Renoworks announces 2017 first quarter financial results

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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.

For further information: For investor information please contact: Doug Vickerson, CEO, Phone: 403-296-3880, Email: doug.vickerson@renoworks.com, Renoworks Software Inc., 2816 -21st Street NE, Suite 7, Calgary, Alberta, Canada T2E 6Z2; For investor information please contact: Rob Gamley, Phone: 604-689-7422, Email: rob@contactfinancial.com, Contact Financial Corp., 1450 - 701 West Georgia St., Vancouver, BC, Canada V7Y 1G5


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