- 1H 2021 AssetCare™ revenues totaled C$14.4 million compared to C$7.1 million, up 102% year-over-year
- 1H 2021 AssetCare Over Time recurring revenues were
C$12.6 million compared to
C$3.7 million, up 244%
year-over-year
- 1H 2021 total revenues were C$15.6
million compared to C$11.6
million, up 35% year-over-year
- Engineering Services and new AssetCare installations were
impacted by pandemic restrictions in May and June
- Demand for AssetCare solutions bolstered by "return-to-work"
requirements, utility partnerships, driving growth in
backlog
- Company continues to expect business returning to more
normal patterns in the second half of 2021
CALGARY, AB, Aug. 16, 2021 /CNW/ - mCloud Technologies
Corp. (TSXV: MCLD) (OTCQB: MCLDF) ("mCloud" or the
"Company"), a leading provider of AI-powered asset management and
Environmental, Social, and Governance ("ESG") solutions today
announced its financial results for the first half ended
June 30, 2021 ("1H 2021").
Russ McMeekin, mCloud President
and CEO said: "mCloud continued to see growth in the first half of
2021 despite the pandemic headwinds experienced in May and June.
Our sales activity and pipeline continue to grow, and we retain a
very strong backlog heading into the second half of the year. The
Company is well-positioned to scale through the remainder of 2021
and beyond via efforts on all fronts, including our expanded reach
through our new partnership with URBSOFT, which enables us to
collaborate on the enormous opportunity to reduce GHG emissions and
energy waste across the Saudi petrochemical industry through the
Kingdom of Saudi Arabia's Vision
2030 program."
1H 2021 Revenue Highlights
All figures in millions of Canadian dollars
For the six months
ended June 30,
|
2021
|
2020
|
AssetCare Over
Time
|
$
|
12.640
|
$
|
3.676
|
AssetCare
Initialization
|
1.739
|
3.425
|
Engineering
Services
|
1.210
|
4.467
|
Total
|
$
|
15.589
|
$
|
11.568
|
Gross
Profit
|
$
|
9.730
|
$
|
7.136
|
Gross
Margin
|
62%
|
62%
|
Direct
Expenses
|
|
|
Sales and Marketing
and Salaries, Wages, and Benefits
|
$
|
10.967
|
$
|
12.201
|
Research and
Development
|
1.461
|
0.361
|
General and
Administrative
|
2.893
|
2.407
|
Total Direct
Expenses
|
$
|
15.321
|
$
|
14.969
|
Operating
EBITDA
|
$
|
(5.591)
|
$
|
(7.833)
|
mCloud generated 1H 2021 revenues of C$15.6 million compared to revenues of
C$11.6 million. This represents a 35%
year-over-year increase in total revenue despite a substantial
reduction in Engineering Services revenue and new AssetCare
connections hampered by ongoing pandemic restrictions.
AssetCare Over Time revenues, which are the recurring revenues
attributed to AssetCare, were C$12.6
million in 1H 2021 compared to C$3.7
million in the first half of 2020, a 244% increase
year-over-year.
The Company added 1,019 new connected assets in the second
quarter ended June 30, 2021 ("Q2
2021") reaching 62,508 total, the result of continued restricted
access to customers due to the pandemic.
Gross margins for 1H 2021 were 62%, comparable to the same
period one year ago.
Operating EBITDA, defined as gross profit less all direct
expenses improved by approximately C$2.2
million in 1H 2021 compared to the same period in 2020, even
with the addition of C$1.1 million in
research and development expenses. This was largely the result of
reduced payroll expenses in 1H 2021 compared to the same period in
2020. Professional and Consulting expenses, primarily driven by
financing, M&A, and up-listing activities were approximately
C$4.4 million in 1H 2021 compared to
C$4.6 million over the same period a
year earlier.
During Q2 2021, the Company used cash totaling C$7.8 million. Approximately C$3.3 million were related to a one-time
repayment of debt and the licensing of third-party software,
intellectual property, and technical services. The remaining
C$4.5 million were investments for
growth and expenses related to legal, audit, up-listing, and
financing activities. Heading into the second half of the year, the
Company anticipates having full access to a C$2.5 million credit facility provided by ATB
Financial along with an increase in collections, which were
unusually low in Q2 2021.
Second Half 2021 Look Ahead
mCloud remains focused on reaching its next milestone of 70,000
connected assets through its presence in North America (the province of Alberta in Canada and New
York and California in
the United States), the
Middle East, and Southeast Asia as pandemic restrictions lift
in these regions. Following this milestone, the Company has charted
a path to surpass 100,000 connected assets through these markets
and strategic business development activities in the United Kingdom, continental Europe, Japan, and the southern United States.
