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Prodigy Ventures Inc. Adapts To the Pandemic and Releases Q1 Results

V.PGV

(TSXV-PGV)

TORONTO, May 27, 2020 /CNW/ - Prodigy Ventures Inc. (TSXV:PGV) ("Prodigy" or the "Company") today announced its financial results for Q1 2020.

"Prodigy has successfully navigated the first phase of the COVID-19 pandemic." said Jeff Watts, Prodigy's CEO. "The Company's continuing pipeline of work is being delivered remotely without interruption, and Prodigy continues to cut overheads and expenses to maintain a strong cash position. "

First Quarter 2020 Financial Results

  • Revenue for the three months ended March 31, 2020 totalled $4,484,140 as compared to $4,877,728 for the three months ended March 31, 2019, a decrease of 8%.
  • Gross profit for the three months ended March 31, 2020 of $1,222,762 as compared to $1,361,359 for the three months ended March 31, 2019, a decrease of 10%.
  • Operating Expenses for the three months ended March 31, 2020 of $1,212,441 as compared to $1,157,359 for the three months ended March 31, 2019, an increase of 5%.
  • Net Income for the three months ended March 31, 2020 totalled $1,969 as compared to $144,822 for the three months ended March 31, 2019, a decrease of 99%.
  • Adjusted EBITDA for the three months ended March 31, 2020 totalled $84,245 as compared to $268,319 for the three months ended March 31, 2019, a decrease of 69%.
  • The Company had working capital of $2,241,114 as of March 31, 2020 compared to $2,728,512 as of December 31, 2019.



Three months ended
March 31




2020

$

2019

$






Revenue



4,484,140

4,877,728

Gross Profit(1)



1,222,762

1,361,359

Expenses



1,212,441

1,157,359

Net and comprehensive income for the period



1,969

144,822

Net income per share – basic and diluted



0.00

0.00

Adjusted EBITDA(2)



84,245

268,319

(1)

Gross Profit is a non-GAAP financial measure, which is defined as total revenue less the direct cost of revenue. Gross Profit is used by management to assess our operating performance. The presentation of Gross Profit is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Gross Profit should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Gross Profit differently.

(2)

Adjusted EBITDA is a non-GAAP financial measure, which is defined as earnings before income tax expense, finance costs, depreciation and amortization and share-based compensation. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in our business performance. Adjusted EBITDA is used by management to assess our operating performance. The presentation of Adjusted EBITDA is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA differently.

(3)

For further information regarding non-GAAP financial measures please see the Company's Management's Discussion and Analysis for the period ended March 31, 2020 under the heading "Non-GAAP Financial Measures".

The complete unaudited financial statements and associated Management's Discussion and Analysis are available under the Company's profile at www.sedar.com or the Company's website at www.prodigy.ventures.

COVID-19 UPDATE

Prodigy continues to carefully monitor and assess the evolving situation related to COVID-19 and the potential impact to its business, employees and customers. Although the impact to the future demand for the Company's services remains unknown, the Company has a continuing pipeline of work which is being delivered remotely without interruption. Furthermore, in the spirit of prudent management, the Company has taken steps to reduce its overhead and ongoing expenses to ensure it maintains a strong cash position. As a result, we believe the Company is well positioned to absorb economic impacts and maintain its long-term viability.

About Prodigy Ventures Inc.

Prodigy delivers Fintech innovation. The Company develops software and services with emerging technologies for digital transformation, identity and payments. Digital transformation services include strategy, architecture, design, project management, agile development, quality engineering and staff augmentation. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards: Deloitte's Fast 50 Canada and Fast 500 North America (2016, 2017, 2018), Branham 300 (2017, 2018), Growth 500 (2018 and 2019), Canada's Top Growing Companies (2019).

Forward-Looking and Cautionary Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward looking statements in this press release include statements regarding the impact of COVID-19 on the Company's business. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the three months ended March 31, 2020, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

Non-GAAP Financial Measures

Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Certain financial measures in this press release are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze operating performance. These non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Except as otherwise indicated, these non-GAAP measures are calculated and disclosed on a consistent basis from period to period.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Prodigy Ventures Inc.

Cision View original content: http://www.newswire.ca/en/releases/archive/May2020/27/c9196.html

PRODIGY VENTURES INC.: Andrew Hilton, Chief Financial Officer, Andrew.Hilton@Prodigy.Ventures, 416-606-8833Copyright CNW Group 2020