- Q3 2019 normalized income grew to over C$1.2 million compared to a C$132,368 loss in Q2 2019.
- In the last 90 days, AssetCare™️ revenue grew organically by
36% to C$4.1 million, up from
C$3.0 million in Q2 2019.
- Annualized organic growth of over 160% in AssetCare
revenue.
- Q3 2019 total revenue, accounting for an abbreviated period for
Autopro, was C$9.2 million.
- Year-to-date revenues at C$14.4
million compared to C$1.8
million for full FY 2018.
- Guidance for 2020 was provided, with expected annual revenues
between C$70 to C$80 million, normalized income between
C$11.5 million to C$14.0 million, and over 50% of total revenues
coming from AssetCare.
- Over 70% growth in connected assets under management expected
in 2020.
VANCOUVER, Nov. 14, 2019 /CNW/ - mCloud Technologies
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 third quarter ended September 30, 2019.
"In the third quarter of 2019, we saw strong and persistent
organic growth in recurring revenues across all business segments,
resulting in positive C$1.2 million
in normalized income," said Russ
McMeekin, mCloud President and CEO. "As we announced in
early October, we are now on track to exceed over 40,000 connected
assets by year-end, enabled by our strong business performance in
getting assets connected in three continents across our Smart
Facilities, Smart Energy, and Smart Process lines of business."
"The bottom line is that our AssetCare platform is now the
primary driver for mCloud's growth through the rapid addition of
new customers, connected assets, and recurring revenues," McMeekin
added. "The high-performance technologies and domain expertise that
we have acquired, our aggressive market entry into process
industries such as oil and gas, and our international expansion
plans in Continental Europe, Southeast
Asia, and soon the Middle
East, are quickly growing our reach globally."
"For 2020, we expect to see revenues double in the range of
C$70.0 million to C$80.0 million with normalized income between
C$11.5 million to C$14.0 million," McMeekin continued. "We estimate
that no less than 50% of our 2020 revenues will be derived from
high-margin AssetCare contracts, with 65% to 70% of these from
implementations with multi-year recurring revenues."
"We expect to grow AssetCare revenues by approximately 70% in
2020 and to have at least 70,000 connected assets or 75% growth on
an asset basis in the next fiscal year."
Q3 2019 Financial Results
Revenue for the third quarter grew 207% to C$9.2 million compared to C$3.0 million in the second quarter of 2019,
representing a July 10, 2019 cut-off
for the acquisition of Autopro.
(all figures in
000's of Canadian dollars)
|
|
Revenues
|
$9,233
|
Gross
Margin
|
5,038
|
|
55%
|
General, and
Administrative Expenses (G&A)
|
1,125
|
Research and
Development (R&D)
|
1,163
|
Sales and Marketing
(S&M)
|
1,542
|
Normalized
Income
|
1,208
|
Acquisitions,
Financings, Technology Integration, and New Market
Expansion
|
(5,575)
|
Other
Items
|
(2,502)
|
EBITDA
|
(6,869)
|
Financial Results for the First Nine Months of FY2019
Revenue for the nine-month period ended September 30, 2019 was C$14.4 million compared to C$1.8 million for full fiscal 2018.
(all figures in
000's of Canadian dollars)
|
|
Revenues
|
$14,430
|
Gross
Margin
|
9,130
|
|
63%
|
General, and
Administrative Expenses (G&A)
|
2,245
|
Research and
Development (R&D)
|
2,120
|
Sales and Marketing
(S&M)
|
4,245
|
Normalized
Income
|
520
|
Acquisitions,
Financings, Technology Integration, and New Market
Expansion
|
(7,722)
|
Other
Items
|
(3,616)
|
EBITDA
|
(10,818)
|
The Company has completed all documentation related to the Sales
and Purchase Agreement for CSA, Inc. ("CSA") in accordance with TSX
Venture Exchange ("TSX-V") requirements. Final disclosure processes
are being completed while the Company seeks approval from the
TSX-V.
CSA Standalone -
July – September 2019 (all figures in 000's of Canadian
dollars)
|
Revenues
|
$233
|
EBITDA
|
101
|
Q3 2019 Operating Highlights
In the third quarter of 2019, the Company continued to focus on
integrating acquired technologies into a single, unified AssetCare
offering, in addition to introducing the platform to new customers
and markets across all its business segments.
