Renoworks announces 37% increase in revenue, 41% increase in Design Services
CALGARY, ALBERTA, May 30, 2019 – Renoworks Software Inc. (TSXV: RW)(“Renoworks” or the “Company”), the leading visualizer for the home remodeling and new home construction industry, yesterday announced financial results for the first quarter ended March 31, 2019.
Financial and business highlights for the first quarter 2019:
- Quarterly revenue of $1,062,482 for the three months ended March 31, 2019 compared to $772,731 in 2018, an increase of 37%.
- Design services revenue of $319,066 for the three months ended March 31, 2019 compared to $226,014 in 2018, up 41%.
- Net loss of $116,955 for the three months ended March 31, 2019 compared to a net loss of $311,459 for the same period in 2018. 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 March 31, 2019, the Company had 33,854,477 common shares issued and outstanding.
“This is the first $1 million opening quarter for the Company, driven primarily by our increased design services revenue.”
“We are pleased to announce a strong start to our fiscal year with a 37% increase in our first quarter revenues,” stated Doug Vickerson, CEO of Renoworks. “This is the first $1 million opening quarter for the Company, driven primarily by our increased design services revenue.”
Mr. Vickerson added, “This is a clear indication that our Company’s growth strategy is progressing extremely well, and I am pleased by the results. We have made substantial headway in our upgraded technology platform which has resonated with industry stakeholders. Furthermore, new opportunities continue to present themselves for our core technologies in new markets which we are actively pursuing.”
Financial results from operations for the first quarter 2019 with comparatives for 2018 are as follows:
| Three Months Ended March 31 | ||
|---|---|---|
| 2019 | 2018 | |
| Revenue | $1,062,482 | $772,731 |
| Gross Margin | $785,641 | $517,441 |
| Expenses | $856,234 | $843,939 |
| Loss | $116,955 | $311,459 |
| Loss per share | $0.01 | $0.01 |
| Adjusted EBITDA | ($44,517) | ($274,089) |
| Weighted Average Shares Outstanding | 33,854,477 | 33,562,810 |
The Company’s financial position as of March 31, 2019 with comparatives from 2018 is as follows:
| March 31, 2019 | Marchr 31, 2018 | |
|---|---|---|
| Cash Balance | $203,428 | $633,532 |
| Accounts Receivable | $556,456 | $386,228 |
| Deferred Revenue | $1,090,216 | $1,224,982 |
| Long-term Liabilities | $285,548 | $55,389 |
| Shareholder's Equity (Deficiency) | ($290,552) | ($356,368) |
| Deficit | ($7,359,712) | ($7,293,493) |
| Total Assets | $1,392,203 | $1,171,159 |
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 true-to-life 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 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
For investor information for Renoworks please contact:
Rob Gamley
Phone: 604-689-7422
Email: rob@contactfinancial.com
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC, Canada V7Y 1G5
*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, 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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