RENOWORKS ANNOUNCES RECORD THIRD QUARTER 2020 FINANCIAL RESULTS
CALGARY, ALBERTA, November 24, 2020 – 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 and nine-months ended September 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 $1,414,472 for the three months ended September 30, 2020 compared to $1,060,473 in 2019, an increase of 33%.
- Design Services revenue of $767,109 for the three months ended September 30, 2020 compared to $389,691 in 2019, up 97%.
- Gross margins continue to be strong at 65% and 66%, respectively for the third quarter 2020 and 2019.
- Net income of $27,042 for the quarter ended September 30, 2020 compared to a net loss of $219,941 in 2019.
- As at September 30, 2020, the Company had 36,610,507 common shares issued and outstanding.
“Renoworks has reached another milestone by achieving again a record revenue quarter.”
“Renoworks has reached another milestone by achieving again a record revenue quarter,” said Doug Vickerson, CEO of Renoworks. “Driven largely through our design services, Renoworks is meeting the demand of homeowners seeking to plan and design home construction and remodeling projects, and of contractors seeking to service that demand with the aid of our online network of building product visualization applications. This growth is consistent with the industry-wide growth trends we’ve observed in the residential construction and remodeling industry throughout 2020.”
Mr. Vickerson continued, “This increase in demand was a welcomed surprise to the industry. More and more consumers, adhering to stay-at-home orders, are addressing backlogged maintenance and upgrade needs for their homes, giving rise to the opportunity for manufacturers and contractors to sell their products and services with the help of a Renoworks visualization solution. For Renoworks, we continue to reinvest our resources into sustaining our high-quality delivery of our visualization solutions and developing our platform to address these opportunities for our clients and end-users.”
Financial results from operations for the third quarter 2020 with comparatives for 2019 are as follows:
| Three Months Ended September 30 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $1,414,472 | $1,060,473 |
| Gross Margin | $919,229 | $705,380 |
| Expenses | $839,985 | $906,049 |
| Income (Loss) | $27,042 | ($219,941) |
| Income (Loss) per share | $0.00 | ($0.01) |
| Adjusted EBITDA | $88,671 | ($134,911) |
| Weighted Average Shares Outstanding | 36,610,507 | 36,610,507 |
Financial results from operations for the year to date 2020 with comparatives for 2019 are as follows:
| Nine Months Ended September 30 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $3,866,467 | $3,259,339 |
| Gross Margin | $2,618,217 | $2,221,499 |
| Expenses | $2,364,072 | $2,561,444 |
| Income (Loss) | $193,165 | ($437,079) |
| Income (Loss) per share | $0.01 | ($0.01) |
| Adjusted EBITDA | $378,193 | ($209,025) |
| Weighted Average Shares Outstanding | 36,610,507 | 35,288,343 |
| Cash increase (used in) operations | $409,729 | ($262,085) |
The Company’s financial position as of September 30, 2020 with comparatives from 2019 is as follows:
| September 30, 2020 | December 31, 2019 | |
|---|---|---|
| Cash Balance | $834,204 | $500,751 |
| Accounts Receivable | $489,546 | $398,418 |
| Working Capital | $329,083 | $108,595 |
| Deferred Revenue | $1,069,341 | $1,019,140 |
| Long-term Liabilities | $341,900 | $471,531 |
| Shareholder's Equity (Deficiency) | $260,508 | ($10,942) |
| Deficit | ($7,735,687) | ($7,928,852) |
| Total Assets | $1,732,439 | $1,387,516 |
As talk of a second wave approaches in the ongoing COVID-19 pandemic, and despite these quarterly results, significant uncertainty remains. The extent to which COVID-19, and growing numbers of cases in both Canada and the United States, could impact the Company’s results will depend on future developments and remains unpredictable.
The Company continues to adhere to health and safety protocols implemented on March 17, 2020 and meets with the Board of Directors weekly to review the Company’s status. Voluntary work from home policy has been exercised by all staff to ensure safe and healthy distancing and reduce workplace cohort spread and exposure. Furthermore, no employees were laid off and no employee hours were reduced as at today’s date. The Company continues 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.
FOR FURTHER INFORMATION ON RENOWORKS, PLEASE CONTACT:
Doug Vickerson, CEO
Phone: 403-296-3880
E-mail: doug.vickerson@renoworks.com
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
*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 STATEMENT
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.
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