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Renoworks design services revenues up
295%
CALGARY, May 29, 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
first quarter ended March 31,
2018. 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 $772,731
for the three months ended March 31,
2018 compared to $704,3911 in 2017, up 10%.
- Design service revenues increased by 295% to $226,014 in the quarter ended March 31, 2018, compared to $76,786 for the same period in 2017.
- 52% of the first quarter's revenue in 2016 is attributable to
annual recurring customer contracts.
- Gross margins remained strong at 67%
- Adjusted EBITDA* for the three months ended March 31, 2018, a loss of $274,089 compared to a loss of $82,8341 for the same fiscal period in
2017.
- Reduced long-term debt from $143,167 to $55,389
- Expenses for the first quarter of $825,447. Increased expenses versus the
same period in fiscal 2017 are primarily attributed to personnel
costs in response to increased demand and to further the company's
efforts to fulfill its long-term strategies of software
development, increased marketing and in support of further revenue
growth across all business lines in 2018 and beyond.
- Net loss in Q1 was $311,459
versus a loss of $196,3491
during the same quarter a year ago.
- As at March 31, 2018, the company
had 33,562,810 common shares issued and outstanding
Doug Vickerson, CEO of Renoworks,
stated, "Reported revenue for Q1 was up versus the same period a
year ago and the Company remains very bullish as it relates to our
2018 plan. We are pleased with the progress in sales after
expanding our sales and marketing efforts, personnel and augmenting
our product offering development to drive future growth and our
leadership position in the home remodeling and construction
industry."
Mr. Vickerson continued, "We have a significant growth
opportunity in helping our ever increasing list of clients to drive
new sales and create deeper engagement with customers using our
visualizer technology. We are still in the early stages of
market penetration and will continue to execute against our
strategic imperatives to harness the full potential of this
opportunity."
Financial results from operations for the first quarter 2018
with comparatives for 2017 are as follows:
|
Three Months Ended
March 31
|
2018
|
2017
|
Revenue
|
$772,731
|
$702,391
1
|
Gross
Margin
|
$517,441
|
$514,423
1
|
Expenses
|
$825,447
|
$636,964
|
Loss
|
$311,459
|
$196,349
1
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
(274,089)
|
(82,834)
1
|
Weighted Average
Shares Outstanding
|
33,562,810
|
33,233,091
|
The Company's financial position as of March 31, 2018 with comparatives from 2017 is as
follows:
|
March 31,
2018
|
March 31,
2017
|
Cash
Balance
|
$633,532
|
$1,161,618
|
Accounts
Receivable
|
386,228
|
417,638
|
Long- term
debt
|
$55,389
|
$143,167
|
Shareholder's
Equity
|
($356,368)
|
$1,144,490
1
|
Deficit
|
($7,293,493)
|
($5,634,846)
1
|
Total
Assets
|
$1,171,159
|
$1,762,180
|
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).
1 IFRS 15 transition adjustments
The 2017 financial results have been restated due to the
Company's conversion to IFRS 15 effective January 1, 2018. The Company has adopted the
standard effective January 1, 2018
using the full retrospective method which requires each prior
reporting period presented to be restated.
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.