The Smart Facilities segment saw continued growth through
the addition of new quick-service restaurant and retail customers
across North America. As announced
in early October, the Company now has over 7,000 buildings in the
AssetCare Smart Facilities portfolio, each with multiple connected
assets including HVAC units and smart lighting all managed through
the use of AssetCare's AI and analytics capabilities. With the
first implementation of AssetCare at the Heiwado Shopping Center in
Changsha, Hunan Province now complete and showing 25%
HVAC energy savings and 8% net reductions in overall energy use,
the Smart Facilities team has begun making plans to implement
AssetCare at dozens of additional malls across Greater China.
The Smart Energy segment also saw new customers and
connected wind turbines, most notably an agreement with Longyuan
Construction Investment (Chengde) Wind Power Co., Ltd.,
("Longyuan") to connect 35 GE wind turbines at Longyuan's Pu Fa
Wind Farm in China, originally
announced in August. The Smart Energy team worked with Longyuan to
use AssetCare's AI and analytics to identify substantial
opportunities to improve performance. Guided by AssetCare, Longyuan
has been able to improve asset operations, with some wind turbines
seeing increases as large as 30% in ongoing wind turbine energy
production.
The Smart Process segment has made substantial progress
in bringing AssetCare capabilities online for customers in process
facilities for oil and gas, petrochemical, and pipeline management.
As announced in July shortly after the acquisition of Autopro, the
Smart Process team had delivered AssetCare to six oil and gas
facilities in Alberta, Canada. As
a result of this timely connectivity to AssetCare, the team
estimates it has improved response times to unplanned outages by at
least 300% at these sites, in one instance preserving approximately
C$50,000 in production at one of
these facilities by cutting recovery times from six hours to two.
As announced in October, the Company estimates that it has
connected 100 new oil and gas assets in the third quarter.
Substantial advances in product and technology
development were demonstrated in the third quarter through the
introduction of new capabilities. Supported by the Smart Process
team in mCloud's Calgary office,
the team proved its ability to field 3D scanners to create digital
replicas of process facilities in support of the Company's 3D
Digital Twin agenda. Research and development continued on the use
of drones for AI-driven digital blade inspection on wind turbines,
in addition to the measurement of fugitive emissions at oil and gas
plants in response to increasing demand from oil and gas operators
worldwide.
Q4 2019 Outlook
mCloud expects to see the proportion of business coming from new
customers and AssetCare recurring revenues to continue growing at a
fast pace through the fourth quarter. The Company anticipates
quarterly revenues in the C$13
million to C$15 million range,
reflecting an expected annualized revenue run rate of more than
C$50 million in Q4 2019. Factors
expected to influence performance include the timing of the closing
of the CSA acquisition and the completion of certain customer
projects over the holiday season.
In Q4 2019, the Company expects that revenues directly
attributable to AssetCare will be no less than 40% with a final
tally of more than 40,000 connected assets under management. On
that basis, full-year revenues from AssetCare are anticipated to be
at least double those seen year-over-year from 2018.
Q3 2019 Conference Call
The Company is hosting a conference call to discuss the
financial results for the third quarter at 5:30 p.m. ET today. The conference call will
include prepared remarks from Russ
McMeekin, Chief Executive Officer, and Chantal Schutz, Chief Financial Officer. After
the prepared remarks, the Company will accept questions.
To access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 10 minutes prior to
the beginning of the call to ensure participation. The conference
call will be archived for replay by telephone until Thursday, November 21, 2019, at midnight (ET). To
access the archived conference call, dial 1-855-859-2056 and
enter the reservation number 4472726.
A live audio webcast of the conference call will be available at
https://bit.ly/3249cbx. Please connect at least 15 minutes prior to
the conference call to ensure adequate time for any software
download that may be required to join the webcast. The
webcast will be archived at the above website for one year.
About mCloud Technologies Corp.
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. Through
mCloud's AI-powered AssetCare™ platform, mCloud offers complete
asset management solutions to three distinct segments: smart
facilities, power generation, and process industries including oil
and gas. IoT sensors bring data from connected assets into the
cloud, where AI and analytics are applied to maximize their
performance. Headquartered in Vancouver,
Canada with offices in twelve locations worldwide, the
mCloud family includes an ecosystem of operating subsidiaries that
deliver high-performance IoT, AI, 3D, and mobile capabilities to
customers, all integrated into AssetCare. With over 100 blue-chip
customers and more than 35,000 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 CSA transaction, the business prospects of the
Company, and the potential revenue of the Company going into
2020.
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 mCloud Technologies Corp.