Renoworks reports highest quarterly revenues in its history and posts quarter of profitability - design services revenues up 195%
CALGARY, ALBERTA, November 27, 2018 – Renoworks Software Inc. (TSXV: RW)(“Renoworks” or the “Company”), the leading visualizer platform for the home remodeling and new home construction industry, yesterday announced financial results for the third quarter ended September 30, 2018. 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 $1,084,208 for the three months ended September 30, 2018 compared to $748,4951 in 2017, up 44%.
- Design service revenues increased by 195% to $308,899 in the three months ended September 30, 2018, compared to $158,395 for the same period in 2017.
- 38% of the third quarter’s revenue in 2018 is attributable to annual recurring customer contracts.
- Gross margins remained strong at 75%.
- Adjusted EBITDA* for the three months ended September 30, 2018, a profit of $99,901 compared to a loss of $405,3161 for the same fiscal period in 2017.
- Reduced long-term debt from $100,371 as at September 30, 2017 to $8,111 as at September 30, 2018.
- Expenses for the third quarter of $731,994. Expenses were consistent with the same period in fiscal 2017.
- Net profit in Q3 was $61,192 versus a loss of $347,2711 during the same quarter a year ago.
- As at September 30, 2018, the Company had 33,712,810 common shares issued and outstanding.
“I’d like to thank all the outstanding members of our team, remarkable customers, partners and shareholders who have supported our vision and played a role in Renoworks’ success towards achieving our goals.”
Doug Vickerson, CEO of Renoworks, said, “This is an exciting time for Renoworks and its shareholders as we build on the momentum of our robust second quarter results. This is our second consecutive profitable quarter and we posted record revenues yet again which is another major milestone for our Company. We’re extremely pleased with the continued strong demand for our design services offering, where we saw revenue growth of 195%.”
Mr. Vickerson added, “I’d like to thank all the outstanding members of our team, remarkable customers, partners and shareholders who have supported our vision and played a role in Renoworks’ success towards achieving our goals.”
Financial results from operations for the third quarter 2018 with comparatives for 2017 are as follows:
| Three Months Ended September 30 | ||
|---|---|---|
| 2018 | 2017 | |
| Revenue | $1,084,208 | $748,495* |
| Gross Margin | $817,065 | $532,934* |
| Expenses | $731,994 | $800,392 |
| Loss | $61,192 | ($347,271)* |
| Loss per share | ($0.00) | ($0.01) |
| Adjusted EBITDA | 99,901 | (405,316)* |
| Weighted Average Shares Outstanding | 33,712,810 | 33,562,810 |
Financial results from operations for the year to date 2018 with comparatives for 2017 are as follows:
| Nine Months Ended September 30 | ||
|---|---|---|
| 2018 | 2017 | |
| Revenue | $2,905,106 | $2,269,835* |
| Gross Margin | $2,104,661 | $1,639,115* |
| Expenses | $2,334,587 | $2,180,004 |
| Loss | $241,796 | $589,347* |
| Loss per share | $0.01 | $0.02 |
| Adjusted EBITDA | ($127,728) | ($479,506)* |
| Weighted Average Shares Outstanding | 33,712,810 | 33,368,317 |
| Cash Used in Operations | $135,661 | $472,900 |
The Company’s financial position as of September 30, 2018 with comparatives from 2017 is as follows:
| September 30, 2018 | Septermber 30, 2017 | |
|---|---|---|
| Cash Balance | $501,201 | $916,397 |
| Accounts Receivable | $654,516 | $518,699 |
| Long-term Debt | $8,111 | $100,371 |
| Shareholder's Equity (Deficiency) | ($211,224) | $835,879* |
| Deficit | ($7,223,830) | ($6,027,844)* |
| Total Assets | $1,321,434 | $1,585,382 |
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 innovative engagement tools and generates revenues from four main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services and Renoworks SDK (Software Development Kit). For more information, visit: www.renoworks.com and www.renoworkspro.com.
For further information on Renoworks please contact:
Doug Vickerson, CEO
Phone: 403-296-3880
Email: doug.vickerson@renoworks.com
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
For investor information for Renoworks please contact:
Rob Gamley
Phone: 604-689-7422
Email: rob@contactfinancial.com
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC, Canada V7Y 1G5
*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).
* 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.
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