Mr. Doug Vickerson reports
RENOWORKS ANNOUNCES 2019 SECOND QUARTER FINANCIAL RESULTS, HIGHEST IN COMPANY'S HISTORY; ISSUES STOCK OPTIONS
Renoworks Software Inc. has released its financial results for the second quarter ended June 30, 2019. 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 $1,136,384 for the three months ended June 30, 2019 compared to $1,048,167 in 2018, up 8%.
Design service revenues increased by 29% to $433,708 in the three months ended June 30, 2019, compared to $336,703 for the same period in 2018.
38% of the first quarter's revenue in 2019 is attributable to annual recurring customer contracts.
Negative adjusted EBITDA* of $29,519 for the three months ended June 30, 2019, compared to positive adjusted EBITDA of $46,460 for the same fiscal period in 2018.
Expenses for the second quarter of $799,161. Expenses were consistent with the same period in fiscal 2018.
Net loss in Q2 was $100,182 versus a profit of $8,370 during the same quarter a year ago.
Doug Vickerson, CEO of Renoworks, stated, "I am very pleased to report a strong increase in revenue for the second quarter. In fact, this was the highest quarterly revenue ever reported by our Company. 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, especially in light of our recent developments in A.I. auto-recognition, our continued partnership with Geomni in aerial imagery and 3D measurements and opportunities in multiple markets. We continue to gain industry recognition for our cutting-edge visualization solutions and are prepared to further build on our successes into 2020."
Financial results from operations for the second quarter 2019 with comparatives for 2018 are as follows:
Three Months Ended June 30
Revenue $1,136,384 $1,048,167
Gross Margin $730,477 $770,156
Expenses $799,161 $758,863
Profit (Loss) ($100,182) $8,370
Profit (Loss) per share ($0.01) $0.00
Adjusted EBITDA ($29,519) $46,460
Weighted Average Shares Outstanding33,639,726 33,662,810
Financial results from operations for the year to date 2019 with comparatives for 2018 are as follows:
Six Months Ended June 30
Revenue $2,198,866 $1,820,898
Gross Margin $1,516,119 $1,287,597
Expenses $1,655,396 $1,602,595
Loss $217,137 $303,090
Loss per share $0.01 $0.01
Adjusted EBITDA ($73,645) ($227,629)
Weighted Average Shares Outstanding33,796,232 33,662,810
Cash used in operations $204,139 $259,795
The Company's financial position as of June 30, 2019 with comparatives from 2018 is as follows:
June 30, 2019June 30, 2018
Cash Balance $826,684 $409,252
Accounts Receivable $544,564 $600,558
Long- term debt $53,727 $35,158
Shareholder's Equity$378,190 ($307,980)
Deficit ($7,459,894) ($7,285,124)
Total Assets $1,950,351 $1,152,866
Stock Option Grant
During the month of August, the Company has also granted options to acquire an aggregate of 900,000 common shares at an exercise price of $0.30 per share to directors, officers and employees of the Company. The options expire August 11, 2024, vest equally over three years and are governed by the Company's Stock Option Plan.
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 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.
We seek Safe Harbor.
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