Mr. Becky Nye reports
CLEAR BLUE TECHNOLOGIES ANNOUNCES 2020 FINANCIAL RESULTS
Clear Blue Technologies International Inc. has released its financial results for the year ended Dec. 31, 2020.
Key financial results:
Record quarterly revenues of $2,504,446, a 5-per-cent increase over $2,392,839 for Q4 2019;
- TFQ revenue was $4,023,811, a 1-per-cent increase over the previous TFQ period;
- Beginning Q2 2020, the company began reporting bookings (see more information herein). For the period ending Dec. 31, 2020, the bookings were $4,158,916;
- Gross profit for TFQ was $1,266,999 or 31.5 per cent, a 42-per-cent increase from the previous period ($891,163 or 22.4 per cent). This was largely the result of two factors: cost reductions through supply chain and contract manufacturing, and, more importantly, new smart off-grid functionalities developed and implemented by the company, which resulted in the elimination of complex and costly system components;
- Operating expenses for the TFQ ended Dec. 31, 2020, were $4,629,224, a decrease of $1,051,437 or 19 per cent compared with the same period in 2019;
- Non-IFRS (international financial reporting standards) adjusted earnings before interest, taxes, depreciation and amortization for the TFQ were $(3,590,506) as compared with $(4,157,728) for the previous TFQ -- a 13.6-per-cent improvement resulting from improving gross margins, various cost reduction plans undertaken by the company as well as government COVID-19 funding support.
While COVID-19 clearly impacted Clear Blue's 2020 results, certain key results indicate positive positions for growth in 2021:
- Clear Blue's gross margin in 2020 grew significantly from 22.4 per cent in 2019 to 31.5 per cent in 2020.
- Clear Blue's backlog going into 2021 was $975,664.
- Recurring revenue growth is strong, led by the energy-as-a-service (EaaS) offering for Illumient in North America. In 2021, Clear Blue will extend its EaaS offering to its international telecom vertical, further accelerating the growth in recurring revenue.
- Clear Blue's investment in the telecom vertical and Africa is showing success, with many 2020 large rollout agreements moving forward including a project with forecasted sales of $5-million and over 400 sites, for a major infrastructure operator in Africa. With some of this order shipping in Q4, the remainder is forecasted to generate $3-million in revenue in Q1 2021 compared with total revenue of $238,298 in Q1 2020, a 1,100-per-cent increase in Q1 year over year.
- Additionally, the large $1.45-million order nano-grid power packs for Orange S.A. in Cameroon, in partnership with NuRAN, was announced in Q4 2020. NuRAN and Clear Blue will provide rural telecommunications systems and continuing operational services in Cameroon to Orange S.A., one of the world's largest mobile network operators.
To support these exciting new initiatives, Clear Blue also opened an office in Nairobi, Kenya, in 2020 and hired additional local talent in sales and technical support. The office is providing field research and development, sales, and a second operations service team to support Clear Blue's recurring Illumience and EaaS management service for full customer support, troubleshooting and technical support for systems across EMEA (Europe, the Middle East and Africa), in their local time zones.
Projects for Illumient solar street lights are seeing recurring projects, market expansion across North America, and opportunities in new industries and applications.
"In spite of COVID-19 impacts earlier in 2020, major projects are now moving forward and Clear Blue has had its best year, so far," said Miriam Tuerk, co-founder and chief executive officer. "The company continues to innovate to improve products and services for our customers, resulting in regular large project contracts and follow-on business across world. The successes of 2020 have driven growth in our team, process efficiencies and the ability to meet the needs of customers on an even larger scale. Our team has worked very hard to ensure that our sophisticated technology makes it simple for customers. This along with our push for even lower capex and opex for projects has resulted in great successes in 2020 and will continue to serve us into 2021. I am thrilled and honoured to represent Clear Blue's co-founders, management and entire team to the market."
While there continues to be significant uncertainty over the forward outlook, particularly in supply chain and shipping, as with the world economy and budgets in general, Clear Blue continues to see strong and strategic interest in its offerings in both of its key markets -- North American streetlights as well as telecom in emerging markets. Telecom, connectivity and cleantech are key growth sectors in the world's economy and Clear Blue continues to be positioned as a key and strategic leader in innovating technologies that make it possible to reliably and cost-effectively provide clean off-grid energy to mission-critical customers around the world.
The company will host a conference call to discuss its latest financial results at 11 a.m. Eastern Time (Canada/United States) on Tuesday, March 16, 2021.
About Clear Blue Technologies International Inc.
Clear Blue, the smart off-grid company, was founded on a vision of delivering clean, managed, wireless power to meet the global need for reliable, low-cost, solar and hybrid power for lighting, telecom, security, Internet-of-things devices and other mission-critical systems. Today, Clear Blue has thousands of systems under management across 37 countries, including the U.S. and Canada.
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