/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO
UNITED STATES NEWS WIRE
SERVICES./
- Renoworks reports fifth consecutive quarter of record
revenues
- Record Graphic Services revenue - up 969% vs Q2
2016
CALGARY, Aug. 25, 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, today
announced financial results for the second quarter ended
June 30, 2017. The financial
statements and related management's discussion and analysis
("MD&A") can be viewed on SEDAR (www.sedar.com).
Financial and business highlights for the second quarter
2017:
- Fifth consecutive quarter of record revenues.
- Record revenues of $768,949 for
the second quarter 2017 a 13% year-over-year increase.
- Record Graphic Services revenue of $207,209 for the second quarter 2017 a 969%
quarter-over-quarter increase.
- Revenues of $768,949 for the
three months ended June 30, 2017
compared to $675,574 in 2016, an
increase of 14%.
- Annual Recurring Revenue of $430,900 for the quarter ending June 30, 2017 increased from $373,347 for the same period in 2016, an increase
of 15%.
- 56% of the second quarter's revenue in 2017 is attributable to
annual recurring customer contracts.
- Reduced long-term liabilities from $203,496 to $122,035
- Strong Working Capital of over $1.1
million.
- After a successful integration of Renoworks Visualization
technology into the Remote Sales Force Platform, Renoworks has
divested its ownership position. Renoworks will continue to
be a strategic partner of Remote Sales Force.
Doug Vickerson, CEO of Renoworks,
stated, "We are excited with our continued growth and fifth
consecutive quarter of record revenues. Of particular interest is
the increase in Graphic Services revenue for both the remodel and
builder segment." Mr. Vickerson added, "Our strategic decision to
divert some short-term resources to build out our Graphic Services
division paid off this quarter and will continue to pay off in
future quarters. Our focus is to continue to grow our
different lines of business through offering best in class
solutions."
Financial results from operations for the second quarter 2017
with comparatives for 2016 are as follows:
|
Three Months Ended
June 30
|
2017
|
2016
|
Revenue
|
$768,949
|
$675,574
|
Gross
Margin
|
$541,758
|
$552,855
|
Expenses
|
$742,648
|
$564,607
|
Loss
|
$95,728
|
$38,107
|
Earnings (loss) per
share
|
$0.00
|
$0.00
|
Adjusted
EBITDA*
|
($154,106)
|
($12,480)
|
Weighted Average
Shares Outstanding
|
33,562,810
|
28,673,446
|
Financial results from operations for the year to date 2017 with
comparatives for 2016 are as follows:
|
Six Months Ended June
30
|
2017
|
2016
|
Revenue
|
$1,434,453
|
$1,325,147
|
Gross
Margin
|
$1,019,294
|
$1,034,052
|
Expenses
|
$1,379,613
|
$1,108,018
|
Loss
|
$328,965
|
$136,558
|
Loss per
share
|
$0.01
|
$0.00
|
Adjusted
EBITDA*
|
($273,829)
|
(87,254)
|
Weighted Average
Shares Outstanding
|
31,636,186
|
28,671,649
|
Cash used in
operations
|
$632,273
|
$248,658
|
The Company's financial position as of June 30, 2017 with comparatives from 2016 is as
follows:
|
June 30, 2017
|
June 30, 2016
|
Cash
Balance
|
$767,999
|
$239,696
|
Accounts
Receivable
|
762,887
|
419,807
|
Working
Capital
|
$1,118,965
|
$221,855
|
Deferred
Revenue
|
350,119
|
333,110
|
Long- term
liabilities
|
$122,035
|
$203,496
|
Shareholder's
Equity
|
$1,054,068
|
$58,486
|
Deficit
|
($5,767,462)
|
($5,455,307)
|
Total
Assets
|
$1,658,857
|
$726,071
|
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.