Renoworks announces 2018 first quarter financial results

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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 $704,391 ¹ 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 $82,834 ¹ 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 $196,349 ¹ 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:

The Company's financial position as of March 31, 2018 with comparatives from 2017 is as follows:

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.

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