RENOWORKS ANNOUNCES RECORD FOURTH QUARTER AND FISCAL YEAR 2020 FINANCIAL RESULTS
CALGARY, ALBERTA, April 15, 2021 – 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 fourth quarter and fiscal 2020 year ended December 31, 2020. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
Financial and business highlights for the fourth quarter and fiscal 2020:
- Annual revenue of $5,132,109, up 20% over prior year.
- Quarterly revenue of $1,265,642 for the three months ended December 31, 2020 compared to $1,004,748 in 2019, an increase of 26%.
- Design Services revenue of $2,488,259 in 2020 versus $1,488,931 in 2019, an increase of 67%
- Design services revenue of $546,055 for the three months ended December 31, 2020 compared to $346,467 in 2019, up 59%.
- Gross margins continue to be strong at 66% and 67%, respectively for the fourth quarter 2020 and the 12 months ended December 2020.
- Net income of $123,582 in 2020 compared to a net loss of $686,095 for 2019.
- As at December 31, 2020, the Company had 36,610,507 common shares issued and outstanding.
"...we’ve delivered a record number of visualization solutions and services to what can only be described as a highly resilient industry...”
“This past year, and despite the on-going pandemic, we’ve delivered a record number of visualization solutions and services to what can only be described as a highly resilient industry,” said Doug Vickerson, CEO of Renoworks. “The record performance of this year’s financials and another record quarter is again the result of the extraordinary work and commitment of the Renoworks team to deliver solutions that address the vital needs of our clients.”
Mr. Vickerson added, “Our consistent investments in the Company’s infrastructure, innovative technologies, platform solutions and services such as Design Service and AI Autorecognition, ensures our position in the market as a competitive and innovative force that our clients can rely on. I am extremely proud of our efforts as a Company and look forward to addressing future opportunities that will contribute to our continued growth.”
Financial results from operations for the fourth quarter 2020 with comparatives for 2019 are as follows:
| Three Months Ended December31 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $1,265,642 | $1,004,748 |
| Gross Margin | $839,423 | $704,304 |
| Expenses | $604,570 | $747,901 |
| Income (Loss) | ($69,583) | ($249,016) |
| Income (Loss) per share | ($0.00) | ($0.01) |
| Adjusted EBITDA | ($22,301) | ($167,818) |
| Weighted Average Shares Outstanding | 36,610,507 | 36,610,507 |
Financial results from operations for the year ended December 31, 2020 with comparatives for 2019 are as follows:
| Twelve Months Ended December 31 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $5,132,109 | $4,264,087 |
| Gross Margin | $3,457,640 | $2,925,803 |
| Expenses | $2,404,848 | $2,857,758 |
| Income (Loss) | $123,582 | ($686,095) |
| Income (Loss) per share | $0.00 | ($0.02) |
| Adjusted EBITDA | $355,892 | ($375,563) |
| Weighted Average Shares Outstanding | 36,610,507 | 35,280,792 |
| Cash provided (used in) operations | $181,524 | ($391,653) |
The Company’s financial position as of December 31, 2020 with comparatives from 2019 is as follows:
| December 31, 2020 | December 31, 2019 | |
|---|---|---|
| Cash Balance | $523,555 | $500,751 |
| Accounts Receivable | $617,161 | $398,418 |
| Working Capital | $276,098 | $108,595 |
| Deferred Revenue | $970,835 | $1,019,140 |
| Long-term Liabilities | $344,434 | $471,531 |
| Shareholder's Equity (Deficiency) | $203,577 | ($10,942) |
| Deficit | ($7,805,270) | ($7,928,852) |
| Total Assets | $1,534,171 | $1,387,516 |
The COVID-19 pandemic continues to cast significant future uncertainty. The continued spread of COVID-19 in North America and globally could have an adverse impact on the company’s operations and financial results. The Company’s results have been positively impacted by the pandemic due to the increase in home renovation activity. However, continued quarantines, labor shortages or other disruptions for extended periods of time, or at the end of those measures, may adversely affect the Company’s revenues, ability to provide services, operating results or the ability to raise funds through debt or equity. The extent to which the pandemic could impact the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, and will include new information which may emerge concerning the severity of the pandemic and actions taken to contain the coronavirus or its impact, among other unpredictable events.
Regarding COVID-19, management developed detailed mitigation plans commencing March 17, 2020, and meets with the Board of Directors weekly to review the Company status. Firstly, employee safety and health were paramount. Every employee has worked remotely since March 15 and every employee reports vigilance in practicing safe and healthy habits at home. Further, there have been no known negative impacts to deadlines or productivity with regard to customer service, software development, or employee morale.
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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