- Q1 2019 revenues grew to C$2.2
million, up over 500% compared to Q1 2018
- Expects to sign definitive agreements for the previously
announced acquisitions of Fulcrum Automation Technologies, Autopro
Automation and CSA by July 2019
- Completed acquisitions will add combined trailing revenues of
approximately C$37 million and
C$6 million in EBITDA
VANCOUVER, May 30, 2019 /CNW/ - Universal mCloud
Corp. (TSX-V: MCLD) (OTCQB: MCLDF) ("mCloud" or the "Company"),
a leading provider of asset management solutions combining IoT,
cloud computing, artificial intelligence ("AI") and analytics,
today announced its financial results for the first quarter ended
March 31, 2019.
"As we advance our strategy of connecting energy assets with AI
and analytics, we saw solid growth through the progress we made
this past quarter in all three of our business segments in Smart
Buildings, Wind, and Oil and Gas," said Russel McMeekin, mCloud President and CEO. "We
are focused on completing the previously announced acquisitions of
CSA, Fulcrum Automation Technologies and Autopro Automation, which
we expect will take our business to even greater heights."
Q1 2019 Financial Highlights
The table below summarizes the Company's operating performance
for the first quarter of 2019:
|
|
mCloud Q1 2019
summary (all figures in Canadian dollars)
|
Q1
|
|
|
Revenues
|
$2,193,430
|
Gross
Margin
|
1,861,264
|
Selling, General, and
Administrative Expenses (SG&A)
|
765,889
|
Research and
Development (R&D)
|
640,571
|
Sales and Marketing
(S&M)
|
1,006,852
|
Normalized
Income
|
$
(552,048)
|
Acquisitions,
Technology Integration, and New Market Expansion
|
(1,837,818)
|
Other
items
|
(119,755)
|
EBITDA
|
$(2,509,621)
|
|
|
The tables below are summaries of the first quarter 2019
standalone operating performance of CSA Inc. ("CSA") and Autopro
Automation Consultants Inc. ("Autopro"), for which the Company
expects to have signed definitive agreements by July 2019:
|
|
CSA Inc. Q1 2019
summary (all figures in Canadian dollars)
|
|
|
|
Revenues
|
$421,962
|
Selling, General, and
Administrative Expenses (SG&A)
|
$198,022
|
EBITDA
|
$85,804
|
|
|
|
Autopro Automation
Consultants Ltd. Q1 2019 summary (all figures in Canadian
dollars)
|
|
|
Revenues
|
$8,384,317
|
Selling, General, and
Administrative Expenses (SG&A)
|
$2,634,042
|
EBITDA
|
$1,022,222
|
|
|
Per PwC Audited
financials
|
Q1 2019 Operating Highlights
In the first quarter of 2019, the mCloud Smart Buildings segment
made continued progress in the quick serve restaurant segment with
new implementations at notable restaurant chains, in addition to
the continued service of existing long-term customers. On the
technology front, mCloud made significant advancements in the
evolution of its AssetCare™ platform with the Microsoft Azure
Cloud.
In January 2019, the Smart
Buildings segment also started a nine-year AssetCare contract with
partner SCN Ltd. ("SCN") to connect the Heiwado Shopping Center in
Changsha, Hunan Province, China. The Company provided an update in
April 2019 announcing AssetCare
connectivity had been established with the shopping center, marking
a major implementation milestone.
In March 2019, mCloud's Wind
segment announced a strategic collaboration with Britwind, an
affiliate of UK's Ecotricity to target over 1,000 Endurance
E-series wind turbines for upgrades that include AssetCare
solutions for these turbines. Additionally, the Wind team is
applying AssetCare analytics to improve wind turbine availability
and health of wind turbines in China and continental Europe.
In April 2019, mCloud's Smart
Buildings segment began a six-year agreement with TELUS Corporate
Real Estate ("TELUS") to upgrade HVAC controls and deploy its
AssetCare offering at 200 Consilium Place, a premier TELUS office
tower in Scarborough, Ontario,
Canada.
Go Forward Highlights
With the finalized acquisitions of CSA and Autopro in
July 2019, the Company expects the
stage to be set for mCloud as a major unified, high-growth player
in AI-powered energy asset management, adding C$37 million in revenue and C$6 million in EBITDA. By late summer, the
Company expects to bring onboard its first oil and gas customers,
followed by significant wind deployments in China and the UK heading into the fall
timeframe.
Additions to Convertible Debenture Financing
Announcement
In relation to the Company's announcement earlier today of a
proposed debenture financing, the Company confirms that the net
proceeds received by the Company from that financing will be used,
in part, to: (a) satisfy all outstanding cash obligations of the
Company in connection with (i) the Company's previously announced
acquisition of Flow Capital Corp.'s royalty interest in Agnity
Global, and (ii) the Company's proposed acquisition of CSA; (b)
fund ongoing working capital requirements; and (c) fund the
proposed expansion of the Company's business, including its
international operations. The Company does not intend to use any of
the proceeds of the Offering to fund the Company's recently
announced proposed acquisition of Autopro. This acquisition will
instead be funded, in part, by non-convertible debt to be obtained
by the Company in connection with the completion of that
acquisition.
About Universal mCloud Corp.
Universal mCloud is creating a more efficient future with the
use of AI and analytics, curbing energy waste, maximizing energy
production, and getting the most out of critical energy
infrastructure. Headquartered in Vancouver, Canada, with technology and
operations centers in San Francisco,
CA, and Bristol, PA, mCloud
takes advantage of IoT sensors to bring data from connected assets
into the cloud, applying AI and analytics to maximize their health
and performance. Today, mCloud offers complete asset management
solutions to three distinct segments: smart buildings, wind energy,
and oil and gas. With over 100 blue chip customers and more than
28,000 assets connected in thousands of locations worldwide, mCloud
is changing the way energy assets are managed. 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,
the completion of the Transaction, the future business prospects of
the Company and the 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 several risks as 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.