(TSXV-PGV)
TORONTO, Nov. 18, 2020 /CNW/ - Prodigy Ventures Inc.
(TSXV: PGV) ("Prodigy" or the "Company") today announced its
financial results for the three and nine months ended September 30, 2020.
"Prodigy is responding to the shifts in the business as a result
of COVID-19." said Jeff Watts,
Prodigy's CEO. "The Company is maintaining a strong cash position
and continuing to deliver its pipeline of work remotely without
interruption while preparing for 2021."
Third Quarter 2020 Financial Results
- Revenue for the three months ended September 30, 2020 totalled $3,787,029 as compared to $5,162,469 for the three months ended
September 30, 2019, a decrease of
27%.
- Gross profit for the three months ended September 30, 2020 of $1,101,009 as compared to $1,489,882 for the three months ended
September 30, 2019, a decrease of
26%.
- Operating Expenses for the three months ended September 30, 2020 of $862,654 as compared to $1,279,172 for the three months ended
September 30, 2019, a decrease of
33%.
- Net Income for the three months ended September 30, 2020 totalled $163,976 as compared to $150,933 for the three months ended September 30, 2019, an increase of 9%.
- Adjusted EBITDA for the three months ended September 30, 2020 totalled $316,762 as compared to $271,901 for the three months ended September 30, 2019, an increase of 16%.
- The Company had working capital of $2,506,833 as of September
30, 2020 compared to $2,728,512 as of December
31, 2019.
Year-to-Date 2020 Financial Results
- Revenue for the nine months ended September 30, 2020 totalled $12,365,324 as compared to $15,330,893 for the nine months ended
September 30, 2019, a decrease of
19%.
- Gross profit for the nine months ended September 30, 2020 of $3,475,420 as compared to $4,399,149 for the nine months ended September 30, 2019, a decrease of 21%.
- Operating Expenses for the nine months ended September 30, 2020 of $3,143,470 as compared to $3,849,266 for the nine months ended September 30, 2019, a decrease of 18%.
- Net Income for the nine months ended September 30, 2020 totalled $215,234 as compared to $392,456 for the nine months ended September 30, 2019, a decrease of 45%.
- Adjusted EBITDA for the nine months ended September 30, 2020 totalled $561,764 as compared to $732,049 for the nine months ended September 30, 2019, a decrease of 23%.
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2020
$
|
2019
$
|
2020
$
|
2019
$
|
|
|
|
|
|
Revenue
|
3,787,029
|
5,162,469
|
12,365,324
|
15,330,893
|
Gross
Profit
|
1,101,009
|
1,489,882
|
3,475,420
|
4,399,149
|
Expenses
|
862,654
|
1,279,172
|
3,143,470
|
3,849,266
|
Net and
comprehensive income for the period
|
163,976
|
150,933
|
215,234
|
392,456
|
|
|
|
|
|
Net income per
share – basic and diluted
|
0.00
|
0.00
|
0.00
|
0.00
|
Adjusted
EBITDA(1)
|
316,762
|
271,901
|
561,764
|
732,049
|
(1)
|
Adjusted EBITDA is a
non-GAAP financial measure, which is defined as earnings before
income tax expense, finance costs, depreciation and amortization
and share-based compensation. We exclude these items because they
affect the comparability of our financial results and could
potentially distort the analysis of trends in our business
performance. Adjusted EBITDA is used by management to assess our
operating performance. The presentation of Adjusted EBITDA is to
provide additional useful information to investors and analysts and
the measure does not have any standardized meaning under IFRS.
Adjusted EBITDA should therefore not be considered in isolation or
used in substitute for measures of performance prepared in
accordance with IFRS. Other issuers may calculate Adjusted EBITDA
differently.
|
(2)
|
For further
information regarding non-GAAP financial measures please see the
Company's Management's Discussion and Analysis for the period ended
September 30, 2020 under the heading "Non-GAAP Financial
Measures".
|
The complete unaudited financial statements and associated
Management's Discussion and Analysis are available under the
Company's profile at www.sedar.com or the Company's website at
www.prodigy.ventures.
COVID-19 UPDATE
Prodigy continues to carefully monitor and assess the evolving
situation related to COVID-19 and the potential impact to its
business, employees and customers. Although the impact to the
future demand for the Company's services remains unknown, the
Company has a continuing pipeline of work which is being delivered
remotely without interruption. Furthermore, in the spirit of
prudent management, the Company has taken steps to reduce its
overhead and ongoing expenses to ensure it maintains a strong cash
position. As a result, we believe the Company is well
positioned to absorb economic impacts and maintain its long-term
viability.
About Prodigy Ventures Inc.
Prodigy delivers Fintech innovation. The Company develops
software and services with emerging technologies for digital
transformation, identity and payments. Digital transformation
services include strategy, architecture, design, project
management, agile development, quality engineering and staff
augmentation. Prodigy has been recognized as one
of Canada's fastest growing companies with multiple
awards: Deloitte's Fast 50 Canada and Fast 500 North America (2016,
2017, 2018), Branham 300 (2017, 2018), Growth List (2018, 2019 and
2020), Canada's Top Growing
Companies (2019 and 2020).
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes
forward-looking information. Forward looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "intend", "could", "might", "should", "believe" and similar
expressions. Forward looking statements in this press release
include statements regarding the impact of COVID-19 on the
Company's business. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, and that information obtained from
third party sources is reliable, they can give no assurance that
those expectations will prove to have been correct. Readers are
cautioned not to place undue reliance on forward-looking statements
included in this document, as there can be no assurance that the
plans, intentions or expectations upon which the forward-looking
statements are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause actual results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, risk factors set forth in the Company's
Management's Discussion and Analysis for the three and nine months
ended September 30, 2020, a copy of
which is filed on SEDAR at www.sedar.com. Readers are cautioned
that this list of risk factors should not be construed as
exhaustive. These statements are made as at the date hereof and
unless otherwise required by law, the Company does not intend, or
assume any obligation, to update these forward-looking
statements.
Non-GAAP Financial Measures
Our financial statements are prepared in accordance with
International Financial Reporting Standards ("IFRS"). Certain
financial measures in this press release are not prescribed by
GAAP. These non-GAAP financial measures are included because
management uses the information to analyze operating performance.
These non-GAAP financial measures do not have any standardized
meaning and are therefore unlikely to be comparable to similar
measures presented by other companies. Except as otherwise
indicated, these non-GAAP measures are calculated and disclosed on
a consistent basis from period to period.
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 Prodigy Ventures Inc.