• Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Cision Canada
  • News
  • Products
    • Overview
    • Cision Communications Cloud®
    • Monitoring
    • Distribution
    • Multimedia
    • Measurement & Analytics
    • IR
  • Contact
    • Become a Client
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • General Enquiries
    • Media

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
    Advanced Search
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company


      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos


      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics


  • Business
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation


      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors


      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital


      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News


      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications


      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities


      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters


      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco


      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications


      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys


      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine


      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories


      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry


      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy


      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women


      • People & Culture Overview
  • Overview
  • Cision Communications Cloud®
  • Monitoring
  • Distribution
  • Multimedia
  • Measurement & Analytics
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO

      Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Cision Communications Cloud®
  • Monitoring
  • Distribution
  • Multimedia
  • Measurement & Analytics
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

exactEarth Announces Q4 and Year-End Fiscal 2018 Financial Results

exactEarth Ltd. (CNW Group/exactEarth Ltd.)

News provided by

exactEarth Ltd.

Jan 25, 2019, 06:30 ET

Share this article

Share this article


  • Q4 Revenue Increases 32% Year-Over-Year to $3.8 million
  • Revenue Backlog Increases 21% Year-Over-Year to $31.5 million

CAMBRIDGE, ON, Jan. 25, 2019 /CNW/ - exactEarth Ltd. ("the Company"), a leading provider of Satellite AIS ("S-AIS") data services, announces its financial results for the three- and twelve-month periods ended October 31, 2018. All financial figures are in Canadian dollars unless otherwise stated.

Q4 and Fiscal 2018 Highlights:

  • Q4 2018 revenue was $3.8 million, up 32% compared to $2.9 million in Q4 2017. Fiscal 2018 revenue was $13.0 million, up 1% compared to $12.8 million in Fiscal 2017;
  • Subscription-based revenue was 90% of total revenue in Q4 2018 (Q4 2017: 94%) and 87% of total revenue in Fiscal 2018 (Fiscal 2017: 83%);
  • Subscription-based revenue increased 27% in Q4 2018 compared to Q4 2017, and 6% in Fiscal 2018 compared to Fiscal 2017;
  • Revenue backlog was $31.5 million at year-end, compared to $26.0 million at the end of Fiscal 2017 and $29.3 million at the end of Q3 2018;
  • Adjusted EBITDA* was $1.0 million in Q4 2018 compared to ($1.4) million in Q4 2017. Fiscal 2018 Adjusted EBITDA was ($3.2) million compared to ($4.4) million in Fiscal 2017;
  • Cash balance was $4.8 million at year-end compared to $8.1 million at the end of Fiscal 2017 and $3.5 million at the end of Q3 2018;
  • Increased the number of exactView RT payloads to 51, achieving real-time S-AIS performance with message latency of less than one minute;
  • Announced the first commercial and fully-operational AIS payload onboard a radar satellite with the launch and commissioning of the Spanish radar satellite, PAZ;
  • Entered into an alliance agreement with IHS Markit (NASDAQ: INFO) to launch AIS Platinum, which offers unprecedented frequency and coverage of vessel movements worldwide;
  • Government of Canada's Strategic Innovation Fund ("SIF") committed to an investment of up to $7.2 million over three years to support the development, management and expansion of exactView RT;
  • Subsequent to year-end, completed a $13.0 million private placement of convertible debentures to strengthen the balance sheet and support exactView RT growth plans; and
  • Subsequent to quarter-end, the final launch of the Iridium NEXT constellation successfully took place with ten more exactView RT payloads onboard.

"Driven by the growing adoption of our real-time S-AIS service, exactView RT, our revenue trend was favourable in 2018, which culminated in Q4 results that generated a significant year-over-year increase in subscription revenue and in our order backlog," said Peter Mabson, President & CEO of exactEarth. "In 2018, we also took positive steps to strengthen our balance sheet and reduce our cash burn. The SIF funding announcement in Q4 and private placement financing completed shortly after Q4 provide the Company with significant financial flexibility and approximately $20.0 million in capital to support operational and growth initiatives. Of note, the SIF payment of $1.2 million in Q4 represented a catch-up from Q2 through the end of the fiscal year, so quarterly SIF payments will be more moderate going forward." 

Mr. Mabson continued: "Looking out to 2019, our agreement with Harris Corp will come into full-effect and we expect to have all 58 payloads in our second-generation constellation fully-operational. We believe we have a significant growth opportunity in front of us and we will continue to leverage the unique real-time capabilities of exactView RT to develop and launch new analytics products and to maintain sales momentum in our core S-AIS market, while further expanding our footprint in the broader maritime information services market." 

