Annual revenue up $6.1M compared to prior year
CALGARY, Feb. 4, 2019 /CNW/ - Blackline Safety Corp. (TSX
Venture: BLN), a global leader of gas detection and connected
safety solutions, announced record fourth quarter and annual
results for its fiscal year ended October
31, 2018.
"Fiscal 2018 was our first complete year of promoting our G7
connected safety solutions to a global base of industries and
businesses with diverse requirements," said Cody Slater, Blackline CEO and Chairman.
"Blackline's new G7 portfolio drove growth throughout the year,
seeing the Company generate total revenue 53% above the prior year.
More importantly, looking at our recurring service revenue, we open
2019 with a run-rate of over $14.4M —
equivalent to 81% of last year's total revenue."
Speaking about Blackline's growth, Mr. Slater said, "During
2018, Blackline saw growth through all markets as the G7 product
was rolled out throughout the world. This growth was particularly
impressive in Europe, up 151% and
124% in the United States, driven
by G7 adoption in the utility and global industrial sectors. The
success we saw here can only be strengthened as we invest in the
growth of our sales and distribution network and continue to invest
in the expansion of our product line into 2019."
Addressing product development, Mr. Slater said, "During 2018,
Blackline continued to strategically invest in technology
development to maintain our leading position in the connected
safety sector that we created with G7. Extending our competitive
lead, we released a new photoionization detector, a new pump
cartridge for confined space entry, an industry-leading data
analytics platform and new push-to-talk capability that enables
workforces to use G7c like a walkie-talkie."
"Throughout 2019, we will see new products developed by our
in-house team, further extending our leadership position in the
connected safety marketplace. We will also continue expanding our
distribution network that helped to achieve strong growth beyond
Canada, further investing in
the United States and Europe while also broadening our focus to
other international regions. As we look to the fall, Blackline will
introduce G7 Exo, our new area monitoring product line that will be
sold alongside our employee wearables, substantially increasing the
sales opportunities across each of our industrial sectors."
Fourth quarter highlights
- Fourth quarter total revenue of $5.5M, a 30% increase over the prior year's
Q4
- Fourth quarter service revenue, including lease revenue, of
$3.6M, a 69% increase over the prior
year's Q4
- Fourth quarter Blackline Complete lease revenue of $0.9M, a 79% increase over the prior year's
Q4
- Fourth quarter revenue grew by 195% in the United States and by 82% in Europe over the prior year's Q4
- To support company growth, closed a bought deal private
placement for net proceeds of $29.4M,
raising cash and short-term investments to $39.7M at October 31,
2018
- Announced a $1.9M lease agreement
with a Canadian energy company in Q4
- Launched G7c push-to-talk that enables teams to collaborate
with each other like a walkie-talkie
- Announced a new area monitoring system that is scheduled for
release in 2019
- Ranked on the PROFIT 500 list of fastest-growing companies for
the sixth consecutive year
- G7 Insight named Internet of Things and Industrial Hygiene —
Gas Monitors winner by OH&S magazine
Annual highlights
- Annual total revenue of $17.8M, a
53% increase over the prior year
- Annual product revenue of $6.5M,
a 53% increase over the prior year
- Annual service revenue, including lease revenue, of
$11.3M, a 53% increase over the prior
year
- Annual Blackline Complete lease revenue of $2.7M, a 93% increase over the prior year
- Annual revenue in the United
States increased by 124% and in Europe by 151% over the prior year
- Contracted future service revenue (lease commitments) grew to
$8.0M at October 31, 2018, an 82% increase over the prior
year
Financial Highlights
The subsequent values in this release are in thousands, except
for percentages and per share data.