The Company will be hosting mCloud Connect 2021, mCloud's annual
user conference on September 14, 2021
as a livestreamed virtual event. The event will be headlined by
Lucas Joppa, Microsoft's Chief Environmental Officer, and
Chris Hadfield, Canadian astronaut
and commander of the International Space Station.
At the event, mCloud plans to unveil new technology developments
and showcase the ESG impact of its AssetCare solutions, including
new capabilities for HVAC and indoor air quality, developments in
the Company's solutions for oil and gas, and advancements to its
connected worker portfolio including AssetCare Mobile, AssetCare
Enterprise, and mCloud's 3D digital twin solutions. These and other
developments are expected to fuel demand for AssetCare solutions
through the market need for solutions to eliminate GHG emissions
and report on industrial ESG outcomes in the second half of
2021.
Registration for the event is free. For more information, visit
the event Web site at www.mcloudconnect.com.
1H 2021 Conference Call
The Company will host a conference call to discuss the financial
results for 1H 2021 at 10:00 a.m. ET
the morning of August 17, 2021.
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 416-764-8659 or
1-888-664-6392 with the confirmation number 46289983. 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 Tuesday, August
24, 2021 at midnight (ET). To access the archived conference
call, dial 1-888-390-0541 and enter the reservation number
289983.
A live audio webcast of the conference call will be available at
https://bit.ly/3jSmSlN. 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.
Close of Private Placement Offering
The Company also announced today it has completed its previously
announced non-brokered private placement offering of 227,027 units
of the Company (the "Units") at a price per Unit of C$1.85 for gross proceeds of approximately
C$420,000 (the "Offering"). Each Unit
consist of one common share and one common share purchase warrant
(each, a "Unit Warrant"). Each Unit Warrant will entitle the holder
thereof to acquire one common share at an exercise price of
$2.85 per share at any time prior to
5:00 p.m. (Mountain Standard Time) on
April 15, 2024.
The Company expects to use the net proceeds of the Offering to
advance the Company's Alberta-led
ESG and oil and gas decarbonization agenda, including the
commercialization of its new AssetCare fugitive gas and leak
detection solution, and for working capital and general corporate
purposes. All securities issued under the Offering are subject to a
hold period of four months and one day from the date of issuance in
accordance with applicable securities legislation. The Offering
remains subject to the final approval of the TSXV.
The securities referenced herein have not been, and will not be,
registered under the U.S. Securities Act, or any U.S. state
securities laws, and may not be offered or sold in the United States without registration under
the U.S. Securities Act and all applicable state securities laws or
compliance with the requirements of an applicable exemption
therefrom. This news release shall not constitute an offer to sell
or the solicitation of an offer to buy any such securities in
the United States, nor shall there
be any sale of any such securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About mCloud Technologies Corp.
mCloud is unlocking the untapped potential of energy intensive
assets with 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 for commercial
buildings, renewable energy, healthcare, heavy industry, and
connected workers. IoT sensors bring data from connected assets
into the cloud, where AI and analytics are applied to maximize
their performance.
Headquartered in Calgary,
Canada with offices 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
62,000 assets connected in thousands of locations worldwide, mCloud
is changing the way energy assets are managed.
mCloud's common shares trade on the TSX Venture Exchange under
the symbol MCLD and on the OTCQB under the symbol MCLDF. mCloud's
convertible debentures trade on the TSX Venture Exchange under the
symbol MCLD.DB. For more information, visit
www.mcloudcorp.com.
Non-GAAP Measure
Selected financial information for the six-month periods ended
June 30, 2021 and June 30, 2020 set out above include reference to
"Operating EBITDA," which is not recognized under International
Financial Reporting Standards and is a non-generally accepted
accounting principle ("Non-GAAP") measure.
The Company defines Operating EBITDA attributed to shareholders
as gross profit less all expenses related to sales and marketing,
wages, salaries, and benefits, research and development, and
general and administrative activities.
The Company believes Operating EBITDA is a useful measure as it
provides important and relevant information to management about the
operating and financial performance of the Company. Operating
EBITDA enables management to assess its ability to generate
operating cash flow to fund future working capital needs, and to
support future growth.
This information should be read in conjunction with the
unaudited interim consolidated financial statements for the three
months ended June 30, 2021 and
audited consolidated financial statements and notes thereto for the
year ended December 31, 2020 along
with mCloud's MD&As for the corresponding periods, which are
available under mCloud's profile on SEDAR at www.sedar.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 information related to the
timing of easing of pandemic restrictions, access to a credit
facility provided by ATB Financial, collection patterns in the
second half of 2021, business growth in the second half of 2021,
and planned technology announcements for mCloud Connect 2021.
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.