Q4 and Fiscal 2018 Financial Review

Total revenue in the three-month period ended October 31, 2018 ("Q4 2018") was $3.8 million compared to $2.9 million in the three-month period ended October 31, 2017 ("Q4 2017"). Total revenue in Fiscal 2018 was $13.0 million compared to $12.8 million in Fiscal 2017.

Order bookings in Q4 and Fiscal 2018 were $5.4 million and $16.9 million compared to $3.0 million and $17.3 million in Q4 and Fiscal 2017, respectively. Order bookings will fluctuate on a quarter-to-quarter basis reflecting the timing to complete new customer agreements. Revenue backlog at October 31, 2018 increased to $31.5 million compared to $29.3 million at the end of Q4 2018 and $26.0 million at the end of Fiscal 2017.

Subscription Services revenue in Q4 2018 was $3.4 million, up 27% compared to $2.7 million in Q4 2017. Subscription Services revenue for Fiscal 2018 was $11.3 million, up 6% compared to $10.6 million in Fiscal 2017. Excluding $0.09 million of non-cash revenue in the Fiscal 2018 period that resulted from the trade of AIS subscription data for data processing services and the $0.62 million in Fiscal 2017 non-cash revenue associated with an Asset Transfer Agreement (whereby we provided in-kind datasets, not licensed for commercial use to Communitech, in exchange for title to the EV-9 satellite), Subscription Services revenue increased by $1.2 million, or 12%, in Fiscal 2018.

Subscription Services revenue in Q4 2018 represented 90% of total revenue (Fiscal 2018: 87%) compared to 94% in Q4 2017 (Fiscal 2017: 83%). Subscription Services revenue from commercial customers rose 35% in Q4 2018 and, excluding non-cash revenue, rose 15% in Fiscal 2018 compared to the same periods last year. Excluding the non-cash Subscription Services revenue generated in Fiscal 2017, Subscription Services revenue from government customers would have risen 19% and 9%, respectively, for the three- and twelve-month periods ended October 31, 2018.

Data Products revenue in Q4 2018 was $0.26 million compared to $0.13 million in Q4 2017. Data Products revenue for Fiscal 2018 was $0.97 million compared to $0.99 million in Fiscal 2017. Data Products revenue is generated from on-demand customer requests, which results in some variability in quarter-to-quarter revenue levels.

Other Products & Services revenue in Q4 2018 was $0.11 million compared to $0.04 million in Q4 2017. Other Products & Services revenue for Fiscal 2018 was $0.69 million compared to $1.2 million in Fiscal 2017. The decrease is primarily due to the timing of delivery of services related to the Company's ongoing small-vessel opportunities.

Gross Margin in Q4 2018 was 60% compared to 30% in Q4 2017. Gross Margin stayed relatively flat for Fiscal 2018 at 33%. Q4 2018 Gross Margin improved year-over-year due to higher revenue and lower cost of revenue. Cost of revenue decreased due to $1.2 million of SIF funding received from the Canadian government to offset costs related to the development and roll-out of exactView RT, the Company's real-time S-AIS service. The SIF funding reflected the period from February 13, 2018 through September 30, 2018. Additional SIF funding payments are expected in the 2019, 2020 and 2021 fiscal years. Detailed information regarding the SIF funding can be found on the Company's website in a press release dated October 19, 2018.   

Selling, general and administrative ("SG&A") expense in Q4 2018 was $0.97 million compared to $1.9 million in Q4 2017. SG&A for Fiscal 2018 was $6.3 million, compared to $7.0 million in Fiscal 2017. SG&A expense decreased year-over-year due to reversal of bad debt, reduced Restricted Share Unit, Deferred Share Unit and stock option expense, decreased spending on conference, travel and consulting and moving expenses, partially offset by increased selling expenses and professional fees.

Product development and research and development ("R&D") expense in Q4 2018 was $0.18 million compared to $0.36 million in Q4 2017. Product development and R&D expense for Fiscal 2018 was $1.4 million, compared to $1.7 million in Fiscal 2017. The Company's product development and R&D activities are currently focused primarily on the development of web-based functionality, data processing capabilities and analytics-based product offerings.

