Bluedrop Releases Q1 Financial Results

St. John's, Newfoundland (FSCwire) - Bluedrop Performance Learning “Bluedrop” (TSX-V: BPL) today reported its financial results for the three months ended December 31, 2014.

Revenues for the three months ended December 31, 2014 were $4.3 million, up from $2.0 million, an increase of 113% on the same period in the previous year. Gross profit for the period was $1.6 million, an increase of $0.9 million over the three month period ended December 31, 2013. Pre-tax income was $0.2 million for the three month period compared to a loss of $2.8 million in the same period in the previous year, an improvement of $3.0 million. Included in the three month period ended December 31, 2013 were acquisition and restructuring costs of $1.7 million related to the acquisition and restructuring of Atlantis Systems Corp. (“Atlantis”), an acquisition by Bluedrop on December 31, 2013.  Included in the three month period ending December 31, 2014 was a gain of $0.5 million on the early and discounted pay out of long term debt. After tax profit for the period was $0.1 million compared to after tax loss of $2.1 million for the same period in the previous year.

The inclusion of revenues in the Bluedrop Training & Simulation business unit from the Atlantis acquisition resulted in greater revenues in this business unit during the three months ended December 31, 2014. As well, higher gross margins were realized in this business unit during the period due to cost reductions implemented in the previous quarters and improved utilization rates. Sales, marketing, general and administrative costs for the business unit remain at pre acquisition levels which reflects the cost savings achieved.

Combined sales and marketing and general and administrative expenses decreased by $0.3 million in the three month period compared with the same period last year. The combined sales and marketing and general administrative expense for the quarter were at a lower level than those comparable quarterly costs during the pre-acquisition period. Finance costs for the three month period were $0.4 million versus $0.1 million for the same period last year, an increase of $0.3 million. The increase in finance costs arises from the term debt taken on by Bluedrop to finance the Atlantis acquisition and related transaction costs.

For further details please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2014 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.

Commenting on the results and progress of Bluedrop, Founder and CEO Emad Rizkalla said “This is the first quarter where we can clearly demonstrate the synergies achieved in the Atlantis acquisition with cost reductions and improved revenues and margins.

During the quarter we paid off the ComVest term debt early, at a $0.5 million discount, and subsequently refinanced with longer term debt better suited to our working capital requirements.

The Atlantis acquisition required significant management resources last year and I could not be happier with the outcome of the hard work by the team. This year we will put more focus on the Learning Networks operations and its innovative SaaS based training management & delivery platform and new mobile enabled applications.”

About Bluedrop

Bluedrop Performance Learning (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Bluedrop is transforming the workplace by designing, developing and delivering practical, actionable and affordable training content that improves individual and overall performance of organizations.

For more information, visit www.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, including, without limitation, statements regarding the impact of the operational restructuring and future plans and objectives of Bluedrop, 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 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:

Lynn Hammond

Bluedrop Performance Learning Inc.

lynnhammond@bluedrop.com

709-570-5691

709-330-1260

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