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CALGARY, AB, Aug. 5, 2020 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), the leading end-to-end visualization software
platform for the building construction industry, today announces
financial results for the three and six months ended June 30, 2020. 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 $1,334,140
for the three months ended June 30,
2020, compared to $1,136,384
in 2019, an increase of 17%.
- Design services revenue of $696,692 for the three months ended June 30, 2020, compared to $433,708 in 2019, up 60%.
- Gross margins continue to be strong at 69% and 64%,
respectively, for the second quarter of 2020 and 2019.
- Net income of $236,790 for the
quarter ended June 30, 2020, compared
to a net loss of $100,182 in
2019.
- As of June 30, 2020, the Company
had 36,610,507 common shares issued and outstanding.
"Renoworks is proud to announce another record revenue quarter,"
stated Doug Vickerson, CEO of
Renoworks. "Our visualization software platform continues to see
demand from the industry who have accelerated their digital
adoption to adjust to today's new online end-user."
"Renoworks Design Services business unit continues its growth,
achieving a 60% increase in revenue over the same quarter last
year." Mr. Vickerson continued, "The quarter also resulted in net
income of $236,790.
Financial results from operations for the second quarter of 2020
with comparatives for 2019 are as follows:
|
Three Months Ended
June 30
|
2020
|
2019
|
Revenue
|
$1,334,140
|
$1,136,384
|
Gross
Margin
|
$925,384
|
$730,477
|
Expenses
|
$661,360
|
$799,191
|
Income
(Loss)
|
$236,790
|
($100,182)
|
Income (Loss) per
share
|
$0.01
|
($0.01)
|
Adjusted
EBITDA
|
$299,244
|
(29,127)
|
Weighted Average
Shares
Outstanding
|
36,610,507
|
33,639,726
|
Financial results from operations for the year to date 2020 with
comparatives for 2019 are as follows:
|
Six Months Ended June
30
|
2020
|
2019
|
Revenue
|
$2,451,994
|
$2,198,866
|
Gross
Margin
|
$1,698,987
|
$1,516,119
|
Expenses
|
$1,524,088
|
$1,655,396
|
Income
(Loss)
|
$166,123
|
($217,137)
|
Income (Loss) per
share
|
$0.01
|
($0.01)
|
Adjusted
EBITDA
|
$291,829
|
($73,646)
|
Weighted Average
Shares Outstanding
|
36,610,507
|
33,796,232
|
Cash increase (used
in)
operations
|
$102,881
|
($204,139)
|
The Company's financial position as of March 31, 2019, with comparatives from 2019 is as
follows:
|
June 30, 2020
|
December 31, 2019
|
Cash
Balance
|
$554,782
|
$500,751
|
Accounts
Receivable
|
$811,381
|
$398,418
|
Working
Capital
|
$288,052
|
$108,595
|
Deferred
Revenue
|
$1,222,510
|
$1,019,140
|
Long- term
liabilities
|
$391,729
|
$471,531
|
Shareholder's Equity
(Deficiency)
|
$206,361
|
($10,942)
|
Deficit
|
($7,762,729)
|
($7,928,852)
|
Total
Assets
|
$1,815,434
|
$1,387,516
|
Regarding COVID-19, the Company remains diligent in its
mitigation plans to ensure the safety and health of its employees.
Employees continue to work from home; however, the Company has
begun allowing some staff to return to Renoworks offices
voluntarily. Various precautions have been taken to ensure a safe
working environment considerate to social distancing measures and
concerns.
Renoworks continues to monitor the current circumstance as new
information emerges.
The Canadian government has announced various programs, one of
which was the Canadian Emergency Wage Subsidy (CEWS) program, to
assist companies experiencing significant impacts as a result of
the COVID-19 pandemic. To June 30,
2020, 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 has received benefits from
this non-repayable subsidy. To date, the Company has received
$235,938 in wage subsidies from this
program for the period March 15 to May
11, 2020. Amounts received are recorded as a reduction
to general and administrative expenses of the financial statements
for the period ended June 30,
2020. There can be no assurances that the Company will
qualify for additional subsidies under this program.
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.