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CALGARY, AB, Nov. 24, 2020 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), the leading end-to-end visualization platform for
the building construction industry, yesterday announced financial
results for the three and nine-months ended September 30, 2020. 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 $1,414,472
for the three months ended September 30,
2020 compared to $1,060,473 in
2019, an increase of 33%
- Design Services revenue of $767,109 for the three months ended September 30, 2020 compared to $389,691 in 2019, up 97%.
- Gross margins continue to be strong at 65% and 66%,
respectively for the third quarter 2020 and 2019
- Net income of $27,042 for the
quarter ended September 30, 2020
compared to a net loss of $219,941 in
2019.
- As at September 30, 2020, the
Company had 36,610,507 common shares issued and outstanding.
"Renoworks has reached another milestone by achieving again a
record revenue quarter," said Doug
Vickerson, CEO of Renoworks. "Driven largely through our
design services, Renoworks is meeting the demand of homeowners
seeking to plan and design home construction and remodeling
projects, and of contractors seeking to service that demand with
the aid of our online network of building product visualization
applications. This growth is consistent with the industry-wide
growth trends we've observed in the residential construction and
remodeling industry throughout 2020."
Mr. Vickerson continued, "This increase in demand was a welcomed
surprise to the industry. More and more consumers, adhering to
stay-at-home orders, are addressing backlogged maintenance and
upgrade needs for their homes, giving rise to the opportunity for
manufacturers and contractors to sell their products and services
with the help of a Renoworks visualization solution. For Renoworks,
we continue to reinvest our resources into sustaining our
high-quality delivery of our visualization solutions and developing
our platform to address these opportunities for our clients and
end-users."
Financial results from operations for the third quarter 2020
with comparatives for 2019 are as follows:
|
Three Months Ended
September 30
|
2020
|
2019
|
Revenue
|
$1,414,472
|
$1,060,473
|
Gross
Margin
|
$919,229
|
$705,380
|
Expenses
|
$839,985
|
$906,049
|
Income
(Loss)
|
$27,042
|
($219,941)
|
Income (Loss) per
share
|
$0.00
|
($0.01)
|
Adjusted
EBITDA
|
$88,671
|
($134,911)
|
Weighted Average
Shares
Outstanding
|
36,610,507
|
36,610,507
|
Financial results from operations for the year to date 2020 with
comparatives for 2019 are as follows:
|
Nine Months Ended
September 30
|
2020
|
2019
|
Revenue
|
$3,866,467
|
$3,259,339
|
Gross
Margin
|
$2,618,217
|
$2,221,499
|
Expenses
|
$2,364,072
|
$2,561,444
|
Income
(Loss)
|
$193,165
|
($437,079)
|
Income (Loss) per
share
|
$0.01
|
($0.01)
|
Adjusted
EBITDA
|
$378,193
|
($209,025)
|
Weighted Average
Shares Outstanding
|
36,610,507
|
35,288,343
|
Cash increase (used
in)
operations
|
$409,729
|
($262,085)
|
The Company's financial position as of September 30, 2020 with comparatives from 2019 is
as follows:
|
September 30,
2020
|
December 31,
2019
|
Cash
Balance
|
$834,204
|
$500,751
|
Accounts
Receivable
|
$489,546
|
$398,418
|
Working
Capital
|
$329,083
|
$108,595
|
Deferred
Revenue
|
$1,069,341
|
$1,019,140
|
Long- term
liabilities
|
$341,900
|
$471,531
|
Shareholder's
Equity
(Deficiency)
|
$260,508
|
($10,942)
|
Deficit
|
($7,735,687)
|
($7,928,852)
|
Total
Assets
|
$1,732,439
|
$1,387,516
|
As talk of a second wave approaches in the ongoing COVID-19
pandemic, and despite these quarterly results, significant
uncertainty remains. The extent to which COVID-19, and growing
numbers of cases in both Canada
and the United States, could
impact the Company's results will depend on future developments and
remains unpredictable.
The Company continues to adhere to health and safety protocols
implemented on March 17, 2020 and
meets with the Board of Directors weekly to review the Company's
status. Voluntary work from home policy has been exercised by
all staff to ensure safe and healthy distancing and reduce
workplace cohort spread and exposure. Furthermore, no employees
were laid off and no employee hours were reduced as at today's
date. The Company continues to remotely interface with customers
and monitor any cash flow impacts that may arise.
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 hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform 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, realize a revenue or other return on technology
and platform development, capitalize on actual or perceived
opportunities in the marketplace, or adequately cope with the
impact of COVID-19, 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
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.