Adjusted EBITDA for Q4 2018 was $1.0 million compared to ($1.4) million in Q4 2017. Adjusted EBITDA for Fiscal 2018 was ($3.2) million, compared to ($4.4) million in Fiscal 2017. The year-over-year improvement in Adjusted EBITDA for Q4 2018 and Fiscal 2018 was due to higher revenue, the $1.2 million in SIF funding which offset certain cost of revenue expenses, lower SG&A expense and lower product development and R&D expense. (Adjusted EBITDA is a non-IFRS measure and is defined below)

Net loss for Q4 2018 was ($10.3) million, or ($0.48) per share, compared to ($29.0) million, or ($1.34) per share, in Q4 2017. Net loss for Fiscal 2018 was ($16.2) million, or ($0.75) per share, compared to ($33.8) million, or ($1.57) per share, in Fiscal 2017. Net loss for Q4 and Fiscal 2018 included a non-cash $10.9 million, or $0.50 per share, impairment charge, while the net loss for Q4 and Fiscal 2017 included a non-cash $26.9 million, or $1.24 per share, impairment charge. More information on the impairment charges can be found in the Company's Management Discussion and Analysis ("MD&A"), which is on the exactEarth website (www.exactearth.com) and the Sedar website (www.sedar.com).

Excluding the impairment charges in 2018 and 2017, the Company would have generated a net loss of ($5.3) million in Fiscal 2018 and a net loss of ($6.9) million in Fiscal 2017. The year-over-year improvement is due primarily to increased revenue, the SIF contribution which offset Cost of Revenue and lower expenses for SG&A, product development and R&D, and depreciation and amortization.

exactEarth generated $0.2 million of cash in operations in Q4 2018 compared with $1.6 million of cash used in operations in Q4 2017. For Fiscal 2018, exactEarth used $3.0 million of cash in operations, compared to $7.7 million of cash used in operations in Fiscal 2017. The Company's cash balance at October 31, 2018 was $4.8 million compared to $3.5 million at the end of Q3 2018 and $8.1 million at October 31, 2017.

As at October 31, 2018, the Company had 21,626,288 shares outstanding on a non-diluted basis. 

Subsequent Event

On December 13, 2018, the Company completed an offering of Convertible Debentures at a price of $1,000 per Convertible Debenture for gross proceeds of $13.0 million. The Convertible Debenture Financing represented the culmination of an extensive review of strategic alternatives by the Special Committee of the Board of Directors, which will provide the Company with a solid financial foundation from which to pursue its growth opportunities. Each Convertible Debenture is convertible into 2,000 Common Shares of the Company, being an effective conversion price of $0.50 per share at the option of the holder (subject to customary adjustments from time to time), at any time prior to the fifth anniversary of the closing date. The proceeds from the Convertible Debenture Financing will be used to fund the Company's ongoing working capital needs in support of business operations and for growing the customer base for exactView RT, which is the only real-time S-AIS service on the market today. For additional information on this financing, see the Company's press releases dated December 4, 2018, and December 13, 2018, and/or refer to note 21 (Subsequent events) in the Notes to the Consolidated Financial Statements, which can be found on the Company's website and the SEDAR website.

*Non-IFRS Measures

We measure Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization ("EBITDA"), plus offering related expenses, unrealized foreign exchange losses, share-based compensation costs, restructuring costs and impairment losses, less unrealized foreign exchange gains and gains from insurance settlements. We believe that Adjusted EBITDA provides useful supplemental information as it provides an indication of the income generated by our main business activities before taking into consideration how they are financed or taxed and exclude the impact of items that are considered by management to be outside of the Company's ongoing operating results. Adjusted EBITDA should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indicator of our performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows.

We define Subscription Revenue as the dollar sum of fully executed contracts for our products and/or services to our customers that are subscription-based, typically sold with a one-year period of service and recognized in our "Subscription Services" segmented revenue.

Adjusted EBITDA (000's)


 Three months ended 

 Year ended 


October 31, 2018

October 31, 2017

October 31, 2018

October 31, 2017


 Net loss 

$

(10,322)

$

(28,966)

$

(16,223)

$

(33,834)


 Interest income 


(5)


(20)


(38)


(79)


 Interest expense 


14


29


72


131


 Income tax expense 


30


8


152


24


 Depreciation and amortization 


451


916


1,699


3,791


 EBITDA  

$

(9,832)

$

(28,033)

$

(14,338)

$

(29,967)


 Unrealized foreign exchange (gain) loss 

72


(432)


(53)


(376)


 Share-based compensation 


(168)


173


298


624


 Impairment losses 


10,885


26,886


10,885


26,886


 Restructuring costs 


-


(12)


(2)


(99)


 Other Income 


-


-


-


(1,455)


