Clear Blue Technologies International Inc. (“Clear Blue” of the
“Company”) (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF), the Smart
Off-Grid™ Company, today announces its financial results for the
quarter ended September 30, 2021 (“Q3 2021”). Please refer to the
interim unaudited condensed Consolidated Financial Statements and
Management’s Discussion and Analysis (“MD&A”) for the three and
nine months ended September 30, 2021 filed on SEDAR at
www.sedar.com for more information. Clear Blue will host a
conference call at 11am ET today to discuss Q3 2021 financial and
operational results (details below).
Key Financial Results (all figures in
Canadian dollars)
On a Trailing Twelve Months (TTM) basis:
- Revenue was a
record $9,021,716 representing a 131% increase from $3,912,204 in
the corresponding previous period, which is mainly attributed to
our deployments with telecom infrastructure operators in
Africa;
- Gross profit was
$2,607,287, a 163% increase from $992,485 in the previous
period;
- Non-IFRS
Adjusted EBITDA for the period was $(2,551,702) as compared to
$(4,006,627) for the previous period.
For Q3 2021 ended September 30, 2021:
- Revenues were
$2,247,857, a 139% increase over $940,849 for quarter ended
September 30, 2020 (Q3 2020) due to telecom sales attributed to
contracts with telecom infrastructure operators in Africa;
- Gross profit for
Q3 2021 was $882,139 compared to $375,595 for Q3 2020, a
significant increase resulting from higher revenue for the
quarter;
- Quarterly
Non-IFRS Adjusted EBITDA was $(329,620) versus $(796,293) in Q3
2020;
- Pro forma
unaudited cash and inventory as at November 15 2021, was $5,902,173
($2,843,693 cash + $3,058,480 inventory as at September 30, 2021),
was approximately 150% of 2020 total revenue, which management
believes gives the Company a competitive edge in light of global
supply constraints.
Subsequent to Q3 2021 ended September 2021:
- Pro forma unaudited cash as at
November 15, 2021 of $2,843,693 vs. $538,049 as of September 30,
2021. The increased cash balance was due to the closing of recent
convertible debt financings.
- Subsequent to the quarter end, the
Company completed a private placement offering of convertible
unsecured subordinated debentures of the Company in two tranches,
for total gross proceeds $4,434,000, exceeding the company’s
previously communicated target of $4,000,000. The net proceeds
shall be used to fund working capital requirements and for scaling
of the business.
Outlook and Management
Comments
- Customer
planning for Telecom system rollouts and Illumient construction
planning for 2022 is very active at this time providing strong
indications to a very strong start to 2022 and resulting in
upgrades to our internal volume forecasting for the first two
quarters of 2022;
- The Company
expects early orders from its new Pico-Grid line, pertaining to
satellite/WiFi connectivity. We expect this new line of business to
be a meaningful revenue contributor beginning in 2023;
- By early Q1
2022, the Company is anticipating a large order, which could
potentially double our bookings from Q3 levels of $2,884,686, which
is not fully reflected in the guidance below;
- FTM revenue for
the period Q4 2021 to Q3 2022 is expected to be $9,000,000 versus
TTM revenue of $9,000,000 as of September 30, 2021, compared to a
TTM revenue of $3,900.000 as of September 30, 2020;
- While the
Company’s Q3 Gross Margin was relatively strong at 39%, for the
next few quarters Management expects the Gross Margin to be in the
30% to 35% range, owing to ongoing and well documented global
supply chain constraints, leading to higher raw materials and
shipping costs, even as the Company has been proactively managing
its supply chain;
- In the medium to
long-term, Management expects the Gross Margin to be higher in the
33% to 38% range. Overall, with its short-term Gross Margin
profile, and all else equal, Management anticipates the Company
could be Adjusted EBITDA break-even at an annual revenue in the
$15,000,000 to $20,000,000 range.
“We have seen an exciting year to date and our
TTM numbers clearly reflect our traction with deployments with
infrastructure operators in Africa, helping to increase TTM revenue
by 131% year-over-year as at Q3. Plus, this is expected to continue
with our FTM revenue guidance reaching $9 million for Q4, which
does not fully include a potential large order by early Q1 2022,"
said Miriam Tuerk, Co-founder & CEO of Clear Blue.
“We would also like to draw investors' attention
to our outlook, where we believe an annual revenue of
$15,000,000-20,000,000 would allow us to be EBITDA positive.
Doubling our TTM revenue over the past year doesn’t come without
some growing pains though, and the growth of Clear Blue through Q2
and Q3 required additional attention to cash flow and inventory
management. However, with our recent private placements, and
investment in inventory, we are in a strong position to fulfill
further large-scale rollouts expected in 2022.
Clear Blue has always had a strong focus on
innovation as a leader in the Smart Off-Grid market, so we
continued to invest significantly in R&D for Q3 to further new
product development for the fast-growing wireless cellular and
satellite markets. With the expected launch of this solution in
2022, we hope to bring continued growth to the Company through
market diversification while showcasing strong, ongoing revenue for
investors.”
Conference CallThe Company will
host a conference call to discuss its latest financial results at
11:00 AM Eastern Time (Canada/U.S.) on Tuesday, November 16, 2021.
Those interested can register at:
https://us06web.zoom.us/webinar/register/WN_AVgoIiWlT_OMCWuYGFiICQ
For more information, contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.comwww.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies
InternationalClear Blue Technologies International, the
Smart Off-Grid™ company, was founded on a vision of delivering
clean, managed, “wireless power” to meet the global need for
reliable, low-cost, solar and hybrid power for lighting, telecom,
security, Internet of Things devices, and other mission-critical
systems. Today, Clear Blue has thousands of systems under
management across 37 countries, including the U.S. and Canada.
(TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)
Legal DisclaimerNeither 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.
Forward-Looking StatementThis
press release contains certain "forward-looking information" and/or
"forward-looking statements" within the meaning of applicable
securities laws. Such forward-looking information and
forward-looking statements are not representative of historical
facts or information or current condition, but instead represent
only Clear Blue’s beliefs regarding future events, plans or
objectives, many of which, by their nature, are inherently
uncertain and outside of Clear Blue'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 financial results and future
upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue 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 Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue 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, Clear Blue has made certain assumptions. Although Clear
Blue 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. All subsequent written and oral forward-
looking information and statements attributable to Clear Blue or
persons acting on its behalf is expressly qualified in its entirety
by this notice.
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