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Renoworks announces 8% increase in revenue,
29% increase in Design Services
CALGARY, Aug. 14, 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 second quarter ended June 30, 2019. The financial statements and
related management's discussion and analysis ("MD&A") can be
viewed on SEDAR at www.sedar.com.
Quarterly financial and business highlights:
- Quarterly revenues of $1,136,384
for the three months ended June 30,
2019 compared to $1,048,167 in
2018, up 8%.
- Design service revenues increased by 29% to $433,708 in the three months ended June 30, 2019, compared to $336,703 for the same period in 2018.
- 38% of the first quarter's revenue in 2019 is attributable to
annual recurring customer contracts.
- Negative adjusted EBITDA* of $29,519 for the three months ended June 30, 2019, compared to positive adjusted
EBITDA of $46,460 for the same fiscal
period in 2018.
- Expenses for the second quarter of $799,161. Expenses were consistent with the
same period in fiscal 2018.
- Net loss in Q2 was $100,182
versus a profit of $8,370 during the
same quarter a year ago.
Doug Vickerson, CEO of Renoworks,
stated, "I am very pleased to report a strong increase in revenue
for the second quarter. In fact, this was the highest
quarterly revenue ever reported by our Company.
Revenues from our design services business unit continue to grow as
we expand our customer base in all areas of our business. We
maintain a positive outlook on our business, especially in light of
our recent developments in A.I. auto-recognition, our continued
partnership with Geomni in aerial imagery and 3D measurements and
opportunities in multiple markets. We continue to gain industry
recognition for our cutting-edge visualization solutions and are
prepared to further build on our successes into 2020."
Financial results from operations for the second quarter 2019
with comparatives for 2018 are as follows:
|
Three Months Ended
June 30
|
2019
|
2018
|
Revenue
|
$1,136,384
|
$1,048,167
|
Gross
Margin
|
$730,477
|
$770,156
|
Expenses
|
$799,161
|
$758,863
|
Profit
(Loss)
|
($100,182)
|
$8,370
|
Profit (Loss) per
share
|
($0.01)
|
$0.00
|
Adjusted
EBITDA
|
($29,519)
|
$46,460
|
Weighted Average
Shares Outstanding
|
33,639,726
|
33,662,810
|
Financial results from operations for the year to date 2019 with
comparatives for 2018 are as follows:
|
Six Months Ended June
30
|
2019
|
2018
|
Revenue
|
$2,198,866
|
$1,820,898
|
Gross
Margin
|
$1,516,119
|
$1,287,597
|
Expenses
|
$1,655,396
|
$1,602,595
|
Loss
|
$217,137
|
$303,090
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
($73,645)
|
($227,629)
|
Weighted Average
Shares Outstanding
|
33,796,232
|
33,662,810
|
Cash used in
operations
|
$204,139
|
$259,795
|
The Company's financial position as of June 30, 2019 with comparatives from 2018 is as
follows:
|
June 30,
2019
|
June 30,
2018
|
Cash
Balance
|
$826,684
|
$409,252
|
Accounts
Receivable
|
$544,564
|
$600,558
|
Long- term
debt
|
$53,727
|
$35,158
|
Shareholder's
Equity
|
$378,190
|
($307,980)
|
Deficit
|
($7,459,894)
|
($7,285,124)
|
Total
Assets
|
$1,950,351
|
$1,152,866
|
|
|
|
|
|
|
Stock Option Grant
During the month of August, the Company has also granted options to
acquire an aggregate of 900,000 common shares at an exercise price
of $0.30 per share to directors,
officers and employees of the Company. The options expire
August 11, 2024, vest equally over
three years and are governed by the Company's Stock Option
Plan.
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 five
main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks
Design Services, Renoworks FastTrack 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).
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.