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Renoworks reports year-over-year revenue
growth of 25% to $3.8
million
CALGARY, May 1, 2019 /CNW/ - Renoworks
Software Inc. (TSXV: RW)("Renoworks" or the
"Company), the leading visualizer for the home remodeling
and new home construction industry, yesterday announced financial
results for the fourth quarter ended December 31, 2018.
Financial and business highlights for the fourth quarter and
fiscal 2018:
- Record annual revenue of $3,843,239, up 25% over prior year.
- Quarterly revenue of $938,133 for
the three months ended December 31,
2018 compared to $784,5451 in 2017, an increase of
20%.
- Design Services revenue of $1,107,228 in 2018 versus $593,756 in 2017, an increase of 86%.
- Design services revenue of $217,510 for the three months ended December 31, 2018 compared to $151,367 in 2017, up 44%.
- Net loss of $474,888 for
2018. As Renoworks' growth strategy progresses, it remains
flexible to invest in the recruitment of qualified personnel in
response to increased demand and to further the Company's efforts
to fulfill its long-term strategies of software development,
increased marketing and financial growth.
- As at December 31, 2018, the
Company had 33,837,810 common shares issued and outstanding.
"The Company continues to benefit from the investments in our
infrastructure, R&D, operations and marketing over the last
year," stated Doug Vickerson, CEO of
Renoworks. "This has made our significant growth in design services
possible, which has contributed to strong top line results, as well
as accelerated our development of our next generation platform.
These results maintain our record trend of consistent
year-over-year quarterly revenue growth with increases of 10%, 28%,
45%, and 20% beginning with Q1 of 2018."
Mr. Vickerson continued, "Additionally, alongside our strategic
partner, Geomni, we announced our 3D modeling and automated
measurement solution, Renoworks FastTrack, which has allowed us to
effectively position Renoworks for growth both in the remodeling
market and in new markets beyond remodeling."
"As the industry continues to embrace the customer journey
surrounding the remodeling process, our dominance in the essential
design segment and alliance with Geomni will provide the catalyst
in delivering these solutions faster to our growing client list of
building product manufacturers and distributors.
Mr. Vickerson added, "Our commitment to bringing our clients
substantial innovation and engagement remains a cornerstone in our
strategy and we are moving quickly to address the multitude of
categories in the market and the industry's demands with our core
technology. For this reason, we anticipate continued growth in
2019."
Financial results from operations for the fourth quarter 2018
with comparatives for 2017 are as follows:
|
Three Months Ended
December 31
|
2018
|
2017
(restated)
|
Revenue
|
$938,133
|
$784,545
1
|
Gross
Margin
|
$507,617
|
$503,4081
|
Expenses
|
$677,377
|
$697,5671
|
Loss
|
$233,091
|
$239,4661
|
Loss per
share
|
($0.01)
|
$0.001
|
Adjusted
EBITDA
|
($209,327)
|
(182,969)
1
|
Weighted Average
Shares
Outstanding
|
33,659,248
|
33,562,810
|
Financial results from operations for the year ended
December 31, 2018 with comparatives
for 2017 are as follows:
|
Twelve Months Ended
December 31
|
2018
|
2017
(restated)
|
Revenue
|
$3,843,239
|
$3,055,3821
|
Gross
Margin
|
$2,612,279
|
$2,165,7121
|
Expenses
|
$2,683,636
|
$2,565,2471
|
Loss
|
$474,888
|
$828,8121
|
Loss per
share
|
$0.01
|
$0.02
|
Adjusted
EBITDA
|
($337,056)
|
($662,474)
1
|
Weighted Average
Shares Outstanding
|
33,659,248
|
33,562,810
|
Cash used in
operations
|
$318,125
|
$646,3311
|
The Company's financial position as of December 31, 2018 with comparatives from 2017 is
as follows:
|
December 31,
2018
|
December 31,
2017 (restated)
|
Cash
Balance
|
$385,335
|
$719,298
|
Accounts
Receivable
|
$464,365
|
$396,841
|
Working
Capital
|
($94)
|
$396,7741
|
Deferred
Revenue
|
$956,494
|
$1,071,0511
|
Long- term
liabilities
|
$336,080
|
$392,6871
|
Shareholder's
Equity
(Deficiency)
|
($202,086)
|
$140,2671
|
Deficit
|
($7,242,757)
|
($6,767,869)
1
|
Total
Assets
|
$1,158,998
|
$1,481,6981
|
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software and integration solutions for the remodeling
and new home construction industry. Renoworks delivers its
technology to manufacturers, contractors, builders, and retailers,
offering solutions to one of the home improvement industry's
greatest challenges: enabling homeowners to review their product
selections in a true-to-life virtual environment before committing
to purchases and construction. Renoworks markets its technologies
as innovative engagement tools and generates revenues from four
main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks
Design Services, and Renoworks API (Application Programming
Interface).
For more information,
visit: www.renoworks.com and www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS.
However, management of Renoworks believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock based
compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that
Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on SEDAR (www.sedar.com).
1 IFRS 15 transition adjustments
The 2017 financial results have been restated due to the
Company's conversion to IFRS 15 effective January 1, 2018. The Company has adopted the
standard effective January 1, 2018
using the full retrospective method which requires each prior
reporting period presented to be restated.
Forward Looking Information
Certain statements in this news release, other than
statements of historical fact, are forward looking information that
involves various risks and uncertainties. Such statements relating
to, among other things, the prospects for the company to enhance
operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral forward
looking statements are based on the estimates and opinions of the
management on the dates they are made and expressly qualified in
their entirety by this notice. The Company assumes no obligation to
update forward-looking statements should circumstances or
management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.