RENOWORKS ANNOUNCES RECORD SECOND QUARTER 2020 FINANCIAL RESULTS
CALGARY, ALBERTA, August 5, 2020 – Renoworks Software Inc. (TSXV: RW) (“Renoworks” or the “Company), the leading end-to-end visualization software platform for the building construction industry, today announces financial results for the three and six months ended June 30, 2020. 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 $1,334,140 for the three months ended June 30, 2020, compared to $1,136,384 in 2019, an increase of 17%.
- Design services revenue of $696,692 for the three months ended June 30, 2020, compared to $433,708 in 2019, up 60%.
- Gross margins continue to be strong at 69% and 64%, respectively, for the second quarter of 2020 and 2019.
- Net income of $236,790 for the quarter ended June 30, 2020, compared to a net loss of $100,182 in 2019.
- As of June 30, 2020, the Company had 36,610,507 common shares issued and outstanding.
“Renoworks is proud to announce another record revenue quarter,” stated Doug Vickerson, CEO of Renoworks. “Our visualization software platform continues to see demand from the industry who have accelerated their digital adoption to adjust to today’s new online end-user.”
“Renoworks Design Services business unit continues its growth, achieving a 60% increase in revenue over the same quarter last year.” Mr. Vickerson continued, “The quarter also resulted in net income of $236,790.
Financial results from operations for the second quarter of 2020 with comparatives for 2019 are as follows:
“Our visualization software platform continues to see demand from the industry who have accelerated their digital adoption to adjust to today’s new online end-user.”
| Three Months Ended June 30 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $1,334,140 | $1,136,384 |
| Gross Margin | $925,384 | $730,477 |
| Expenses | $661,360 | $799,191 |
| Income (Loss) | $236,790 | ($100,182) |
| Income (Loss) per share | $0.01 | ($0.01) |
| Adjusted EBITDA | $299,244 | ($29,127) |
| Weighted Average Shares Outstanding | 36,610,507 | 33,639,4726 |
Financial results from operations for the year to date 2020 with comparatives for 2019 are as follows:
| Six Months Ended June 30 | ||
|---|---|---|
| 2020 | 2019 | |
| Revenue | $2,451,994 | $2,198,866 |
| Gross Margin | $1,698,987 | $1,516,119 |
| Expenses | $1,524,088 | $1,655,396 |
| Income (Loss) | $166,123 | ($217,137) |
| Income (Loss) per share | $0.01 | ($0.01) |
| Adjusted EBITDA | $291,829 | ($73,646) |
| Weighted Average Shares Outstanding | 36,610,507 | 33,796,232 |
| Cash increase (used in) operations | $102,881 | ($204,139) |
The Company’s financial position as of March 31, 2019, with comparatives from 2019 is as follows:
| June 30, 2020 | December 31, 2019 | |
|---|---|---|
| Cash Balance | $554,782 | $500,751 |
| Accounts Receivable | $811,381 | $398,418 |
| Working Capital | $288,052 | $108,595 |
| Deferred Revenue | $1,222,510 | $1,019,140 |
| Long-term Liabilities | $391,729 | $471,531 |
| Shareholder's Equity (Deficiency) | $206,361 | ($10,942) |
| Deficit | ($7,762,729) | ($7,928,852) |
| Total Assets | $1,815,434 | $1,387,516 |
Regarding COVID-19, the Company remains diligent in its mitigation plans to ensure the safety and health of its employees. Employees continue to work from home; however, the Company has begun allowing some staff to return to Renoworks offices voluntarily. Various precautions have been taken to ensure a safe working environment considerate to social distancing measures and concerns.
Renoworks continues to monitor the current circumstance as new information emerges.
The Canadian government has announced various programs, one of which was the Canadian Emergency Wage Subsidy (CEWS) program, to assist companies experiencing significant impacts as a result of the COVID-19 pandemic. To June 30, 2020, this program provides a non-repayable subsidy of 75% of employee wages up to a maximum of $847 per eligible employee per program week for eligible employers. The Company has received benefits from this non-repayable subsidy. To date, the Company has received $235,938 in wage subsidies from this program for the period March 15 to May 11, 2020. Amounts received are recorded as a reduction to general and administrative expenses of the financial statements for the period ended June 30, 2020. There can be no assurances that the Company will qualify for additional subsidies under this program.
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.
For further information on Renoworks, please contact:
Doug Vickerson, CEO
Phone: 403-296-3880
E-mail: doug.vickerson@renoworks.com
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
*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 revenue or other return on technology and platform development, capitalize on actual or perceived opportunities in the marketplace, or adequately cope with the impact of COVID-19, 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.
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