Urbanimmersive Announces Its 2019 Audited Financial Results
January 14 2020 - 8:45AM
Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSX
VENTURE: UI) (OTC PINK: UBMRF) today announced select audited
consolidated financial results and presents business highlights for
the fourth quarter and year ended September 30, 2019. The
consolidated financial statements and related management’s
discussion and analysis (“MD&A”) can be viewed on SEDAR
at https://www.sedar.com/.
HIGHLIGHTS
- Success in the completion of the
integration of Urbanimmersive LLC (‘Tourbuzz’) along with all the
realized cost synergies anticipated;
- Gross Merchant Volume (‘GMV’) of
$2,535k for Q4-19 while compared to $1,481k for Q4-18, a growth of
$1,054k or 71% and a GMV of $10,061k for 2019 compared to $3,477k
for 2018, a growth of $6,584k or 189%;
- Revenues of $864k for Q4-19 while
compared to $812k for Q4-18, a growth of $52k or 6.4% and revenues
of $4,454k for 2019 compared to $2,271k for 2018, a growth of
$2,183k or 96%;
- Gross margin (before amortization)
of $816k (94.4%) for Q4-19 compared to $273k (33.6%) for Q4-18
(increase of $543k) and gross margin of $3,378k (75.8%) for 2019
compared to $335k (14.8%) for 2018 (increase of $3,043k);
- EBITDA of $466k for Q4-19 compared
to –$285k for Q4-18 (increase of $751k) and EBITDA of $725k for
2019 compared to –$1,366k for 2018 (increase of $2,091k);
- Net income of $746k for Q4-19
compared to a net loss of $1,589k for Q4-18 (improvement of
$2,335k) and net income of $1,942k for 2019 compared to a net loss
of $2,766k for 2018 (improvement of $4,708k);
- Cashflows related to operating
activities of $437k for Q4-19 compared to –$243k for Q4-18
(improvement of $680k) and cashflows related to operating
activities of $464k for 2019 compared to –$1,325k for 2018
(improvement of $1,789k);
- Conversion of all merchants using
low-margin services to new high margin platform feature;
- Renewal of terms and conditions of
the US term loan in compliance with its required financial
covenants and reclassed as long-term debt;
- Launch of a new corporate website
with enriched investors section;
SELECTED CONSOLIDATED FINANCIAL
INFORMATION
|
Three-month period
endedSept. 30, 2019 |
Three-month period
endedSept. 30, 2018 |
Twelve-month period
endedSept. 30, 2019 |
Twelve-month period
endedSept. 30, 2018 |
|
In thousands $ |
In thousands $ |
In thousands $ |
In thousands $ |
Gross Merchant Volume (GMV) * |
2,535 |
1,481 |
|
10,061 |
|
3,477 |
|
|
|
|
|
|
Revenues |
864 |
812 |
|
4,4954 |
|
2,270 |
|
Direct charges |
48 |
539 |
|
1,076 |
|
1,936 |
|
Amortization |
132 |
58 |
|
494 |
|
87 |
|
Gross margin (before
amortization and loss on disposal of assets) |
816 |
273 |
|
3,378 |
|
335 |
|
Operating expenses |
363 |
934 |
|
2,666 |
|
2,076 |
|
EBITDA** |
466 |
(285) |
|
725 |
|
(1,366) |
|
Other expenses (revenues) |
51 |
870 |
|
(1,313) |
|
938 |
|
Net income (loss) |
746 |
(1,589) |
|
1,942 |
|
(2,766) |
|
Basic net income (loss) per share |
0.01 |
(0.040) |
|
0.03 |
|
(0.04) |
|
* GMV represents the value of all transactions
performed by merchants using Urbanimmersive’s business solutions
for invoicing and/or collecting payments for their services.
** Exclude Tourbuzz acquisition costs of $13k
for the 3 and 12-months periods ended September 30, 2019 and
respectively $331k and $346k for the 3 and 12-months periods ended
September 30, 2018.
