Clear Blue Technologies International Inc. (“
Clear
Blue” and the “
Company”) (TSXV: CBLU)
(FRA: 0YA) (OTCQB: CBUTF), the Smart Off-Grid Company™, announces
its financial results for the quarter ended June 30, 2022
(“
Q2 2022”). A complete set of Financial
Statements and Management’s Discussion & Analysis
(“
MD&A”) has been filed at www.sedar.com. All
dollar amounts are denominated in Canadian dollars.
Key Financial Results
On a Trailing Four Quarter
(“TFQ”) basis:
- Revenue was $5,886,453, a 24%
decrease over the TFQ ending Q2 2021. The comparative period ending
June 30, 2021, benefited from higher-than-average revenue for Q1
2021 and Q4 2020 due to large initial deployments with a telecom
infrastructure operator in Africa. Normalized for these
deployments, TFQ revenue would have decreased by 6%;
- Gross profit percentage was up 6%
to 34% from 27% in the previous period. This represented a gross
profit of $1,984,809 as compared to $2,100,743 for the previous
period;
- Non-IFRS Adjusted EBITDA was
$(3,141,266) versus $(3,018,375) for the previous TFQ, a 4%
decrease. This slight decrease is mainly attributable to lower
sales, partially offset by a higher gross margin percentage.
For Q2 2022:
- Revenues were $782,101, down 3%
versus Q2 2022. Q2 is generally a seasonally low quarter for the
Company, and revenue was relatively flat with the prior year;
- Bookings were $ 2,104,309 up 37%
from $1,536,118 as of December 31, 2021;
- Recurring revenue comprised
$358,250 of the quarter’s revenue compared to $134,011 in Q2 2021,
a 167% increase. Recurring revenue is expected to increase yearly
as more units are deployed;
- Gross profit was $277,295 or 36%
compared to $304,283 or 38% for Q2 2021;
- Quarterly Non-IFRS Adjusted EBITDA
was $(989,498) versus $(833,495) in Q2 2021 a 19% decrease from Q2
2021. This was mostly a result of increased travel and
marketing-related expenses as customers returned to in-person
meetings.
At the end of the quarter, the Company also
closed a $4-million interest-free non-dilutive financing agreement
with the Government of Canada through the Federal Economic
Development Agency for Southern Ontario (“FedDev
Ontario”). The funds from this financing will begin with
an estimated $1.75M in Q3 2022 and the remainder facility over a
21-month period until March 2024.
Management Commentary and
Outlook
During Q2, a period of continued market
uncertainty, Clear Blue strengthened its balance sheet by nearly $6
million, which positions the Company to execute in the typically
seasonally stronger second half of the year. Clear Blue raised
funds through two tranches of financing totalling approximately
$1.6 million. This funding will contribute to R&D, and sales
and marketing. This financing will be drawn upon over a 21-month
period until March 2024. Repayment begins in 2025, continues to
2031, and carries 0% interest. This funding will help Clear Blue
bring its Pico-Grid product to market for use in satellite Wi-Fi
and IoT applications.
“Clear Blue continues to work with many
customers and partners for new opportunities and markets. Our new
Pico-Grid product, our partnerships in the satellite sector, and
our telecom offerings with our Smart Nano-Grid product have proven
the benefits of our innovative technology and value proposition,”
said Miriam Tuerk, CEO. “The current global slowdown is impacting
us in the short term, and we are ruthlessly managing expenses and
working on ever stronger cash positions to ensure we can continue
to execute on our plan. As we move into the fall, we are entering
our busy period with the remainder of the year, as in previous
periods, expected to show stronger sales.”
Conference Call
The Company will host a conference call to discuss its latest
financial results at 11:00 AM Eastern Time (Canada/U.S.) on
Thursday, August 25, 2022. Those interested can register
at https://us06web.zoom.us/webinar/register/WN_iR6lx6AHRAKz9hwWCO415w
For more information, contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.comwww.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies International
Clear Blue Technologies International, the Smart Off-Grid™
company, was founded on a vision of delivering clean, managed,
“wireless power” to meet the global need for reliable, low-cost,
solar and hybrid power for lighting, telecom, security, Internet of
Things devices, and other mission-critical systems. Today, Clear
Blue has thousands of systems under management across 37 countries,
including the U.S. and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB:
CBUTF)
Legal DisclaimerNeither TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Forward-Looking Statement
This press release contains certain
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable securities laws. Such
forward-looking information and forward-looking statements are not
representative of historical facts or information or current
condition, but instead represent only Clear Blue’s beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of Clear Blue's
control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or may contain
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "will continue", "will occur"
or "will be achieved". The forward-looking information contained
herein may include, but is not limited to, information concerning
financial results and future upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information and forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended.
In connection with the forward-looking
information and forward-looking statements contained in this press
release, Clear Blue has made certain assumptions. Although Clear
Blue believes that the assumptions and factors used in preparing,
and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed
on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information
and statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release. All subsequent written and oral forward-
looking information and statements attributable to Clear Blue or
persons acting on its behalf is expressly qualified in its entirety
by this notice.”
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
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