Renoworks announces 8% increase in revenue, 29% increase in Design Services
CALGARY, ALBERTA, August 14, 2019 – Renoworks Software Inc. (TSXV: RW)(“Renoworks” or the “Company”), the leading visualizer for the home remodeling and new home construction industry, yesterday announced financial results for the second quarter ended June 30, 2019. 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 $1,136,384 for the three months ended June 30, 2019 compared to $1,048,167 in 2018, up 8%.
- Design service revenues increased by 29% to $433,708 in the three months ended June 30, 2019, compared to $336,703 for the same period in 2018.
- 38% of the first quarter’s revenue in 2019 is attributable to annual recurring customer contracts.
- Negative adjusted EBITDA* of $29,519 for the three months ended June 30, 2019, compared to positive adjusted EBITDA of $46,460 for the same fiscal period in 2018.
- Expenses for the second quarter of $799,161. Expenses were consistent with the same period in fiscal 2018.
- Net loss in Q2 was $100,182 versus a profit of $8,370 during the same quarter a year ago.
Doug Vickerson, CEO of Renoworks, stated, “I am very pleased to report a strong increase in revenue for the second quarter. In fact, this was the highest quarterly revenue ever reported by our Company. Revenues from our design services business unit continue to grow as we expand our customer base in all areas of our business. We maintain a positive outlook on our business, especially in light of our recent developments in A.I. auto-recognition, our continued partnership with Geomni in aerial imagery and 3D measurements and opportunities in multiple markets. We continue to gain industry recognition for our cutting-edge visualization solutions and are prepared to further build on our successes into 2020.”
Financial results from operations for the second quarter 2019 with comparatives for 2018 are as follows:
"We continue to gain industry recognition for our cutting-edge visualization solutions and are prepared to further build on our successes into 2020.”
| Three Months Ended June 30 | ||
|---|---|---|
| 2019 | 2018 | |
| Revenue | $1,136,384 | $1,048,167 |
| Gross Margin | $730,477 | $770,156 |
| Expenses | $799,161 | $758,863 |
| Loss | ($100,182) | $8,370 |
| Loss per share | ($0.01) | $0.00 |
| Adjusted EBITDA | ($29,519) | $46,460 |
| Weighted Average Shares Outstanding | 33,639,726 | 33,662,810 |
Financial results from operations for the year to date 2019 with comparatives for 2018 are as follows:
| Six Months Ended June 30 | ||
|---|---|---|
| 2019 | 2018 | |
| Revenue | $2,198,866 | $1,820,898 |
| Gross Margin | $1,516,119 | $1,287,597 |
| Expenses | $1,655,396 | $1,602,595 |
| Loss | $217,137 | $303,090 |
| Loss per share | $0.01 | $0.01 |
| Adjusted EBITDA | ($73,645) | ($227,629) |
| Weighted Average Shares Outstanding | 33,796,232 | 33,662,810 |
| Cash Used in Operations | $204,139 | $259,795 |
The Company’s financial position as of June 30, 2019 with comparatives from 2018 is as follows:
| June 30, 2019 | June 30, 2018 | |
|---|---|---|
| Cash Balance | $826,684 | $409,252 |
| Accounts Receivable | $544,564 | $600,558 |
| Long-term Liabilities | $53,727 | $35,158 |
| Shareholder's Equity (Deficiency) | $378,190 | ($307,980) |
| Deficit | ($7,459,894) | ($7,285,124) |
| Total Assets | $1,950,351 | $1,152,866 |
Stock Option Grant
During the month of August, the Company has also granted options to acquire an aggregate of 900,000 common shares at an exercise price of $0.30 per share to directors, officers and employees of the Company. The options expire August 11, 2024, vest equally over three years and are governed by the Company’s Stock Option Plan.
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 true-to-life virtual environment before committing to purchases and construction. Renoworks markets its technologies as innovative engagement tools 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
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).
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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