|
Quarter Ended October
31
|
Year Ended October
31
|
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Revenue
|
$5,544
|
$4,277
|
30%
|
$17,772
|
$11,619
|
53%
|
Gross
Margin
|
$2,504
|
$1,880
|
33%
|
$7,731
|
$5,122
|
51%
|
Gross Margin
Percentage
|
45%
|
44%
|
1%
|
44%
|
44%
|
0%
|
Net Loss
|
($2,445)
|
($2,678)
|
9%
|
($9,002)
|
($8,565)
|
(5%)
|
Net Loss excluding
stock-
based compensation
expense
|
($2,282)
|
($1,800)
|
(27%)
|
($7,321)
|
($6,947)
|
(5%)
|
Adjusted
EBITDA
|
($677)
|
($621)
|
(9%)
|
($1,096)
|
($1,959)
|
44%
|
Loss per
Share
|
($0.06)
|
($0.08)
|
|
($0.23)
|
($0.27)
|
|
Key Financial Information
Annual revenue for fiscal 2018 was $17,772 compared to $11,619 in the prior year, resulting in an
increase of 53% or $6,153. Service
revenue was $11,301, an increase of
53% compared to $7,386 in the year
prior. These increases were driven by sales of Blackline's
connected safety hardware of $6,471
in the year and by the continuing adoption of the Blackline
Complete leasing program that eliminates up-front capital costs and
provides customers with a comprehensive safety monitoring program
for a monthly fee during a 36-month term.
Fourth quarter revenue was $5,544,
an increase of 30% from $4,277 in the
comparable quarter of the prior fiscal year. Revenue in
the United States increased by
195% and in Europe by 82%
respectively with these regions continuing their strong growth
during fiscal 2018.
Product revenue during the fourth quarter was $1,931 with an additional 707 Blackline G7
connected safety products being delivered through the Blackline
Complete leasing program in this period, an equivalent of
$1,021 in hardware sales. Had
customers purchased these units rather than adopting Blackline's
lease program, product revenue would have been approximately
$2,952, excluding the impact of price
discounting.
Service revenue was $3,613, an
increase of 69% compared to $2,139 in
the same period last year, attributed to new service activations by
end customers from product sales, development acceleration program
revenues and increased adoption of the Blackline Complete leasing
program with leasing revenues increasing 79%
quarter-over-quarter.
Contracted future service revenue, representing the current
value of future Blackline Complete lease commitments, was
$7,959 as at October 31, 2018, an increase of 82% from the
prior year-end.
Gross margin for the fourth quarter was $2,504 compared to $1,880 in the comparable quarter of the prior
year, an increase of 33%. This increase was driven by the growth of
Blackline's service revenue year-over-year.
Adjusted EBITDA was $(677) for the
fourth quarter compared to $(621) in
the comparable quarter of the prior year. The decrease in the
Adjusted EBITDA for the quarter was attributable to increased
selling, general and administrative expenses, offset by an increase
in revenues and gross margin quarter-over-quarter.
Blackline's audited consolidated financial statements and
management's discussion and analysis on financial condition and
results of operations for the year ended October 31, 2018 are available at www.sedar.com.
All results are reported in Canadian dollars. To learn more about
Blackline Safety, visit www.blacklinesafety.com and follow
Blackline on Twitter @blacklinesafety.
About Blackline Safety: Blackline Safety is a
global connected safety technology leader. Providing comprehensive
live-monitoring and wireless gas detection, we help teams working
in hazardous environments respond to emergencies in real-time and
manage efficient evacuations, accounting for everyone's safety
along the way. With millions invested in technology research and
development, Blackline Safety is recognized for quality and
innovation. Our talented team of designers and engineers create and
manufacture in-house — from wearable technology and personal gas
detectors to cloud-hosted infrastructure and web-based interfaces
for global industry. We deliver the world's first turn-key,
work-anywhere connected safety monitoring solution with gas
detection, 3G wireless, satellite communications, two-way
speakerphone, employee messaging and live monitoring to meet the
demanding safety challenges of organizations in over 200 countries.
For more information, visit www.BlacklineSafety.com.
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Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Blackline Safety Corp.