Renoworks reports record annual revenue and
fifth consecutive quarter of record revenue
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO
UNITED STATES NEWS WIRE
SERVICES./
CALGARY, April 18, 2018 /CNW/ - Renoworks
Software Inc. (TSXV: RW)("Renoworks" or the
"Company), the leading visualizer for the home remodeling
and construction industry, today announced financial results for
the fourth quarter ended December 31,
2017.
Financial and business highlights for the fourth quarter and
fiscal 2017:
- Fifth consecutive quarter of record revenue.
- Record annual revenue of $3,074,264, up 10% over prior year.
- Record quarterly revenue of $839,457 for the three months ended December 31, 2017 compared to $726,957 in 2016, an increase of 15%.
- Annual recurring revenue of $1,669,336 compared to 1,553,712 for the
same period in 2016, an increase of 7%.
- Annual recurring customer contracts comprise 48% and 54%,
respectively for the fourth quarter and fiscal 2017.
- Design Services revenue of $593,756 in 2017 versus $106,079 in 2016, an increase of 550%
- Design services revenue of $151,367 for the three months ended December 31, 2017 compared to $20,341 in 2016, up 744%.
- Gross margins continue to be strong at 66% and 70%,
respectively for the fourth quarter 2017 and the 12 months ended
December 2017.
- Working capital of $662,279 for
the 12 months ended December 31,
2017, increased from $328,795
for the same period in 2016, an increase of 101%
- Long-term liabilities reduced by $85,620 from $163,780 in 2016 to $78,160 at December 31,
2017.
- Net loss of $836,510 for
2017. As Renoworks' growth strategy progresses, it remains
flexible to invest in the recruitment of qualified personnel in
response to increased demand and to further the Company's efforts
to fulfill its long-term strategies of software development,
increased marketing and financial growth.
- As at December 31, 2017, the
Company had 33,562,810 common shares issued and outstanding.
Doug Vickerson, CEO of Renoworks,
stated, "Not only have we strengthened our balance sheet, but also
we have achieved record growth in revenue for five consecutive
quarters and see continued growth in 2018. Alongside this
growth, we have been investing in the Company's infrastructure,
R&D, technology and marketing to lay the foundation to scale
and support further growth. We have made significant progress
in our design services segment which contributed to strong top-line
results and I'm proud of the job our team has done in growing that
business line aggressively. Mr. Vickerson continued,
"Although we had a net loss it was necessary to add key personnel
in response to increased demand for our services and to position
Renoworks to meet the substantial opportunities that exist in the
marketplace.
Mr. Vickerson added, "As the transformation in the industry
around the entire remodeling process from project inception to
completion takes hold, our focus will be on dominating the
essential design segment in the value chain surrounding these
projects to further increase sales. We are experiencing
increased demand from product manufacturers to join the Renoworks
platform across a multitude of categories and are moving quickly to
meet the demand for our core technology."
Financial results from operations for the fourth quarter 2017
with comparatives for 2016 are as follows:
|
Three Months Ended
December 31
|
2017
|
2016
|
Revenue
|
$839,457
|
$726,957
|
Gross
Margin
|
$553,927
|
$521,139
|
Expenses
|
$767,779
|
$544,711
|
Loss
|
$212,134
|
$70,915
|
Loss per
share
|
($0.01)
|
$0.001
|
Adjusted
EBITDA
|
($155,638)
|
$39,725
|
Weighted Average
Shares Outstanding
|
33,562,810
|
29,086,428
|
Financial results from operations for the year ended
December 31, 2017 with comparatives
for 2016 are as follows:
|
Twelve Months Ended
December 31
|
2017
|
2016
|
Revenue
|
$3,074,264
|
$2,782,940
|
Gross
Margin
|
$2,158,014
|
$2,115,255
|
Expenses
|
$2,947,783
|
$2,118,687
|
Loss
|
$836,510
|
$119,748
|
Loss per
share
|
$0.025
|
$0.004
|
Adjusted
EBITDA
|
($674,741)
|
$69,961
|
Weighted Average
Shares Outstanding
|
33,562,810
|
29,086,428
|
Cash used in
operations
|
$646,311
|
$158,465
|
The Company's financial position as of December 31, 2017 with comparatives from 2016 is
as follows:
|
December 31,
2017
|
December 31,
2016
|
Cash
Balance
|
$719,298
|
$348,036
|
Accounts
Receivable
|
$396,841
|
$358,424
|
Working
Capital
|
$662,279
|
$328,795
|
Deferred
Revenue
|
$364,024
|
$321,339
|
Long- term
liabilities
|
$78,160
|
$163,780
|
Shareholder's
Equity
|
$633,129
|
$209,433
|
Deficit
|
($6,275,007)
|
($5,438,497)
|
Total
Assets
|
$1,267,533
|
$1,829,520
|
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 innovative engagement tools and generates revenues
from four main business lines: Renoworks Enterprise, Renoworks PRO,
Renoworks Design Services and Renoworks SDK (Software Development
Kit). 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.
SOURCE RenoWorks Software Inc.