St. John's, Newfoundland (FSCwire) - Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPL) today reported its audited consolidated financial results for the year ended September 30, 2014 (including nine months of revenues of Atlantis Systems Corp. (“Atlantis”) and associated acquisition related costs).
Revenues for the year ended September 30, 2014 were $15,393,315 up from $11,527,765, an increase of 34 %. Gross profit for the year was $6,075,972 up from $5,391,955, an increase of 13%. Pre-tax loss for the year was $4,406,985 including transaction and restructuring costs of $2,112,203 versus a pre-tax loss in the prior year of $2,300,416, an increase of $2,106,569. After tax loss for the period was $3,919,982 as compared to a loss of $1,723,610 in the prior period. For further details, please see the Financial Statements and Management’s Discussion and Analysis for the year ended September 30, 2014, which are available on the Company’s web site at http://www.bluedrop.com or on SEDAR at http://www.sedar.com.
For the post acquisition nine-month period ended September 30, 2014, consolidated revenues were $13,356,117, an increase of 48%. Consolidated gross profit was $5,291,823 for the same period, an increase of 23%.
The Company acquired Atlantis on December 31, 2013 by way of a Plan of Arrangement for a cash consideration of $1,000,000 and the assumption of $2,500,000 in term debt. The Company financed the cash component of the purchase price from the proceeds of a $3,000,000 unsecured convertible debenture. The Company also entered into in a royalty agreement raising an additional $1,000,000 during the period to help fund working capital. The Company paid down $1,000,000 of the term debt from the Atlantis acquisition during the year and subsequent to year end the Company made an early payment, at a discount of $470,422, to pay out the remaining $1,500,000 of debt and accrued interest.
The acquisition related costs during the period totaled $2,112,203 including; legal fees, advisory services, restructuring costs and employee termination benefits associated with the acquisition. The Company relocated the Atlantis and Bluedrop (Defence and Aerospace) staff to one location in Halifax, Nova Scotia and closed its Brampton, Ottawa, Dartmouth and Fredericton offices. The Company announced that the target cost reductions of $3.0 million annually expected from the integration of Atlantis were exceeded by year end.
The Company also announced the re-alignment of its two operating business units on October 1, 2014 to focus on two areas: (i) the development and delivery of training programs, and simulation technologies for the defence and aerospace industry( including the acquisition and the related Bluedrop defence and aerospace business) and (ii) the development and delivery of its SaaS Bluedrop Learning Networks platform and programs for extended enterprise solutions that target workforce development and channel/supplier training for corporate users (formerly called "CoursePark"). The new corporate entities are Bluedrop Training & Simulation Inc. and Bluedrop Learning Networks Inc., both wholly-owned subsidiaries of Bluedrop. The restructuring has been undertaken for operating efficiencies, tax planning and future corporate initiatives and will not have any impact on the overall consolidated operations of Bluedrop or the rights or interests of shareholders.
Commenting on the overall results and progress for the year, founder and CEO Emad Rizkalla said, “This was clearly a transformative year for Bluedrop and a challenging year for the whole management team. While many difficult business decisions had to be made and staffing levels had to be aligned with the combined businesses, we are very pleased with the end result. We maintained every major customer related to the Atlantis acquisition, exceeded our cost reduction targets, and increased our business with many of the customers. At the same time we made great strides in transforming the Learning Networks business to a recurring Software as a Service (SaaS) model. We expect that the financial results going forward will demonstrate these cost savings and synergies resulting from the Atlantis acquisition. ”
About Bluedrop
Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Bluedrop is transforming the workplace globally by designing, developing and delivering practical, actionable and affordable training content that improves individual and overall performance of organizations. For more information, visitwww.bluedrop.com.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2014. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Media contact:
Bernie Beckett
Chief Financial Officer
Bluedrop Performance Learning Inc.
berniebeckett@bluedrop.com
Phone: 709-739-4938
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/bluedrop01282015.pdfSource: Bluedrop Performance Learning Inc. (TSX Venture:BPL) http://www.bluedrop.com
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