 Adjusted EBITDA 

$

957

$

(1,418)

$

(3,210)

$

(4,387)


About exactEarth Ltd.

exactEarth is a leading provider of global maritime vessel data for ship tracking and maritime situational awareness solutions. Since its establishment in 2009, exactEarth has pioneered a powerful new method of maritime surveillance called Satellite AIS ("S-AIS") and has delivered to its clients a view of maritime behaviours across all regions of the world's oceans unrestricted by terrestrial limitations. exactEarth has deployed an operational data processing supply chain involving a constellation of satellites, receiving ground stations, patented decoding algorithms and advanced "big data" processing and distribution facilities. This ground-breaking system provides a comprehensive picture of the location of AIS equipped maritime vessels throughout the world and allows exactEarth to deliver data and information services characterized by high performance, reliability, security and simplicity to large international markets. For more information, visit exactearth.com.

Forward-Looking Statements

This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements may include financial and other projections, as well as statements regarding exactEarth's future plans, our ability to continue as a going concern, objectives or economic performance, or the assumptions underlying any of the foregoing, including statements regarding, among other things, expectations of our exactView RT offering relative to competitors, timing of the achievement of real-time global vessel tracking via our second-generation constellation, timing expectations with respect to launch of satellites, expectations of the exactView RT capabilities driving growth, growth opportunities for the Company in the maritime information services market, the outcome of the election of directors and the outcome of a strategic review process. exactEarth uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by exactEarth in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors exactEarth believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to exactEarth's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause exactEarth's actual results, historical financial statements, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of exactEarth's customers; the competition exactEarth faces in its industry and/or marketplace; the further delayed launch of satellites; the reduced scope of significant existing contracts; and the possibility of technical, logistical or planning issues in connection with the deployment of exactEarth's products or services.

exactEarth™ Ltd.

 Consolidated Statements of Financial Position

(in thousands of Canadian dollars)





As at

October  31,


As at

October 31,




2018


2017




$


$

ASSETS





Current assets






Cash and cash equivalents


4,774


8,117


Short-term investments


49


-


Trade accounts receivable


3,491


3,171


Unbilled revenue


911


613


Prepaid expenses and other assets


654


1,266

Total current assets


9,879


13,167








Property, plant and equipment


4,009


12,576


Intangible assets


1,720


5,405


Other long-term assets


16


-

Total assets


15,624


31,148







LIABILITIES & SHAREHOLDERS' EQUITY





Current liabilities






Accounts payable and accrued liabilities


4,780


3,722


Deferred revenue


2,412


2,252


Restructuring provision


-


388


Loans payable - current


459


567


Long-term incentive plan liability - current


11


166

Total current liabilities


7,662


7,095








Government loans payable


498


662


Long-term incentive plan liability


162


343


Other long-term liabilities 


95


45

Total liabilities


8,417


8,145







Shareholders' equity






Share capital


123,794


123,781


Contributed surplus


1,451


1,070


Accumulated other comprehensive loss


(11)


(44)


Deficit


(118,027)


(101,804)

Total shareholders' equity


7,207


23,003







Total liabilities and shareholders' equity


15,624


31,148







exactEarth™ Ltd.

 Consolidated Statements of Loss and Comprehensive Loss

(in thousands of Canadian dollars except for per share figures)





Three months ended 


Year ended 




October 31,


October 31,


October 31,


October 31,




2018


2017


2018


2017




$


$


$


$






















Revenue


3,769


2,852


12,955


12,833


Cost of revenue


1,497


1,998


8,633


8,618


Gross profit


2,272


854


4,322


4,215











Operating expenses










Selling, general and administrative


966


1,924


6,255


7,004


Product development and research and development


180


364


1,418


1,692


Depreciation and amortization


451


916


1,699


3,791


Impairment losses


10,885


26,886


10,885


26,886

Loss from operations


(10,210)


(29,236)


(15,935)


(35,158)











Other expenses (income)










Other income


-


-


-


(1,455)


Other expense


(12)


-


49


197


Restructuring expense (recovery)


-


(12)


(2)


(99)


Foreign exchange loss (gain)


85


(275)


55


(43)


Interest income


(5)


(20)


(38)


(79)


Interest expense


14


29


72


131

Total other expenses (income)


82


(278)


136


(1,348)


Income tax expense


30


8


152


24

Net loss


(10,322)


(28,966)


(16,223)


(33,834)











Other comprehensive income (loss)










Item that may be subsequently reclassified to net loss:










Foreign currency translation, net of income tax expense of nil


46


(69)


33


(89)

Total other comprehensive income (loss)


46


(69)


33


(89)











Comprehensive loss


(10,276)


(29,035)


(16,190)


(33,923)











Loss per share










Basic and diluted loss per share


(0.48)


(1.34)


(0.75)


(1.57)

exactEarth™ Ltd.

