CALGARY, AB, April 16, 2021 /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 fourth quarter and fiscal 2020
year ended December 31, 2020.
The financial statements and related management's discussion and
analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Financial and business highlights for the fourth quarter and
fiscal 2020:
- Annual revenue of $5,132,109, up
20% over prior year.
- Quarterly revenue of $1,265,642
for the three months ended December 31,
2020 compared to $1,004,748 in
2019, an increase of 26%.
- Design Services revenue of $2,488,259 in 2020 versus $1,488,931 in 2019, an increase of 67%
- Design services revenue of $546,055 for the three months ended December 31, 2020 compared to $346,467 in 2019, up 59%.
- Gross margins continue to be strong at 66% and 67%,
respectively for the fourth quarter 2020 and the 12 months ended
December 2020.
- Net income of $123,582 in 2020
compared to a net loss of $686,095
for 2019.
- As at December 31, 2020, the
Company had 36,610,507 common shares issued and outstanding.
"This past year, and despite the on-going pandemic, we've
delivered a record number of visualization solutions and services
to what can only be described as a highly resilient industry," said
Doug Vickerson, CEO of Renoworks.
"The record performance of this year's financials and another
record quarter is again the result of the extraordinary work and
commitment of the Renoworks team to deliver solutions that address
the vital needs of our clients."
Mr. Vickerson added, "Our consistent investments in the
Company's infrastructure, innovative technologies, platform
solutions and services such as Design Service and AI
Autorecognition, ensures our position in the market as a
competitive and innovative force that our clients can rely on. I am
extremely proud of our efforts as a Company and look forward to
addressing future opportunities that will contribute to our
continued growth."
Financial results from operations for the fourth quarter 2020
with comparatives for 2019 are as follows:
|
Three Months Ended
December 31
|
2020
|
2019
|
Revenue
|
$1,265,642
|
$1,004,748
|
Gross
Margin
|
$839,423
|
$704,304
|
Expenses
|
$604,570
|
$747,901
|
Income
(Loss)
|
($69,583)
|
($249,016)
|
Income (Loss) per
share
|
($0.00)
|
($0.01)
|
Adjusted
EBITDA
|
($22,301)
|
($167,818)
|
Weighted Average
Shares
Outstanding
|
36,610,507
|
36,610,507
|
Financial results from operations for the year ended
December 31, 2020 with comparatives
for 2019 are as follows:
|
Twelve Months Ended
December 31
|
2020
|
2019
|
Revenue
|
$5,132,109
|
$4,264,087
|
Gross
Margin
|
$3,457,640
|
$2,925,803
|
Expenses
|
$2,404,848
|
$2,857,758
|
Income
(Loss)
|
$123,582
|
($686,095)
|
Income (Loss) per
share
|
$0.00
|
($0.02)
|
Adjusted
EBITDA
|
$355,892
|
($375,563)
|
Weighted Average
Shares Outstanding
|
36,610,507
|
35,280,792
|
Cash provided/(used
in)
operations
|
$181,524
|
($391,653)
|
The Company's financial position as of December 31, 2020 with comparatives from 2019 is
as follows:
|
December 31,
2020
|
December 31,
2019
|
Cash
Balance
|
$523,555
|
$500,751
|
Accounts
Receivable
|
$617,161
|
$398,418
|
Working
Capital
|
$276,098
|
$108,595
|
Deferred
Revenue
|
$970,835
|
$1,019,140
|
Long- term
liabilities
|
$344,434
|
$471,531
|
Shareholder's
Equity
(Deficiency)
|
$203,577
|
($10,942)
|
Deficit
|
($7,805,270)
|
($7,928,852)
|
Total
Assets
|
$1,534,171
|
$1,387,516
|
The COVID-19 pandemic continues to cast significant future
uncertainty. The continued spread of COVID-19 in North America and globally could have an
adverse impact on the company's operations and financial
results. The Company's results have been positively impacted
by the pandemic due to the increase in home renovation
activity. However, continued quarantines, labor shortages or
other disruptions for extended periods of time, or at the end of
those measures, may adversely affect the Company's revenues,
ability to provide services, operating results or the ability to
raise funds through debt or equity. The extent to which the
pandemic could impact the Company's results will depend on future
developments, which are highly uncertain and cannot be predicted,
and will include new information which may emerge concerning the
severity of the pandemic and actions taken to contain the
coronavirus or its impact, among other unpredictable
events.
Regarding COVID-19, management developed detailed mitigation
plans commencing March 17, 2020, and
meets with the Board of Directors weekly to review the Company
status. Firstly, employee safety and health were paramount.
Every employee has worked remotely since March 15 and every employee reports vigilance in
practicing safe and healthy habits at home. Further, there have
been no known negative impacts to deadlines or productivity with
regard to customer service, software development, or employee
morale.
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, 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.
Not for dissemination in the
United States or for distribution to United States news wire services.
SOURCE RenoWorks Software Inc.