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Renoworks announces Design Services growth of
26%
CALGARY, Nov. 28, 2019 /CNW/ - Renoworks
Software Inc. (TSXV: RW)("Renoworks" or the
"Company"), the leading visualizer for the home
remodeling and new home construction industry, yesterday announced
financial results for the third quarter ended September 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 $1,060,473
for the three months ended September 30,
2019 compared to $1,084,208 in
2018.
- Design service revenues increased by 26% to $389,691 in the three months ended September 30, 2019, compared to $308,899 for the same period in 2018.
- 39% of the third quarter's revenue in 2019 is attributable to
annual recurring customer contracts.
- Adjusted EBITDA* for the three months ended September 30, 2019, a loss of $134,100 compared to a profit of $99,901 for the same fiscal period in 2018.
- Expenses for the second quarter of $906,049. Expenses increased by 23%
compared with the same period in fiscal 2018.
- Net loss for the fiscal quarter was $219,941 versus a profit of $61,292 during the same quarter a year ago.
- As of September 30, 2019, the
company had 36,610,507 common shares issued and outstanding.
"Revenues from our design services business unit have grown 26%
over last year, a testament of our strong position and ability to
deliver visualization experiences that matter to the industry,"
stated Doug Vickerson, CEO of
Renoworks. "By continuing to invest our resources into
future-forward technologies, and in their scalability, we can
deliver deep value that continues to translate into customer
success and recurring revenue."
Mr. Vickerson continues, "For example, we've commercialized our
A.I auto-recognition technologies and are expanding its ability to
detect other building product categories. This is resonating
positively with our customers and they are readying for
adoption."
"Our platform continues to evolve into a vital tool-chain that
solves the industry's value chain struggles. We look forward to
revealing more of our technology developments and strategic
initiatives that will reaffirm our commitment to advancing the
industry as a whole in 2020."
Financial results from operations for the third quarter of 2019
with comparatives for 2018 are as follows:
|
Three Months Ended
September 30
|
2019
|
2018
|
Revenue
|
$1,060,473
|
$1,084,208
|
Gross
Margin
|
$705,380
|
$817,065
|
Expenses
|
$906,049
|
$731,994
|
Profit
(Loss)
|
($219,941)
|
$61,292
|
Profit (Loss) per
share
|
($0.01)
|
$0.00
|
Adjusted
EBITDA
|
($134,100)
|
$99,901
|
Weighted Average
Shares Outstanding
|
36,610,507
|
33,712,810
|
Financial results from operations for the year to date 2019 with
comparatives for 2018 are as follows:
|
Nine Months Ended
September 30
|
2019
|
2018
|
Revenue
|
$3,259,339
|
$2,905,106
|
Gross
Margin
|
$2,221,499
|
$2,104,662
|
Expenses
|
$2,561,444
|
$2,334,588
|
Loss
|
$437,079
|
$241,796
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
($207,745)
|
($127,728)
|
Weighted Average
Shares Outstanding
|
35,288,343
|
33,712,810
|
Cash used in
operations
|
$262,085
|
$135,661
|
The Company's financial position as of September 30, 2019, with comparatives from 2018
is as follows:
|
September 30,
2019
|
September 30,
2018
|
Cash
Balance
|
$719,226
|
$501,201
|
Accounts
Receivable
|
$516,920
|
$654,516
|
Long- term
debt
|
$234,714
|
$8,111
|
Shareholder's
Equity
|
$198,161
|
($211,224)
|
Deficit
|
($7,679,836)
|
($7,223,830)
|
Total
Assets
|
$1,769,820
|
$1,321,434
|
During the fiscal quarter ended September
30, 2019, the Company has also issued 1,130,000 stock
options to directors, officers, and employees of the Company.
About Renoworks
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.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS.
However, management of Renoworks believes that most shareholders,
creditors, other stakeholders, and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock-based
compensation, restructuring costs, impairment charges, and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that
Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on SEDAR (www.sedar.com).
Forward-Looking Information
Certain statements in this news release, other than
statements of historical fact, are forward-looking information that
involves various risks and uncertainties. Such statements relating
to, among other things, the prospects for the company to enhance
operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from the
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral
forward-looking statements are based on the estimates and opinions
of the management on the dates they are made and expressly
qualified in their entirety by this notice. The Company assumes no
obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.