Helix TCS Records 142% First Half Revenue Growth and Improves Cash from Operations by 39%
August 14 2019 - 04:24PM
InvestorsHub NewsWire
Denver, CO -- August
14, 2019 -- InvestorsHub NewsWire -- Helix TCS,
Inc. (https://helixtcs.com/) (OTCQB: HLIX) (the “Company”) today reported
its results for the second quarter of fiscal year 2019. The Company
will be hosting an earnings call today, August 14, 2019, at 4:30pm
Eastern time. Call info can be found at the bottom of this
release.
“Our powerful suite
of critical infrastructure services enables us to maintain a
dominant presence in the expanding market as businesses and
governments alike require more of our service offerings,” said
Zachary L. Venegas, Executive Chairman and CEO of Helix TCS, Inc.
“Our unique ability to add integrated services to our existing and
new clients has proven highly effective through the first half of
2019 and we look forward to capitalizing on this strategy as we
roll out additional mission-critical services to our
platform. We feel that we are still deeply undervalued due to
our focus on execution as opposed to publicity, and are working to
tell the simple truth of our constantly improving business and
strong results.”
Highlights of the second quarter and first half of
2019 include:
- Q2 2019 revenue of
$3.9MM, an increase of 108% compared to the same quarter last
year
- Gross profit for the
quarter was $1.9 million, a 49% gross
margin
- Cash flows from
operations improved in Q2 by $462,000, or 39%, compared to
Q1
- 1H 2019 revenue of
$7.27MM, a 142% increase compared to 1H 2018, and on pace to
materially surpass FY 2018 revenue of
$9.56MM
- Added nearly 500 new
licensed customers via software subsidiary,
BioTrackTHC
- Acquired
California-based security business for expansion of service
offering
- Expanded
international footprint to Europe with customers in the United
Kingdom
- Announced agreement
to acquire Amercanex International
Exchange
- Ranked as the #1
revenue-generating company within the cannabis point of sale
category
- Awarded the Maine
government cannabis traceability contract, which plans to expand
into an adult-use market in 2019
- Awarded the New
Hampshire government cannabis technology
contract
- Current government
contracts now total 10: Illinois, New York, Puerto Rico, New
Mexico, Hawaii, Arkansas, North Dakota, Delaware, Maine, and New
Hampshire
- Received a 2-year
extension for the Hawaii government traceability
contract
- Received a 2-year
extension for the Delaware government traceability
contract
- Deployed the North
Dakota Traceability program on-time and without
interruption
- Expanded the
Illinois Traceability Contract to incorporate the Opioid
Alternative Pilot Program
- Received an award
from the National Cannabis Industry Association (NCIA) for
Excellence in Innovation
For the second
quarter of 2019, the Company generated revenues of $3.9MM, and
gross profit of $1.9MM, for a gross margin of 49%. As cross-selling
via the multiple business lines clearly gained momentum, security
sales for the second quarter of 2019, compared to the same quarter
last year, grew by 17% to $1.52MM, far outpacing any meaningful
competitors, while software sales at BioTrackTHC grew by 44% to
$2.37MM, again outpacing any reporting
competitors.
Conference Call
Info:
We recommend calling
in approximately 10 minutes prior to the start of the call. Please
note that there will be no live Q&A on the
call; questions should be submitted ahead of time or may
be submitted during the call
to ir@helixtcs.com.
Interested parties
can participate in the call using the following
information:
- Attendee Dial
In: (203)
518-9865 or (866) 342-8588
- Passcode or ID: 98167
Sign up for Helix
TCS Investor Updates here. (https://helixtcs.com/sign-up-investor-updates/)
About Helix TCS, Inc.
Helix TCS,
Inc. (OTCQB: HLIX) is a leading provider of critical
infrastructure services, helping owners and operators of licensed
cannabis businesses stay competitive and compliant while mitigating
risk. Through its proprietary technology suite and security
services, Helix TCS provides comprehensive supply chain management,
compliance tools, and asset protection for any license type in any
regulated cannabis market. Helix TCS’ products reach over 2,000
customer locations in 38 states and 6 countries and has processed
over $18 billion in cannabis sales. For more information on Helix
TCS and to sign up for investor updates, visit us
at www.helixtcs.com.
Forward-Looking
Statements
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Actual results might
differ materially from those explicit or implicit in the
forward-looking statements. Important factors that could
cause actual results to differ materially include: our ability to
fund our operations and pay any outstanding debt; fluctuations in
our financial results; general economic risks; the volatile nature
of the market for our products and services and other factors that
could impact our anticipated growth; our ability to manage our
growth; changes in laws and regulations regarding the cannabis
industry and service providers in the cannabis industry; reliance
on key personnel; our ability to compete effectively; security and
other risks associated with our business; intellectual property
risks; and other risk factors set forth from time to time in our
SEC filings. Helix TCS assumes no obligation and does not
intend to update these forward-looking statements, except as
required by law.
Media Contact:
Jeff
Gonring
Helix TCS, Inc.
303-324-1022
press@helixtcs.com
IR Contact:
Scott
Ogur
Helix TCS, Inc.
ir@helixtcs.com