- Quarter over quarter organic revenue growth of 36% to
C$3.0 million
- Year over year revenue growth of 443%
- Year over year normalized income losses reduced to
C$132,368 from C$2.6 million
standalone
VANCOUVER, Aug. 15, 2019 /CNW/ - Universal mCloud
Corp. (TSX-V: MCLD) (OTCQB: MCLDF) ("mCloud" or the "Company"),
a leading provider of asset management solutions combining IoT,
cloud computing, artificial intelligence ("AI") and analytics,
today announced its financial results for the second quarter ended
June 30, 2019.
"In the second quarter of 2019, mCloud achieved many major
milestones that will further position us for ongoing rapid organic
growth," said Russ McMeekin, mCloud
President and CEO. "The completion of the Autopro acquisition,
closing of an oversubscribed debenture offering totaling near
C$23.5 million and our recently
announced full repayment of secured obligations to Flow Capital,
have allowed mCloud to enter into a new growth phase centered on
aggressively connecting new assets across all our lines of
business."
"Our increase in revenue quarter over quarter can be attributed
to our solid expansion strategy," McMeekin added. "The success we
are having in getting AssetCare™️ and our new assets and customers
connected to our AI-powered solutions at buildings, wind farms and
oil and gas facilities around the world will continue to lay the
foundation in our development of an industry standard integrated
offering."
Q2 2019 Financial Highlights
Revenue for the second quarter grew by 36% to C$3.0 million, compared to C$2.2 million in the first quarter of 2019. In
comparison to the second quarter of fiscal 2018, revenue has grown
443%.
mCloud Standalone
Q2 2019 Summary (all figures in Canadian dollars)
|
Revenues
|
$3,004,153
|
Gross
Margin
|
2,230,447
|
Selling, General and
Administrative Expenses
(SG&A)
|
813,587
|
Research and
Development
(R&D)
|
1,243,626
|
Sales and Marketing
(S&M)
|
1,569,120
|
Normalized
Income
|
$(132,368)
|
Acquisitions,
Technology Integration and New Market
Expansion
|
(1,784,104)
|
Other
Items
|
(106,344)
|
EBITDA
|
$(1,826,812)
|
The tables below summarize the second quarter 2019 standalone
operating performance of CSA Inc. ("CSA") and the standalone
operating performance of Autopro Automation Consultants Ltd.
("Autopro"). The Company completed its acquisition of Autopro in
the third quarter as announced on July 11,
2019. The Company has received conditional TSXV approval and
expects to sign a definitive agreement to acquire CSA by
September 2019, at which time it will
seek to obtain final approval.
CSA Standalone Q2
2019 Summary (all figures in Canadian dollars)
|
Revenues
|
$110,000
|
Normalized
Income
|
$4,000
|
Note: CSA's fiscal year ended June 30,
2019. The year-end cut off and adjustments are reflected in
these results.
Autopro Standalone
Q2 2019 Summary (all figures in Canadian dollars)
|
Revenues
|
$6,992,683
|
Normalized
Income
|
$1,328,610
|
Note: Autopro's fiscal year ended July
11, 2019. The above summary represents results based on an
arbitrary cut-off ended June 30,
2019.
Q2 2019 Operating Highlights
In the second quarter of 2019, the Company made advances across
all of its lines of business, in addition to substantial progress
in advancing its AssetCare technology stack.
The mCloud Smart Facilities segment closed a six-year
agreement with TELUS Commercial Real Estate to improve the energy
efficiency of their flagship office tower at Consilium Place in
Ontario, Canada, as announced on
April 11, 2019. In April 2019, the team completed its AssetCare
deployment for the Heiwado Shopping Center in Changsha, Hunan
Province, China, as part of
a nine-year AssetCare contract which closed in the first quarter of
2019 and was originally announced on January
8, 2019. Since completion, the Heiwado Shopping Center has
seen daily energy savings of 10% or more. Throughout the quarter,
the Smart Facilities team also continued to connect to numerous new
quick service restaurant and retail customers.
The mCloud Smart Energy segment completed two wind
analytics projects, one based in continental Europe and another based in China, using AssetCare to optimize wind
turbine performance improving availability and energy production.
