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WIRE SERVICES./
CALGARY, May 28, 2020 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), the leading end-to-end visualization platform for
the building construction industry, yesterday announced financial
results for the three months ended March
31, 2020. The financial statements and related
management's discussion and analysis ("MD&A") can be viewed on
SEDAR at www.sedar.com.
Financial and business highlights for the first quarter
2020:
- Highest-to-date Q1 revenue of $1,117,854 for the three months ended
March 31, 2020 compared to
$1,062,482 in 2019, an increase of
5%.
- Design services revenue of $478,403 for the three months ended March 31, 2020 compared to $319,066 in 2019, up 50%.
- Adjusted EBITDA loss of $7,415,
down from a loss of $44,517 in Q1,
2019.
- Gross margins continue to be strong at 69% and 74%,
respectively for the first quarter of 2020 and 2019.
- Net loss of $70,667 for the
quarter ended March 31, 2020 compared
to $116,955 in 2019 as we focus
on continued investment in our platform solution to meet client and
market demand.
- As at March 31, 2020, the Company
had 36,610,507 common shares issued and outstanding.
Doug Vickerson, CEO of Renoworks,
stated, "We are proud to announce growth in revenue for this
quarter despite the impact of COVID-19 on our industry beginning in
March, 2020. Demand for online tools and services remains strong as
contractors and homeowners are forced to seek virtual solutions to
design, measure, estimate and plan their construction and
remodeling projects. Our design services growth stands as a
testament to this trend, with that business unit achieving a 50%
increase in revenue over the same quarter last
year.
Mr. Vickerson continued, "With revenue growth also came a net
loss this quarter as we continue to invest in R&D, personnel,
platform development and marketing to capture the opportunities
opened up by our industry's accelerating adoption of digital
technology. We look forward to deploying our remote measurement,
estimation, and design solutions to help our clients and the
industry as a whole carry on business in this time when virtual
solutions are needed now more than ever.
Financial results from operations for the first quarter 2020
with comparatives for 2019 are as follows:
|
Three Months Ended
March 31
|
2020
|
2019
|
Revenue
|
$1,117,854
|
$1,062,482
|
Gross
Margin
|
$773,604
|
$785,641
|
Expenses
|
$862,726
|
$856,234
|
Loss
|
$70,667
|
$116,955
|
Loss per
share
|
($0.00)
|
($0.00)
|
Adjusted
EBITDA
|
($7,415)
|
($44,517)
|
Weighted Average
Shares Outstanding
|
36,610,507
|
33,854,477
|
The Company's financial position as of March 31, 2020 with comparatives from 2019 is as
follows:
|
March 31,
2020
|
December 31,
2019
|
Cash
Balance
|
$444,610
|
$500,751
|
Accounts
Receivable
|
$530,507
|
$398,418
|
Working
Capital
|
$36,921
|
$108,595
|
Deferred
Revenue
|
$1,096,984
|
$1,019,140
|
Long- term
liabilities
|
$438,133
|
$471,531
|
Shareholder's Equity
(Deficiency)
|
($56,019)
|
($10,942)
|
Deficit
|
($7,999,519)
|
($7,928,852)
|
Total
Assets
|
$1,443,694
|
$1,387,516
|
The COVID-19 virus continues to cast significant future
uncertainty. The continued spread of COVID-19 in North America and globally could have an
adverse impact on the company's operations and financial
results. While the impact of COVID-19 is expected to be
temporary, the current circumstances are dynamic and the immediate
impact to the Company's business operations cannot be reasonably
estimated at this time. The extent to which the coronavirus
could impact the Company's results will depend on future
developments, which are highly uncertain and cannot be predicted,
including new information which may emerge concerning the severity
of the coronavirus and actions taken to contain the coronavirus or
its impact, among other unpredictable events.
The Canadian government has announced various programs to assist
companies experiencing significant impacts as a result of the
COVID-19 pandemic, one of which was the Canadian Emergency Wage
Subsidy (CEWS) program. This program provides a non-repayable
subsidy of 75% of employee wages up to a maximum of $847 per eligible employee per program week for
eligible employers. The Company is eligible to receive
benefits from this non-repayable subsidy. To date the Company
has received $116,576 in wage
subsidies from this program for the period March 15 to April 11, 2020. A total of
$58,288 of this amount is included in
the trade and other receivables balance and as a reduction to
general and administrative expenses of the financial statements for
the period ended March 31,
2020. There can be no assurances that the Company will
qualify for additional subsidies under this program.
Regarding COVID-19, management developed detailed mitigation
plans commencing March 17,
2020, and meets with the Board of Directors weekly to review
the Company status. Firstly, employee safety and health were
paramount. Every employee has worked remotely since March 15 and every employee reports vigilance in
practicing safe and healthy habits at home. No employees nor their
families are known to have contracted the coronavirus as of today's
date. The transition to remote working proceeded as planned.
Further, there have been no known negative impacts to deadlines or
productivity with regard to customer service, software development,
or employee morale. Finally, aided by the CEWS program, no
employees were laid off and no employee hours were reduced as at
today's date. We continue to remotely interface with customers and
monitor any cash flow impacts that may arise.
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 hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform 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, realize a revenue or other return on technology
and platform development, capitalize on actual or perceived
opportunities in the marketplace, or adequately cope with the
impact of COVID-19, 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.