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CALGARY, April 16, 2020 /CNW/ - 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 three and twelve months ended December 31, 2019. 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 2019:
- Annual revenue of $4,264,087, up
11% over prior year.
- Quarterly revenue of $1,004,748
for the three months ended December 31,
2019 compared to $938,133 in
2018, an increase of 8%.
- Annual recurring customer contracts comprise 40% and 39%,
respectively for the fourth quarter and fiscal year 2019.
- Design Services revenue of $1,488,931 in 2019 versus $1,107,228 in 2018, an increase of 33%
- Gross margins continue to be strong at 70% and 69%,
respectively for the fourth quarter 2019 and the 12 months ended
December 2019.
- Net loss of $686,095 for 2019 as
we focus on continued investment in our platform solution to meet
client and market demand.
- As at December 31, 2019, the
Company had 35,280,792 common shares issued and outstanding.
"Once again we have achieved a record setting year in revenue,"
stated Doug Vickerson, CEO of
Renoworks. "Growth in our 6th consecutive quarter
reflects the increased adoption rate of our platform solutions by
new and existing clients. This is attributed by our continued
investments in our platform development and value-based approach to
delivering solutions tightly attuned to the needs of our
customers."
"Furthermore, the team's swift action to adapt to changing
circumstances have been crucial to our success in Q4 2019.
Evidential to this is our quick ability to integrate remote
measurements with provider EagleView, deploy our autorecognition
technologies as well as enhanced user experiences found only on the
Renoworks platform."
Mr. Vickerson added, "Today, the industry faces a new challenge
with COVID-19 and the industry finds itself having to shift to
virtual and remote-selling processes. As a remote measurement and
visualization platform, Renoworks looks forward to working
closely with our clients and continuing to support their goals in
2020 and beyond."
Financial results from operations for the fourth quarter 2019
with comparatives for 2018 are as follows:
|
Three Months Ended
December 31
|
2019
|
2018
|
Revenue
|
$1,004,748
|
$938,133
|
Gross
Margin
|
$704,304
|
$507,617
|
Expenses
|
$747,901
|
$677,377
|
Loss
|
$249,016
|
$233,091
|
Loss per
share
|
($0.01)
|
($0.01)
|
Adjusted
EBITDA
|
($167,818)
|
(211,629)
|
Weighted Average
Shares Outstanding
|
35,280,792
|
33,659,248
|
Financial results from operations for the fiscal year ended
December 31, 2019 with comparatives
for 2018 are as follows:
|
Twelve Months Ended
December 31
|
2019
|
2018
|
Revenue
|
$4,264,087
|
$3,843,239
|
Gross
Margin
|
$2,925,803
|
$2,612,279
|
Expenses
|
$2,857,758
|
$2,683,636
|
Loss
|
$686,095
|
$474,888
|
Loss per
share
|
$0.02
|
$0.01
|
Adjusted
EBITDA
|
($375,563)
|
($339,358)
|
Weighted Average
Shares Outstanding
|
35,280,792
|
33,659,248
|
Cash used in
operations
|
$391,653
|
$318,125
|
The Company's financial position as of December 31, 2019 with comparatives from 2018 is
as follows:
|
December 31,
2019
|
December 31,
2018
|
Cash
Balance
|
$500,751
|
$385,335
|
Accounts
Receivable
|
$398,418
|
$464,365
|
Working
Capital
|
$108,595
|
($94)
|
Deferred
Revenue
|
$1,019,140
|
$956,494
|
Long- term
liabilities
|
$471,531
|
$336,080
|
Shareholder's
Equity
(Deficiency)
|
($10,942)
|
($202,086)
|
Deficit
|
($7,928,852)
|
($7,242,757)
|
Total
Assets
|
$1,387,516
|
$1,158,998
|
The recently declared pandemic for the COVID-19 virus has caused
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. While the impact of COVID-19 is expected to be
temporary, the current circumstances are dynamic and the immediate
impact to the Company's business operations can't be reasonably
estimated at this time.
The extent to which the coronavirus could impact the Company's
results will depend on future developments, which are highly
uncertain and cannot be predicted, including new information which
may emerge concerning the severity of the coronavirus and actions
taken to contain the coronavirus or its impact, among
others.
Regarding COVID-19, management developed detailed mitigation
plans commencing March 17,
2020, and meets with the Board of Directors weekly to review
the Company's status.
Firstly, employee safety and health were paramount. Every
employee has worked remotely since March
15 and every employee is encouraged to exercise vigilance in
practicing safe and healthy habits at home. No employee nor their
family are known to have contracted the coronavirus as of today's
date. The transition to remote working proceeded as planned.
Further, there have been no known material negative impacts to
deadlines or productivity regarding customer service, software
development, or employee morale.
Finally, no employees were laid off and no employee hours were
reduced as at today's date as a result of COVID-19. We continue to
remotely interface with customers and monitor any cash flow impacts
that may arise.
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.
*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, realize a future revenue or other return on
technology and platform development in 2019, and continue without
material impact to our business and operations through the COVID-19
epidemic, 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.
SOURCE RenoWorks Software Inc.