Interim Condensed Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

unaudited




Three months ended 


Year ended 




October 31,


October 31,


October 31,


October 31,




2018


2017


2018


2017




$


$


$


$












Net loss


(10,322)


(28,966)


(16,223)


(33,834)

Add (deduct) items not involving cash










Non-monetary transaction


15


-


-


(618)


Non-cash interest


14


27


72


126


Depreciation and amortization


451


928


1,699


3,791


Impairment losses


10,885


26,886


10,885


26,886


Loss on disposal of assets


-


-


-


3


Gain on insurance settlement


-


-


-


(1,455)


Operating grant recognized on SIF loan


(1,154)


-


(1,154)


-


Technology demonstration program recovery


-


(99)


(202)


(381)


Long-term incentive plan expense


(230)


1


43


245


Stock-based compensation


62


90


255


380


Restructuring reserve - revaluation


-


-


(2)


(99)


Net change in non-cash working capital balances


480


(356)


1,806


(2,347)

Other operating cash flows










Technology demonstration program funding received


-


99


407


817


Settlement of restricted share units


-


-


(238)


(112)


Restructuring provision - payment of salary continuance


-


(174)


(386)


(1,109)

Cash flows used in operations


201


(1,564)


(3,038)


(7,707)











Investing activities










Acquisition of property, plant and equipment


(290)


(344)


(1,455)


(780)


Reimbursement of acquisition costs of property, plant and equipment


63


-


315


396


Insurance recovery


-


-


-


3,500


Acquisition of intangible assets


-


58


(28)


(121)

Cash flows (used in) from investing activities


(227)


(286)


(1,168)


2,995











Financing activities










Government loan repayment


(123)


(82)


(533)


(451)


Government loan advances


1,425


-


1,425


-


Long-term debt repayment


-


(88)


(145)


(350)


Purchase of short-term investments


(49)


-


(49)


-

Cash flows used in financing activities


1,253


(170)


698


(801)











Effect of exchange rate changes on cash


94


80


165


(50)











Net decrease in cash


1,321


(1,940)


(3,343)


(5,563)

Cash, beginning of the period


3,453


10,057


8,117


13,680

Cash, end of the period


4,774


8,117


4,774


8,117











Supplemental cash flow information










Interest received


5


20


38


79


Income taxes paid


30


8


152


24











exactEarth™ Ltd.

Consolidated Statements of Changes in Shareholders' Equity

(in thousands of Canadian dollars)


For the year ended October 31, 2018

Total


Deficit

Accumulated

Other

Comprehensive

Income (Loss)

Share

Capital


Contributed

Surplus



$


$


$

$


$

Balance at October 31, 2017

23,003


(101,804)


(44)


123,781


1,070


Stock-based compensation expense

255


-


-


-


255


Restricted share unit expense and transfer

139


-


-


-


139


Issuance of common shares

-


-


-


13


(13)


Comprehensive income (loss)

(16,190)


(16,223)


33


-


-

Balance at  October 31, 2018

7,207


(118,027)


(11)


123,794


1,451












For the year ended October 31, 2017





















Balance at October 31, 2016

56,543


(67,970)


45


123,769


699


Stock-based compensation expense

380


-


-


-


380


Issuance of common shares

3


-


-


12


(9)


Comprehensive loss

(33,923)


(33,834)


(89)


-


-

Balance at  October 31, 2017

23,003


(101,804)


(44)


123,781


1,070












SOURCE exactEarth Ltd.

For further information: Contact information: INVESTORS: Dave Mason, Investor Relations, Tel: +1 416-247-9652, [email protected]

Related Links

http://www.exactearth.com/

Modal title

Organization Profile

exactEarth Ltd.

    Also from this source

  • exactEarth to Announce Q1 Fiscal 2021 Financial Results...

  • exactEarth Announces Conversion of 2023 Debentures...

  • exactEarth Announces Redemption of 2023 Convertible Unsecured...

    Contact Cision

  • 877-269-7890
    from 8 AM - 10 PM ET

    • Become a Client
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • General Enquiries
    • Media
    • Worldwide Offices

    Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

    About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers

    My Services

  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Contact Cision


Products


About


My Services
  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2021 CNW Group Ltd. All Rights Reserved. A Cision company.