RENOWORKS ANNOUNCES DESIGN SERVICES GROWTH OF 26%
CALGARY, ALBERTA, November 28, 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 third quarter ended September 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 $1,060,473 for the three months ended September 30, 2019 compared to $1,084,208 in 2018.
- Design service revenues increased by 26% to $389,691 in the three months ended September 30, 2019, compared to $308,899 for the same period in 2018.
- 39% of the third quarter’s revenue in 2019 is attributable to annual recurring customer contracts.
- Adjusted EBITDA* for the three months ended September 30, 2019, a loss of $134,100 compared to a profit of $99,901 for the same fiscal period in 2018.
- Expenses for the second quarter of $906,049. Expenses increased by 23% compared with the same period in fiscal 2018.
- Net loss for the fiscal quarter was $219,941 versus a profit of $61,292 during the same quarter a year ago.
- As of September 30, 2019, the company had 36,610,507 common shares issued and outstanding.
“Revenues from our design services business unit have grown 26% over last year, a testament of our strong position and ability to deliver visualization experiences that matter to the industry,” stated Doug Vickerson, CEO of Renoworks. “By continuing to invest our resources into future-forward technologies, and in their scalability, we can deliver deep value that continues to translate into customer success and recurring revenue.”
Mr. Vickerson continues, “For example, we’ve commercialized our A.I auto-recognition technologies and are expanding its ability to detect other building product categories. This is resonating positively with our customers and they are readying for adoption.”
“Our platform continues to evolve into a vital tool-chain that solves the industry’s value chain struggles. We look forward to revealing more of our technology developments and strategic initiatives that will reaffirm our commitment to advancing the industry as a whole in 2020.”
Financial results from operations for the third quarter of 2019 with comparatives for 2018 are as follows:
"...we’ve commercialized our A.I auto-recognition technologies and are expanding its ability to detect other building product categories. This is resonating positively with our customers and they are readying for adoption.”
| Three Months Ended September 30 | ||
|---|---|---|
| 2019 | 2018 | |
| Revenue | $1,060,473 | $1,084,208 |
| Gross Margin | $705,380 | $817,065 |
| Expenses | $906,049 | $731,994 |
| Profit (Loss) | ($219,941) | $61,292 |
| Profit (Loss) per share | ($0.01) | $0.00 |
| Adjusted EBITDA | ($134,100) | $99,901 |
| Weighted Average Shares Outstanding | 36,610,507 | 33,712,810 |
Financial results from operations for the year to date 2019 with comparatives for 2018 are as follows:
| Nine Months Ended September 30 | ||
|---|---|---|
| 2019 | 2018 | |
| Revenue | $3,259,339 | $2,905,106 |
| Gross Margin | $2,221,499 | $2,104,662 |
| Expenses | $2,561,444 | $2,334,588 |
| Profit (Loss) | ($437,079) | ($241,796) |
| Profit (Loss) per share | $0.01 | $0.01 |
| Adjusted EBITDA | ($207,745) | ($127,728) |
| Weighted Average Shares Outstanding | 35,288,343 | 33,712,810 |
| Cash Used in Operations | $262,085 | $135,661 |
The Company’s financial position as of September 30, 2019, with comparatives from 2018 is as follows:
| September 30, 2019 | Septermber 30, 2018 | |
|---|---|---|
| Cash Balance | $719,226 | $501,201 |
| Accounts Receivable | $516,920 | $654,516 |
| Long-term Liabilities | $234,714 | $8,111 |
| Shareholder's Equity (Deficiency) | $198,161 | ($211,224) |
| Deficit | ($7,679,836) | ($7,223,830) |
| Total Assets | $1,769,820 | $1,321,434 |
During the fiscal quarter ended September 30, 2019, the Company has also issued 1,130,000 stock options to directors, officers, and employees of the Company.
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
*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 the 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.
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