- Doubled Connected Assets under AssetCare from 6,000 to
12,600
- Adjusted EBITDA Near Break Even in Q1 2018
- Revenues Increased 25% Sequentially Q1 2018 vs. Q4 2017
- Gross Margin Increased 63% Sequentially Q1 2018 vs. Q4
2017
- Total Liabilities Lower by $4.1
million Sequentially Q3 2017 vs. Q1 2018
- Cash Position Significantly Improved from $430k at 12.31.17
to $1.8 million at 3.31.18
VANCOUVER, May 1, 2018 /CNW/ - Universal mCloud Corp.
(TSX-V: MCLD) ("mCloud" or the "Company"), a leading provider of
Artificial Intelligence and Analytics ("AI&A") and
IoT-connected asset care technology, has provided a progress report
on the operations and strategic activities of the Company over the
past six months since its public initiation on October 13, 2017.
Strategic Acquisitions and Customer Wins:
Since October 2017, mCloud has
completed three strategic acquisitions providing the technology and
intellectual property foundation for mCloud's Artificial
Intelligence and Analytics ("AI&A") AssetCare™ Cloud. These
previously announced transactions consist of Norwin Energy Inc.
(wind IP), Endurance Wind (last License), and nGrain (Artificial
Intelligence and Augmented Reality IP). In addition, mCloud has
entered into a letter of intent to acquire CSA Inc (3D Software and
High Accuracy Scanning IP). These acquisitions will
supplement the AssetCare platform enabling the
Asset-circle-of-care.
Additionally, in Q4 2017, mCloud signed a strategic Master
Reseller Agreement with TELUS for Smart Building Solutions in
Canada. In this agreement, Telus
and mCloud will target the approximately 440,000 buildings, as
estimated by Statistics Canada, with high-energy intensity use
profiles and rising energy rates. The Company also signed an IoT
off balance sheet fund arrangement with Commercial Funding Group
(CGF) of up to $50M. This is in place
to provide customers with "easy decision" IoT retrofit and
AssetCare connection leading to a worry-free energy optimization
purchased on a subscription fee priced at a fraction of the
delivered savings.
Over the last six months, mCloud entered into strategic
relationships with Cypress Envirosystems and Lunera Inc to expand
its IoT technology portfolio. Both companies' offerings further
maximize the smart building footprint that mCloud is able to
service. Cypress Envirosystems provides pneumatic thermostats that
convert large and relatively dated campuses and facilities into
digital and smart, connected buildings. Lunera Inc complements this
offering as it further enhances such buildings with its smart
lighting products.
mCloud now has over 30 well known corporate brands with
approximately 5,000 locations and facilities connected. New
customer brands and multiple locations with numerous assets are now
being engaged on a weekly basis both in the USA and Canada. mCloud's software solutions continue
to be extensively used by existing customers of the Company. This
provides a very strong operating foundation of "sticky" repeat and
recurring revenues.
Operating Results and Improvements
The Company has provided fourth quarter 2017 and first quarter
2018 operating results on a sequential, pro forma basis assuming
the acquisitions of NGrain and CSA were in effect during these
periods for comparability purposes. Co-Founder, CIO and CFO
Michael A. Sicuro stated: "Our
balance sheet has improved significantly since our public
initiation last fall through the intelligent use of our capital
proceeds, the successful execution of a disciplined process in our
acquisitions activities and driving hard on the most important
metric in our business – connected assets, which we have more
than doubled in the last six months. This keen focus on
connected assets and acquisitions, and our strategic use of
operating capital, has also resulted in the improvements in our
P&L during the past six months and achieving near break even in
the most recent quarter."
AssetCare Technology Progress
Over the past six months, mCloud targeted investments in
AssetCare technology, developing a solid common architecture and
platform that supports the vision and goals of the Company.
The mCloud offering is built in the cloud, it allows the company to
connect to an ever-increasing number of IoT devices. The company
captures and stores the information in the cloud where learning
algorithms and AI output the information required to better operate
and maintain the assets under care. "What really sets
AssetCare apart from competition is the embedded deep knowledge of
the assets. This knowledge has and will continue to grow as
more assets are connected and data stored for longer periods of
time", said Co-Founder and CGO Costantino Lanza.
Progress and Outlook
Revenues in the first six months of 2017 were primarily from
US-based customers secured and expanded since joining mCloud.
During these six months we saw significant demand and connected
assets from existing customers and locations where mCloud is very
well established. During the same period, mCloud launched targeted
sales initiatives via its strategic partnership with TELUS. There
are now coast to coast sales activities with strategic customers
throughout Canada. mCloud has
connected 105 wind turbines in the last six months. In Q2 of 2018,
mCloud expects that drone data will be collected on a number of
wind turbines in the USA and
Canada and will form the basis for
additional connected wind turbines with new functionality around
AssetCare AI Blade Inspection. In April, mCloud announced a
partnership with SCN Ltd in China
to target it's strategically captive >300M square feet of western and Japanese branded
high-end retail and hotel facilities for AssetCare.
Co-Founder and CEO Russ McMeekin
stated, "Over the past six months, we have built the technology
base, resources and leadership combined with partnerships and
market positioning to make mCloud a leading "pure play" publicly
listed company in the global industrial Artificial Intelligence and
Analytics (AI&A) space. We expect the kind of growth and
performance we executed in the last six months to continue and to
be sustainable on a go forward basis."
