CALGARY, ALBERTA–(Marketwired – April 7, 2017) –
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES.
Renoworks Software Inc. (TSX VENTURE:RW) (“Renoworks” or the “Company”) a leading provider of digital home imaging software and web solutions for new home construction and existing home renovations, today announced audited financial results for the fourth quarter and year-ended December 31, 2016. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
Annual and Quarterly financial and business highlights:
- Record revenues of $2,782,940 for fiscal 2016, an increase of 32%, versus $2,110,083 in 2015.
- Record quarterly revenues of $726,957 for the three months ended December 31, 2016 compared to $434,031 in 2015, an increase of 67%.
- Implementation revenues increased 64% year over year.
- Renoworks Pro revenues increased 171% from $80,000 in 2015 to $217,000 in 2016.
- Annual Recurring Revenue of $408,055 for the quarter ending December 30, 2016 increased from $367,514 for the same period in 2015, an increase of 11%.
- 56% of the fourth quarter’s revenue in 2016 is attributable to annual recurring customer contracts.
- Net loss of $119,748 for the year ended December 31, 2016 compared to a net loss of $360,475 in 2015.
- Gross margins continue to be strong at 72% and 76%, respectively for the fourth quarter 2016 and year ended December 2016.
- Reduced long-term liabilities from $241,284 to $163,780.
- Adjusted EBITDA for fiscal 2016 of $71,605 compared to a loss of $276,457 for fiscal 2015.
- Launched Renoworks SDK, a software development kit allowing key development partners to easily integrate the power of software visualization into existing applications.
- Launched Renoworks PRO, a software-as-a-service (SaaS) offering for contractors and interior designers that allows users to create professional designs of interior and exterior remodel projects for homeowners.
- In 2016, Renoworks entered key industry partnerships to enhance the Company’s suite of visualization solutions, including MarketSharp and Tilelook.
- Converted revolving note receivable resulting in a 33 1/3% ownership of Remote Sales Force Inc., a brand new service integrating the Company’s visualizer technology with Remote Sales Force’s SaaS functionality enabling contractors to sell remodel projects remotely.
Subsequent Events
On January 6, 2017 the Company announced closing of a $1.1 million private placement to strengthen the Company’s balance sheet, fund business/product development and its strategic partnership with Remote Sales Force.
Doug Vickerson, CEO of Renoworks, stated, “We accomplished many goals we set out to do in 2016 and these financial results demonstrate the good growth we are seeing in our business. Our revenues hit record highs over the past year and we are well positioned to reach levels of profitability that we are targeting. Our strategic decision to launch our new SaaS offering, Renoworks PRO and partner with Remote Sales Force are ways to tap into the large opportunity in the contractor market. With that said, we believe we are just getting started and management remains focused on growing our different lines of business to deliver continued growth in 2017 and beyond.”
Financial results from operations for the fourth quarter 2016 with comparatives for 2015 are as follows:
| Three Months Ended December 31 | ||||
| 2016 | 2015 | |||
| Revenue | $ | 726,957 | $ | 434,031 |
| Gross Margin | $ | 521,139 | $ | 253,712 |
| Expenses | $ | 544,711 | $ | 586,137 |
| Loss | $ | 70,915 | $ | 331,812 |
| Loss per share | $ | 0.001 | $ | 0.010 |
| Weighted Average Shares Outstanding | 29,086,428 | 27,519,506 | ||
Financial results from operations for the year ended December 31, 2016 with comparatives for 2015 are as follows:
| Twelve Months Ended December 31 | ||||
| 2016 | 2015 | |||
| Revenue | $ | 2,782,940 | $ | 2,110,083 |
| Gross Margin | $ | 2,115,255 | $ | 1,551,589 |
| Expenses | $ | 2,118,687 | $ | 1,936,080 |
| Loss | $ | 119,748 | $ | 360,475 |
| Loss per share | $ | 0.005 | $ | 0.01 |
| Weighted Average Shares Outstanding | 29,086,428 | 27,519,506 | ||
| Cash used in operations | $ | 128,517 | $ | 250,273 |
The Company’s financial position as of December 31, 2016 with comparatives from 2015 is as follows:
| December 31, 2016 | December 31, 2015 | |||||
| Cash Balance | $ | 348,036 | $ | 536,337 | ||
| Accounts Receivable | $ | 429,989 | $ | 254,943 | ||
| Working Capital | $ | 328,795 | $ | 357,085 | ||
| Deferred Revenue | $ | 392,904 | $ | 306,709 | ||
| Long-term liabilities | $ | 163,780 | $ | 241,284 | ||
| Shareholder’s Equity | $ | 209,433 | $ | 151,878 | ||
| Deficit | $ | (5,438,497 | ) | $ | (5,318,749 | ) |
| Total Assets | $ | 1,901,085 | $ | 837,840 | ||
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 three main business lines: enterprise, Renoworks PRO™, and its Software Development Kit (SDK). 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.
Doug Vickerson
CEO
403-296-3880
[email protected]
www.renoworks.com
For investor information: Contact Financial Corp.
Rob Gamley
604-689-7422
[email protected]
