- Revenues Increased 26% Sequentially Q2 2018 vs. Q1 2018
- Adjusted EBITDA tracking to Break Even with improvement vs Q1
2018
- Significant improvement in working capital
VANCOUVER, Aug. 23, 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 an update on its
operations and strategic activities for the first half of 2018.
Operating Results and Improvements
Consolidated revenues increased 26% sequentially in Q2 2018 from
$2.4M in Q1 2018 to $3M. Gross margins remained strong at 64%,
largely driven by the execution of the Company's strategy to
acquire high-margin innovative technology companies. Recurring
operating expenses were strategically managed to drive Adjusted
EBITDA towards break-even, with improvement over Q1 2018.
The Company has provided first and second quarter 2018 operating
results on a sequential, pro forma basis assuming the acquisitions
of NGRAIN and CSA and the transaction with Flow Capital were in
effect for the full duration of these periods for comparability
purposes.
The Company continued to strengthen its balance sheet, closing
its third equity round in 2018, further diversifying its investor
base and enabling the Company to aggressively pursue its growth
strategy and capitalize on acquisition opportunities in the
market.
Please follow the link below to view CEO Russ McMeekin's interview with Proactive
Investors.
https://youtu.be/ZeYUCQuS0RQ
Strategic Acquisitions and Customer Wins
mCloud announced its transaction with Flow Capital in late
June 2018, for the acquisition of the
Agnity Global ("Agnity") royalty arrangement. During the second
quarter of 2018, the Company also continued steps towards closing
the CSA transaction. Both acquisitions are expected to close before
year end with the cash components of the transactions to be funded
via the exercise of the Company's warrants, which commenced in
July 2018. These acquisitions will
enhance the AssetCare™ platform, further enabling the
Asset-Circle-of-Care™.
mCloud also continued to bolster its business pipeline in Q2
2018, signing large contracts with new customers, securing key
contract renewals and connecting Smart Building customers under its
Master Reseller Agreement with TELUS for Smart Building Solutions
in Canada.
AssetCare™ Technology Progress
In Q2 2018, mCloud began to further integrate Agnity's
technology into the AssetCare™ platform, extending its reach to new
markets and furthering mCloud's capabilities to securely deploy
innovative IoT technologies to its growing customer base. During
the second quarter of 2018, mCloud remotely monitored and inspected
several wind farms and collecting additional blade data and
insights. mCloud's continued enhancements to the AssetCare™
platform have received positive feedback from asset owners in
the USA, Canada and China. The AssetCare™ offering is built in the
cloud and allows the Company to connect to an ever-increasing
number of IoT devices. These remote IoT devices capture and store
data in the cloud where learning algorithms and AI output the
information required to better operate and maintain the assets
under care. The Company expects major progress to continue to be
made on the platform throughout 2018 and 2019.
Progress and Outlook
Revenues in the second quarter began to diversify from its
previously highly concentrated US-based customers with traction now
in Canada and Asia. During the quarter the Company
experienced significant demand and connected assets from existing
customers and locations where mCloud is very well established. New
contracts were signed and early deployments started via the TELUS
Master Reseller Agreement.
"Q2 was another quarter of robust growth in the aggregate
of the technology segments we have been combining to form mCloud's
AssetCare™ Platform." said Russel McMeekin, mCloud President
and CEO. "We remain focused on improving our balance sheet,
ensuring we continue to build the high-margin recurring revenue
base that is driving us towards profitability. Our continued
improvement of working capital via capital from the exercise of
warrants supports our acquisitions plan. We continue to build solid
momentum in all aspects of our business and expect a robust second
half of 2018 which will position us well for continued growth into
2019."
Supplemental Information:
Pro Forma
Statements of Operations
|
|
|
|
Unaudited
|
|
|
|
in Canadian
dollars
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
03/31/2018
|
|
6/30/2018
|
Revenue
|
$2,422,327
|
|
3,046,365
|
Cost of
Sales
|
696,056
|
|
1,086,065
|
Gross
Margin
|
1,726,271
|
|
1,960,300
|
|
|
|
|
Expenses
|
|
|
|
|
Sales and
Marketing
|
$942,380
|
|
1,087,504
|
|
Research and
Development
|
365,785
|
|
432,929
|
|
General and
Administrative
|
777,009
|
|
776,750
|
Total
Expenses
|
$2,085,173
|
|
$2,297,182
|
|
|
|
|
Adjusted
EBITDA
|
(358,902)
|
|
(336,882)
|
|
Note: The above
financial information is presented on a pro forma, unaudited basis,
and includes the revenues and expenses of NGRAIN, CSA and the Flow
Capital transaction 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 includes, but is not limited to,
prospective financial results and business prospects of the Company
and the completion of proposed transactions with CSA and Flow
Capital.
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