RENOWORKS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2017 FINANCIAL RESULTS – RECORD ANNUAL REVENUE
Renoworks reports record annual revenue and fifth consecutive quarter of record revenue
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CALGARY, April 18, 2018 /CNW/ – Renoworks Software Inc. (TSXV: RW)(“Renoworks” or the “Company), the leading visualizer for the home remodeling and construction industry, today announced financial results for the fourth quarter ended December 31, 2017.
Financial and business highlights for the fourth quarter and fiscal 2017:
- Fifth consecutive quarter of record revenue.
- Record annual revenue of $3,074,264, up 10% over prior year.
- Record quarterly revenue of $839,457 for the three months ended December 31, 2017 compared to $726,957 in 2016, an increase of 15%.
- Annual recurring revenue of $1,669,336 compared to 1,553,712 for the same period in 2016, an increase of 7%.
- Annual recurring customer contracts comprise 48% and 54%, respectively for the fourth quarter and fiscal 2017.
- Design Services revenue of $593,756 in 2017 versus $106,079 in 2016, an increase of 550%
- Design services revenue of $151,367 for the three months ended December 31, 2017 compared to $20,341 in 2016, up 744%.
- Gross margins continue to be strong at 66% and 70%, respectively for the fourth quarter 2017 and the 12 months ended December 2017.
- Working capital of $662,279 for the 12 months ended December 31, 2017, increased from $328,795 for the same period in 2016, an increase of 101%
- Long-term liabilities reduced by $85,620 from $163,780 in 2016 to $78,160 at December 31, 2017.
- Net loss of $836,510 for 2017. As Renoworks’ growth strategy progresses, it remains flexible to invest in the recruitment of qualified personnel in response to increased demand and to further the Company’s efforts to fulfill its long-term strategies of software development, increased marketing and financial growth.
- As at December 31, 2017, the Company had 33,562,810 common shares issued and outstanding.
Doug Vickerson, CEO of Renoworks, stated, “Not only have we strengthened our balance sheet, but also we have achieved record growth in revenue for five consecutive quarters and see continued growth in 2018. Alongside this growth, we have been investing in the Company’s infrastructure, R&D, technology and marketing to lay the foundation to scale and support further growth. We have made significant progress in our design services segment which contributed to strong top-line results and I’m proud of the job our team has done in growing that business line aggressively. Mr. Vickerson continued, “Although we had a net loss it was necessary to add key personnel in response to increased demand for our services and to position Renoworks to meet the substantial opportunities that exist in the marketplace.
Mr. Vickerson added, “As the transformation in the industry around the entire remodeling process from project inception to completion takes hold, our focus will be on dominating the essential design segment in the value chain surrounding these projects to further increase sales. We are experiencing increased demand from product manufacturers to join the Renoworks platform across a multitude of categories and are moving quickly to meet the demand for our core technology.”
Financial results from operations for the fourth quarter 2017 with comparatives for 2016 are as follows:
Three Months Ended December 31
Loss per share
Weighted Average Shares Outstanding
Financial results from operations for the year ended December 31, 2017 with comparatives for 2016 are as follows:
Twelve Months Ended December 31
Loss per share
Weighted Average Shares Outstanding
Cash used in operations
The Company’s financial position as of December 31, 2017 with comparatives from 2016 is as follows:
December 31, 2017
December 31, 2016
Long- term liabilities
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 innovative engagement tools and generates revenues from four main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services and Renoworks SDK (Software Development Kit). For more information, visit: www.renoworks.com and www.renoworkspro.com.
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 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.
For further information on Renoworks please contact:
Doug Vickerson, CEO
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
For investor information for Renoworks please contact:
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC, Canada V7Y 1G5