Clear Blue Technologies International Inc. (TSXV: CBLU) (FRANKFURT:
OYA) (OTCQB: CBUTF), announces its financial results for the
quarter ended March 31, 2023 (“Q1 F2023”). A complete set of
Financial Statements and Management’s Discussion & Analysis
(“MD&A”) has been filed at www.sedar.com. All dollar amounts
are denominated in Canadian dollars.
On a Trailing Four Quarter (“TFQ”) basis:
-
TFQ revenue was $1,674,003, a 72% decrease from $5,914,758 in the
corresponding previous period. The current period was impacted by
the economic downturn triggered by the macro-economic events of
early 2022.
-
TFQ recurring revenue was $865,610, a 75% increase from $495,404 in
the corresponding previous period.
-
TFQ Gross Profit decreased to $574,296 compared to $2,011,797 in
the comparable period, a reduction of 71%.
-
Gross margin percentage remained consistent at 34% with the
comparative TFQ period of 2022.
-
TFQ EBITDA was $(2,825,118) as compared to $(3,232,312) for the
previous period, a 13% improvement.
For Q1 F2023:
-
Revenue was $262,137, a 79% decrease from $1,225,106 for the
quarter ended March 31, 2022 (“Q1 2022”).
-
Recurring revenue was $212,004, a 40% increase from $150,975 in Q1
2022.
-
Gross Profit for Q1 2023 was $93,272 compared to $507,500 for Q1
2022, an 82% decrease resulting from lower revenue for the
quarter.
-
Gross Margin percentage for Q1 2023 was 36%, down from 41% in Q1
2022.
-
EBITDA was $25,180 versus $(919,958) in Q1 2022, a 102% improvement
from Q1 2022. The improved EBITDA reflects the Company’s 2022 cost
reduction program, increased costs from eSite operations as well as
government grants.
-
As of March 31, 2023, bookings increased to $3,516,857, an increase
of 77%, when compared to $1,991,275 as of December 31, 2022, with
delivery anticipated over the next three years in the case of
Illumience/EaaS and typically in the next four to six months in the
case of production orders.
-
Cash at March 31, 2023 was $682,945 versus $853,330 at December 31,
2022. During the current quarter, the Company received an approval
for a grant of $750,000 from National Research Council of Canada
Industrial Research Assistance Program. As at March 31, 2023, the
Company has received $247,285 in connection with the grant.
Subsequent to the quarter end, the Company received additional
$1,175,862 in grant payments.
-
As of May 29, 2023, the Company has $5.6M of available government
funding, with $3.8 million receivable in government grants, and
$1.8 Million receivable in the form of a 10-year interest free loan
to fund its plans going forward over the next 3 years.
Notable Developments During Q1 F2023
- January 27, 2023: Clear Blue
Technologies closes final tranche of oversubscribed $2.5 million
private placement.
- January 23, 2023: Clear Blue
Technologies acquires eSite Power Systems.
Subsequent Highlights
- May 18, 2023:
Clear Blue announced an order for a Roadway Expansion project. The
project is expected to ship in Q3 2023 and has an estimated
life-time contract value of $425,000.
- In May 2023,
Clear Blue received its next tranche of SDTC R&D government
grant financing in the amount of $1.1 million.
Outlook
Clear Blue’s focus continues to be cash centric
– driving a cash neutral plan for 2023. While this includes
benefits from already approved government grants, cash neutrality
would be a first in the Company’s history. As we move into the
later quarters of the year, EBITDA should improve as bookings
convert into strong revenue growth, combined with already
implemented cost containment measures.
The Company is on track for F2023 to be more in
line with the Company’s historic revenue profile and its 2021
results. Although the eSite acquisition did increase our cost base
slightly, Clear Blue’s revenue threshold for cash flow and EBITDA
break-even is approximately $9 million, owing to the Company’s cost
containment measures and considering the integration of the eSite
acquisition.
We believe Fiscal 2023 will ultimately look more
like 2021 than 2022 based on the customer interest and confirmed
bookings to date. We see a much-improved customer macro environment
with confirmed bookings and orders in the pipeline for Q2 to Q4
sufficient to generate an annual revenue outcome more in line with
2021 than 2022.
Conference Call
Clear Blue will host a conference call that
today at 11:00 a.m. Eastern Time, to review the Company's
performance and answer questions. Those interested can register
here.
For more information, contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.com
www.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies
International
Clear Blue Technologies International, 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. (TSXV: CBLU) (FRA:
0YA) (OTCQB: CBUTF)
Legal Disclaimer
Neither 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.
Forward-Looking Statement
This press release contains certain
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable securities laws. Such
forward-looking information and forward-looking statements are not
representative of historical facts or information or current
condition, but instead represent only Clear Blue’s beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of Clear Blue's
control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or may contain
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "will continue", "will occur"
or "will be achieved". The forward-looking information contained
herein may include, but is not limited to, information concerning
financial results and future upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information and forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended.
In connection with the forward-looking
information and forward-looking statements contained in this press
release, Clear Blue has made certain assumptions. Although Clear
Blue believes that the assumptions and factors used in preparing,
and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed
on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information
and statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release. All subsequent written and oral
forward-looking information and statements attributable to Clear
Blue or persons acting on its behalf is expressly qualified in its
entirety by this notice.”
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
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