Following the announcement made on March 26,
2019, mCloud and partner Britwind are working with a variety
of UK customers on Endurance E-series wind turbine upgrades that
include AssetCare connectivity.
The mCloud Smart Process segment saw rapid progress in
delivering AssetCare to oil and gas customers across Western Canada with the announcement of six
facilities connected to AssetCare within the first week of the
Company's acquisition of Autopro, as announced on July 22, 2019. These six facilities represent
C$1 million in annual recurring
revenue through the AssetCare Software-as-a-Service ("SaaS")
business model. The Company expects to reach over 14,000 similar
upstream, midstream, and downstream facilities at oil and gas
centres worldwide.
In AssetCare and technology development, the Company
announced the delivery of head-worn mobile AssetCare solutions for
oil and gas customers in partnership with RealWear on April 4, 2019, combining the features of an
AI-powered digital assistant with advanced 3D and mixed reality
capabilities to assist asset operators and maintainers in the
field. These capabilities have been positively received by
customers. Further AI advances were made in the second quarter,
including innovative AI-based approaches to curb energy waste and
offset peak surcharges at utility-defined periods of the day in
commercial spaces through the use of real-time occupancy and
performance data, taking advantage of the scalable computing
capabilities provided through mCloud's use of the Microsoft Azure
cloud.
Go-Forward Highlights
With the mCloud and Autopro teams combined, work is underway to
develop and deliver new AssetCare solutions capable of targeting
multiple asset classes at oil and gas facilities with rapid
customer uptake, expected to come from Autopro's existing customer
base. The Smart Energy team is continuing to seize opportunities to
connect wind turbines, with engagements in the works for turbines
based at wind farms in Canada and
the Inner Mongolia region of China. The Smart Facilities team is expanding
its early success in China with
SCN to bring AssetCare to over 1,000 shopping centres and 40,000
connectable assets similar to the Heiwado retail space in
Changsha. The Company also expects
to announce new AssetCare solutions and capabilities later this
year.
Conference Call
The Company is hosting a conference call to discuss the
financial results for the second quarter today at 5:30pm ET. The conference call will include
prepared remarks from Russ McMeekin,
Chief Executive Officer, and Chantal
Schutz, Chief Financial Officer. After the prepared remarks,
the Company will accept questions.
To access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 10 minutes prior to
the beginning of the call to ensure participation. The conference
call will be archived for replay by telephone until Thursday, August 22, 2019 at midnight (ET). To
access the archived conference call, dial 1-855-859-2056 and
enter the reservation number 1055348.
A live audio webcast of the conference call will be available at
https://bit.ly/2L4voxp. Please connect at least 15 minutes prior to
the conference call to ensure adequate time for any software
download that may be required to join the webcast. The
webcast will be archived at the above website for one year.
About Universal mCloud Corp.
Universal mCloud is creating a more efficient future with the
use of AI and analytics, curbing energy waste, maximizing energy
production, and getting the most out of critical energy
infrastructure. Through mCloud's AI-powered AssetCare™ platform,
mCloud offers complete asset management solutions to three distinct
segments: smart buildings, wind energy, and oil and gas. IoT
sensors bring data from connected assets into the cloud, where AI
and analytics are applied to maximize their performance.
Headquartered in Vancouver,
Canada, the mCloud family includes an ecosystem of operating
subsidiaries that delivers high-performance IoT, AI, 3D, and mobile
capabilities to customers, all integrated into AssetCare. With over
100 blue chip customers and more than 28,000 assets connected in
thousands of locations worldwide, mCloud is changing the way energy
assets are managed. For more information, visit
www.mcloudcorp.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company'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,
the completion of the Transaction, the future business prospects of
the Company and the potential revenue of the Company.
By identifying such information and statements in this manner,
the Company 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 the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks as discussed under the heading "Risk
Factors" on pages 29 to 46 of the Company's filing statement dated
October 5, 2017. Although the Company
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, the
Company has made certain assumptions. Although the Company 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, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither 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.
SOURCE Universal mCloud Corp.