version of the conference call will be made
available on the Company's investor website
(investors.urthecast.com) following the live conference call.
ABOUT URTHECAST CORP.
UrtheCast Corp. is a Vancouver-based technology company that serves
the rapidly evolving geospatial and geoanalytics markets with a
wide range of information-rich products and services. The Company
currently operates four Earth Observation sensors in space,
including two cameras aboard the International Space Station and
two satellites, Deimos-1 and Deimos-2. Imagery and video data
captured by these sensors is downlinked to ground stations across
the planet and displayed on the UrthePlatform, or distributed
directly to partners and customers. UrtheCast is also developing
and anticipates launching the world's first fully-integrated
constellation of multispectral optical and SAR satellites, called
OptiSAR™, in addition to its proposed UrtheDaily™ constellation,
which the Company believes will together revolutionize monitoring
of our planet with high-quality, medium and high-resolution, and
high-coverage and high-revisit imagery in all weather conditions,
any time of day. Common shares of UrtheCast trade on the Toronto
Stock Exchange as ticker 'UR'.
For more information, visit UrtheCast's website
at www.urthecast.com.
Non-IFRS Financial Measures
The Company prepares its financial statements in accordance
with International Financial Reporting Standards ("IFRS"), as
issued by the International Accounting Standards Board. This
release includes certain non-IFRS financial measures, such as
non-IFRS revenues, EBITDA and adjusted EBITDA. The Company uses
these non-IFRS financial measures as supplemental indicators of its
operating performance and financial position. These measures do not
have any standardized meanings prescribed by IFRS and therefore are
unlikely to be comparable to the calculation of similar measures
used by other companies, and should not be viewed as alternatives
to measures of financial performance calculated in accordance with
IFRS or considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These non-IFRS
financial measures should be read in conjunction with the Company's
financial statements and accompanying MD&A.
Forward Looking Information
This release contains certain information which, as
presented, constitutes "forward-looking information" or
"forward-oriented financial information" within the meaning of
applicable Canadian securities laws. Forward-looking information
involves statements that relate to future events and often
addresses expected future business and financial performance,
containing words such as "anticipate", "believe", "plan",
"estimate", "expect" and "guidance", statements that an action or
event "may", "might", "could" or "will" be taken or occur, or other
similar expressions and includes, but is not limited to, statements
relating to: UrtheCast's expectations with respect its current
sensors and proposed OptiSAR™ and
UrtheDailyTM constellations; financial
guidance for the 2016 financial year; anticipated cash and
financing needs; its plans for and timing of expansion of its
product offering and value-added services, including providing
additional data sources on the UrthePlatform; its future growth and
operations plans, including with respect to the RFP; expectations
regarding its sales funnel; and anticipated trends and challenges
in its business and the markets in which it operates. Such
statements reflect UrtheCast's current views with respect to future
events. Such statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
UrtheCast, are inherently subject to significant uncertainties and
contingencies. Many factors could cause UrtheCast's actual results,
performance or achievements to be materially different from any
future results, performance, or achievements that may be expressed
or implied by such forward-looking statements, including, among
others: any delays or failures in the design, development,
construction, launch and operational commissioning of the proposed
OptiSAR™ or UrtheDailyTM
constellations; the Company being unable to convert the
Memoranda of Understanding in respect of funding of the
OptiSAR™ constellation into binding, definitive
agreements; failures aboard the International Space Station ("ISS")
or the Deimos-1 or Deimos-2 satellites; failure to obtain, or loss
of, regulatory approvals; uncertainties and assumptions in
UrtheCast's revenue forecasts; as well as those factors and
assumptions discussed in UrtheCast's annual information form dated
March 29, 2016, (the "AIF"), which is
available under UrtheCast's SEDAR profile at www.sedar.com.
Forward-looking information is developed based on assumptions about
such risks, uncertainties and other factors set out herein, in the
AIF, and as disclosed from time to time on UrtheCast's SEDAR
profile. UrtheCast undertakes no obligation to update
forward-looking statements except as required by Canadian
securities laws. Readers are cautioned against attributing undue
certainty to forward-looking statements.
SOURCE UrtheCast Corp.