Deveron Reports Continued Revenue Growth in Q2
24 August 2020 - 1:18PM
Deveron UAS Corp. (CSE: DVR) (
“Deveron” or the
“Company”) a leading agriculture digital services
and insights provider in North America, is pleased to announce
revenue growth of 54% year over year to $1,123,867 in Q2 2020.
This marks a major milestone for the Company, as it has
successfully sold over $1 million in products and services for the
first time in one quarter since the Company’s founding.
Second Quarter 2020 Financial and Operational
Highlights
The Company’s financial performance improved
over the previous year’s quarter, driven by higher margin data
insight solutions, led by the Company’s acquisition of Texas based
Better Harvest, and the doubling of farm acres serviced from its
data collection division. For the three-month financial
results ended June 30, 2020 (and comparable period ended June 30,
2019):
- Revenue grew 54% year over year to $1,123,867 in Q2 2020, from
$727,973 in Q2 2019
- Revenue from US operations grew 361% to $595,696 in Q2
2020
- Total comprehensive income for the period was $76,223
“Our second quarter results illustrate the
success of our growth strategy which is underpinned by three key
focus areas: organic growth, productization of our offerings and
acquisitions,” commented David MacMillan, Deveron’s President and
CEO. “In the quarter, we were able to successfully integrate
our Texas acquisition, Better Harvest, which doubled the acres we
influence in the US and increased our US revenue by 361%.
This year we have made investments in our sales team and marketing
efforts which significantly impacted our sales funnel and activity
ahead. Additionally, investment in our data collection
network earlier this year has help secure nearly double the volume
in both drone and soil sampling orders compared to this time last
year. Looking forward to the next 6 months, our goal is to
continue accelerating the success of this strategy while also
focusing on some new digital tools and offerings that we believe
will continue to leverage our ability to scale and service more and
more customers throughout North America’s farm sector.”
Summary of Financial Results
Results of Operations |
For the three months ended |
For the six months ended |
|
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
Total Revenue |
$ |
1,123,867 |
|
$ |
727,973 |
|
$ |
1,407,287 |
|
$ |
828,537 |
|
Gross Profit |
$ |
925,631 |
|
$ |
508,058 |
|
$ |
1,105,287 |
|
$ |
577,891 |
|
Gross Profit Margin % |
|
82 |
% |
|
69 |
% |
|
79 |
% |
|
70 |
% |
Operating Expenses |
$ |
849,408 |
|
$ |
609,725 |
|
$ |
1,598,403 |
|
$ |
1,562,477 |
|
Total Comprehensive Income (Loss) |
$ |
76,223 |
|
$ |
(101,667 |
) |
$ |
(492,560 |
) |
$ |
(984,586 |
) |
Weighted Average Common Shares Outstanding |
|
49.8 |
M |
|
37.9 |
M |
|
44.1 |
M |
|
37.9 |
M |
Per Share: |
|
|
|
|
Comprehensive Net Gain (Loss) |
$ |
0.00 |
|
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.03 |
) |
Operational Highlights for Q2:
In the second quarter, Deveron was able to
achieve key objectives and successes that had a positive impact on
the Company’s trajectory:
- On April 7, Deveron closed a private placement for $655,000 by
a group of strategic investors led by Bill Linton. Mr. Linton
was appointed as a Director and non-executive Chairman of the
Board. Mr. Linton is an experienced director and private
investor and currently serves on the Boards of TMX Group (TSE: X),
Empire Company (TSE: EMP.A) and CSL Group. He has invested in
several successful private companies and retired in 2012 as the CFO
of Rogers Communications.
- On April 17, Deveron closed the 2nd tranche of a private
placement for $700,000, which combined with the first tranche,
Deveron issued 13,550,000 Units for aggregate gross proceeds of
$1,355,000.
- On May 11, Deveron acquired Better Harvest, a Texas based
agronomy solutions firm further expanding its US footprint by over
100,000 customer acres. Better Harvest had unaudited reported
revenue of $471,769 USD in 2019.
- On June 18, Deveron announced the national launch of a plant
tissue testing service in collaboration with A & L Canada
Laboratories to continue to build on the Company’s turn-key data
collection offering. Tissue sampling complements other
progressive precision agriculture programs and is a value-add to
traditional soil sampling.
Subsequent to Q2
- On July 7, Deveron announced that it is providing a turnkey
data service program to Terramera, a global ag-tech leader fusing
science, nature and artificial intelligence to transform how food
is grown. The collaboration allows Terramerra access to
Deveron’s drone data network to provide high fidelity insight on
numerous sites across Canada and the United States.
Business Outlook
“The second quarter affirmed our beliefs about
the value that our products and services provide our customers,”
commented David MacMillan, Deveron’s President and CEO. “As
engagement within our sales pipeline continues to grow and our team
continues to push efficient turn around from the field to the
creation of tangible data that helps leaders in agriculture make
better decisions, we only see our success accelerating. With
a quarter under our belt of our integration of Better Harvest and
increased activity in the United States, we see a lot of
opportunities to consolidate a fragmented service market and align
great businesses toward a common goal of providing better, unbiased
information to improve efficiencies on farms. We are looking
forward to a busy fall and have already seen increased demand as
the soil sampling season gets underway following wheat harvest
across a number of our operating nodes. Finally, although
COVID-19 has challenged our ability as a company to deliver our
services, to date we have not experienced any major impact on our
business activity.”
The Management’s Discussion and Analysis for the
period and the accompanying Financial Statements and notes are
available under the Company’s profile on SEDAR at
www.sedar.com. This news release is not in any way a
substitute for reading those financial statements, including the
notes to the financial statements.
About Deveron UAS: Deveron is a
leading agriculture technology company focused on providing data
acquisition services and data insights in North America.
Through its on-demand network of drone pilots and soil sampling
technicians, the Company is providing scalable data acquisition
solutions in the imagery and soil space. Additionally,
through its wholly owned subsidiary Veritas Farm Management, the
company provides growers in North America with independent data
analytics and insights on the massive amount of data being
generated on farms today.
For more information and to join our community,
please visit www.deveronuas.com/register or reach us on Twitter
@DeveronUAS or @MyVeritas_HQ
David MacMillanPresident & CEO Deveron UAS
Corp.416-367-4571 ext. 221dmacmillan@deveronuas.com
This news release includes certain
“forward-looking statements” within the meaning of that phrase
under Canadian securities laws. Without limitation, statements
regarding future plans and objectives of the Company are forward
looking statements that involve various degrees of risk.
Forward-looking statements reflect management's current views with
respect to possible future events and conditions and, by their
nature, are based on management's beliefs and assumptions and
subject to known and unknown risks and uncertainties, both general
and specific to the Company. Although the Company believes the
expectations expressed in such forward-looking statements are
reasonable, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in our forward-looking statements. The
following are important factors that could cause the Company’s
actual results to differ materially from those expressed or implied
by such forward looking statements: changes in the world-wide price
of agricultural commodities, general market conditions, risks
inherent in agriculture, the uncertainty of future profitability
and the uncertainty of access to additional capital. Additional
information regarding the material factors and assumptions that
were applied in making these forward looking statements as well as
the various risks and uncertainties we face are described in
greater detail in the "Risk Factors" section of our annual and
interim Management's Discussion and Analysis of our financial
results and other continuous disclosure documents and financial
statements we file with the Canadian securities regulatory
authorities which are available at www.sedar.com. The Company
undertakes no obligation to update this forward-looking information
except as required by applicable law. The Company relies on
litigation protection for forward looking
statements.
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