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Renoworks graphic services revenues up
323%
CALGARY, May 26, 2017 /CNW/ - Renoworks Software
Inc. (TSXV: RW)("Renoworks" or the "Company") a
leading provider of digital home imaging software and web solutions
for new home construction and existing home renovations, yesterday
announced financial results for the first quarter ended
March 31, 2017. 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 $665,503
for the three months ended March 31,
2017 compared to $649,574 in
2016.
- Graphic service revenues increased by 323% to $76,786 in the quarter ended March 31, 2017, compared to $18,132 for the same period in 2016.
- 64% of the first quarter's revenue in 2017 is attributable to
annual recurring customer contracts.
- Gross margins continue to be strong at 72% for the
quarter.
- Adjusted EBITDA* for the three months ended March 31, 2017, a loss of $119,722 compared to a loss of $74,773 for the same fiscal period in 2016.
- Reduced long-term liabilities from $222,625 to $143,167
- Expenses for the first quarter of $636,964. Increased expenses versus the
same period in fiscal 2016 are primarily attributed to marketing
resources and new staff in support of further revenue growth across
all business lines in 2017 and beyond.
- As at March 31, 2017, the
Company's cash balance was $1,161,618
compared to $311,946 as at
March 31, 2016.
Doug Vickerson, CEO of Renoworks,
stated, "We are pleased to report our financial results for Q1 2017
and deliver substantial quarter-over-quarter revenue growth in our
design services business line. Our design services strategy is
proving very effective." Mr. Vickerson explained, "It's important
to note that we launched a new business model with a leading
manufacturer at the beginning of March and in only 31 days it has
already grown revenues in that business line organically by 323%
year-over-year. In the coming quarters, we will continue
scaling this business line and expect it to become a larger
percentage of overall revenues. As we expand our sales
channel to support revenue growth across all our business lines, we
see pursuing this lucrative opportunity as being one of the main
driving forces of our bottom line."
Financial results from operations for the first quarter 2017
with comparatives for 2016 are as follows:
|
Three Months Ended
March 31
|
2017
|
2016
|
Revenue
|
$665,503
|
$649,574
|
Gross
Margin
|
$477,535
|
$481,632
|
Expenses
|
$636,964
|
$543,845
|
Loss
|
$233,237
|
$98,450
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
(119,722)
|
(74,773)
|
Weighted Average
Shares Outstanding
|
33,233,091
|
28,671,044
|
The Company's financial position as of March 31, 2017 with comparatives from 2016 is as
follows:
|
March 31,
2017
|
March 31,
2016
|
Cash
Balance
|
$1,161,618
|
$311,946
|
Accounts
Receivable
|
417,638
|
517,308
|
Working
Capital
|
$1,160,477
|
$244,074
|
Deferred
Revenue
|
320,123
|
423,845
|
Long- term
liabilities
|
$143,167
|
$222,625
|
Shareholder's
Equity
|
$1,107,603
|
$65,560
|
Deficit
|
($5,671,734)
|
($5,417,199)
|
Total
Assets
|
$1,762,180
|
$888,845
|
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software for the remodelling and new home
construction industry, primarily in the
United States and Canada. Delivered online, as a
custom developed app or desktop software, Renoworks provides its
technology to manufacturers, contractors, builders and retailers
offering the solution to one of the home remodelling industry's
greatest challenges: enabling customers to see how their product
choices will look in a realistic, virtual environment – even in
their own home – before they make a purchase decision.
Renoworks markets its software as a cost-effective lead generation
tool and generates revenues from four main business lines:
Enterprise, Renoworks PRO, Renoworks GSB and Renoworks SDK
(Software Development Kit).
For more information, visit www.renoworks.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.
SOURCE RenoWorks Software Inc.