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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.
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