Mr. McMeekin added, "The mCloud leadership team and founders
have been major players in the industrial internet evolution for
the last three decades working in and with Fortune 500 companies in
these industries."
Supplemental Information:
Pro Forma
Statements of Operations
(Unaudited)
Unconsolidated
|
|
|
|
|
in Canadian
dollars
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
12/31/2017
|
|
3/31/2018
|
Revenue
|
|
$1,100,322
|
|
$1,373,070
|
Cost of
Sales
|
|
436,081
|
|
289,262
|
Gross
Margin
|
|
664,242
|
|
1,083,808
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Sales, Marketing and
Customer Support
|
|
$456,374
|
|
$585,923
|
|
Research and
Development
|
|
156,180
|
|
195,374
|
|
General and
Administrative
|
|
479,218
|
|
470,324
|
Total
Expenses
|
|
$1,091,772
|
|
$1,251,621
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(427,530)
|
|
(167,813)
|
|
|
|
|
|
Other
Income/(Expense), net
|
|
(89,627)
|
|
(69,341)
|
|
|
|
|
|
Adjusted Net
Loss
|
|
($517,157)
|
|
($237,155)
|
|
Note: The above
financial information is presented on a pro forma, unconsolidated,
unaudited basis, and includes the assets, liabilities, revenues and
expenses of both NGRAIN and CSA as though these acquisitions had
been completed and in effect for the periods presented for
comparability purposes. This information also excludes certain
expenses that are non-recurring in nature and are not reflective of
the ongoing operation of the Company.
|
Pro Forma
Condensed Balance Sheets
(Unaudited)
Unconsolidated
|
|
|
|
|
|
|
in Canadian
dollars
|
|
|
|
|
|
|
|
|
As of Sept. 30,
2017
|
|
As of Dec. 31,
2017
|
|
As of Mar 31,
2018
|
Assets
|
|
|
|
|
|
|
|
Cash
|
|
$491,218
|
|
$431,427
|
|
$1,799,751
|
|
Accounts
Receivable
|
|
787,524
|
|
735,591
|
|
767,143
|
|
Inventory
|
|
96,205
|
|
-
|
|
-
|
|
Other Current
assets
|
|
1,566,879
|
|
428,465
|
|
188,350
|
Total Current
Assets
|
|
$2,941,826
|
|
$1,595,482
|
|
$2,755,243
|
|
|
|
|
|
|
|
|
Goodwill and
Intangibles
|
|
3,214,761
|
|
1,984,895
|
|
1,855,634
|
|
Other Long Term
Assets
|
|
7,076,272
|
|
7,066,538
|
|
7,268,204
|
Total Non-Current
Assets
|
|
$10,291,033
|
|
$9,051,433
|
|
$9,123,839
|
Total
Assets
|
|
$13,232,859
|
|
$10,646,915
|
|
$11,879,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Trade Payables and
Accrued Expenses
|
|
$3,225,688
|
|
$2,468,586
|
|
$1,709,601
|
|
Business Acquisition
Payable
|
|
1,526,184
|
|
1,563,044
|
|
1,462,159
|
|
Other Current
Liabilities
|
|
1,944,680
|
|
686,523
|
|
494,599
|
Total Current
Liabilities
|
|
$6,696,551
|
|
$4,718,153
|
|
$3,666,358
|
Long Term
Liabilities
|
|
1,321,038
|
|
265,949
|
|
271,798
|
Total
Liabilities
|
|
$8,017,589
|
|
$4,984,102
|
|
$3,938,156
|
Shareholders'
Equity
|
|
5,215,270
|
|
5,662,813
|
|
7,940,926
|
Total Liabilities and
Shareholders' Equity
|
|
$13,232,859
|
|
$10,646,915
|
|
$11,879,082
|
|
Note: The above
financial information is presented on a pro forma, unconsolidated,
unaudited basis, and includes the assets, liabilities, revenues and
expenses of both NGRAIN and CSA as though these acquisitions had
been completed and in effect for the periods presented for
comparability purposes. This information also excludes certain
expenses that are non-recurring in nature and are not reflective of
the ongoing operation of the Company.
|
About Universal mCloud Corp.
Universal mCloud is headquartered in Vancouver, BC with technology and operations
centers in San Francisco, CA and
Bristol, PA. mCloud is an
Artificial Intelligence and Analytics , IoT connected asset
care cloud solution company utilizing connected IoT devices, AI,
deep energy analytics, secure mobile and 3D technologies that rally
all asset stakeholders around an Asset-Circle-of-Care™, providing
complete real-time and historical data coupled with guidance and
advice based on deep analytics and diagnostics resulting in optimal
performance and care of critical equipment. It's all about the
asset. The powerful and secure AssetCare™ environment is
accessible everywhere, 24/7 through standard mobile devices,
ruggedized headsets, and web browsers. For more information, visit
www.mCloudCorp.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company's control. Generally, such forward-looking
information or forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or may contain statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information contained herein may include, but is not limited to,
information concerning the ability to expand the asset base of the
Company and the future business prospects and potential revenue of
the Company.
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to a number of risks including, without limitation, the
risks discussed under the heading "Risk Factors" on pages 29 to 46
of the Company's filing statement dated October 5, 2017. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information and forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Universal-mCloud Corp