ACHIEVEMENTS
"This other consecutive quarter of strong
financial performance once again demonstrates the profitability and
sustainability of the Company following the successful integration
of Tourbuzz's activities and allows us to tackle the low season
with serenity and a financial strength never achieved before. This
is particularly satisfying to realize that this improvement in our
financial situation is driven by many various financial metrics
including revenues, gross margin, operating income, net income,
cash flow from operating activities and working capital. In
addition, the ongoing refinancing process of our term loan should
provide us with greater financial flexibility," said Ghislain
Lemire, President and CEO of Urbanimmersive.
"This year, we have put a lot of effort into
integrating, streamlining and harmonizing our technological, human
and financial activities following our major acquisition of
Tourbuzz in order to provide ourselves with the means to invest
more in the growth of our activities and we are very proud of the
results achieved today," said Ghislain Lemire, President and CEO of
Urbanimmersive. "We are also proud of the competent and tightly
integrated team we have put in place this year. Now that the
integration of our activities is behind us, team’s priority in the
coming months will be to optimize the customer experience through
increased sales and marketing support and the launch of new
innovative business solutions driven by the core technologies
developed by Urbanimmersive. We also intend to continue to pursue
strategic accretive acquisitions that will allow us to enhance our
product offering and accelerate our growth," said Ghislain Lemire,
President and Chief Executive Officer of Urbanimmersive.
Options grant and shares
issuanceThe Company also announces that 1,250,000 share
purchase options have been granted to employees, management and
members of the Board of directors pursuant to the terms of its
share option plan (the “Plan”). These options are exercisable at
$0.06 per share and expire on January 13, 2025. The Plan provides
that options may be exercised on a cumulative basis over a period
of three years from the date they are granted, as to one-third
every year. The Company has also issued 315,000 shares at a price
of $0.06 to Officers as bonus and which is subject to a 4-month
hold period from the date of issuance.
Update on the refinancing of the US term
loan
The Company just recently signed a financing
offer with a financial institution to mainly refinance its US term
loan with a current balance of Can$ 1.1 million as well as its
ongoing operations. Terms of this 2-year loan include a 5-year
amortization period, a variable interest rate of prime rate +5.0%
or 7.52% (while compared to 11.75% for the existing loan) and
similar guarantees. This financing offer also includes a $900k term
loan with a 20-year amortization period to acquire a commercial
condominium on the South Shore of Montreal in order to relocate
Company’s head office by May 2020. Closing of this financing is
expected before the end of this month.
TSX Venture Exchange has not reviewed this press
release and has neither approved nor disapproved the contents of
this press release.
Investor Conference CallUI will
be hosting a conference call to discuss 2019 financial results and
answer questions at 4:00 p.m. (ET) on January 14, 2020. To
participate in the conference call, please dial toll free number
(877) 620-1735 or international number (470) 414-9786 five to 10
minutes before the call is scheduled to begin. A replay will be
available for 7 days from January 14, 2020 7:00 p.m. to January 21,
2020 7:00 p.m. The number to hear the conference replay are (855)
859-2056 or (404) 537-3406. Conference ID for the conference call
and the replay is 7582201.
About Urbanimmersive
Urbanimmersive is the leading SaaS business
management solution providing mission critical solutions to visual
content providers serving the real estate residential, commercial,
construction and local businesses markets. The Urbanimmersive
platform helps customers increase their operational productivity
while helping in delivering the full potential of visual content
creations through leading-edge websites builder tool, AI-backed
image indexing, robust file transfer systems and interactive visual
technology solutions. Urbanimmersive’s core technology is a 3D
emulator powered by a visual content recognition post-production
algorithm that delivers online and offline cost-effective
alternatives to traditional 3D engines for the creation of
immersive digital environments. The 3D emulator enables to quickly
create immersive environments of small existing and future spaces
like houses to extremely large environments like stadiums, to which
clients can interpolate multiple layers of interactive and
contextualized set of data for many purposes such as for online
marketing, building asset management and offsite training and
inspection. The Company offers its advance features on a
pay-per-use transactional business model and licenses its immersive
technology in other market segments.
Caution of Forward-Looking
StatementsCertain 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 estimates or opinions change.
For more information, please
contact:
Urbanimmersive Inc. Ghislain LemirePresident
& CEO514-394-7820
X 202ghislainlemire@urbanimmersive.comwww.urbanimmersive.com
Simon Bédard, CA, CPA, CFA, MBA Chief Financial
Officer 514 394-7820
X 224simonbedard@urbanimmersive.com
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