Renoworks reports highest quarterly revenues in its history and posts quarter of profitability - design services revenues up 98%
CALGARY, ALBERTA, August 23, 2018 – 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 second quarter ended June 30, 2018. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
Quarterly financial and business highlights:
- Quarterly revenues of $1,048,167 for the three months ended June 30, 2018 compared to $818,9511 in 2017, up 28%.
- Design service revenues increased by 98% to $562,718 in the three months ended June 30, 2018, compared to $283,994 for the same period in 2017.
- 43% of the first quarter’s revenue in 2018 is attributable to annual recurring customer contracts.2
- Gross margins remained strong at 73%.
- Adjusted EBITDA* for the three months ended June 30, 2018, a profit of $46,460 compared to a loss of $104,1041 for the same fiscal period in 2017.
- Reduced long-term debt from $122,035 to $35,158.
- Expenses for the second quarter of $758,863. Expenses were consistent with the same period in fiscal 2017.
- Net profit in Q2 was $8,370 versus a loss of $45,7261 during the same quarter a year ago.
- As at June 30, 2018, the company had 33,662,810 common shares issued and outstanding.
Doug Vickerson, CEO of Renoworks, stated, “I am very pleased to report a strong increase in revenue and return to profitability for the second quarter. In fact, this was the highest quarterly revenue ever reported by our Company. This positive performance is a result of the growth-enabling investments we made in 2017 which are starting to bear fruit. Revenues from our design services business unit continue to grow as we expand our customer base in all areas of our business. We maintain a positive outlook on our business and the opportunity before us as we continue to gain industry recognition and solidify leadership in the space with our cutting-edge visualization solutions.”
Financial results from operations for the second quarter 2018 with comparatives for 2017 are as follows:
Financial results from operations for the year to date 2018 with comparatives for 2017 are as follows:
The Company’s financial position as of June 30, 2018 with comparatives from 2017 is as follows:
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.
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
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).
1 IFRS 15 transition adjustments
The 2017 financial results have been restated due to the Company’s conversion to IFRS 15 effective January 1, 2018. The Company has adopted the standard effective January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be restated.
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.
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