Company expands rapidly in USA and grows Canadian Market presence
TORONTO, March 12, 2019 /CNW/ - Nerds on Site Inc. (the "Company") (CSE: NERD) (FSE: 3NS.F), a mobile IT solutions company servicing the SME marketplace, is pleased to provide shareholders with an update from CEO Charles Regan.
Nerds on Site IT solutions for small and medium sized business has generated over $160M in historical sales across Canada. Upon the Company's successful IPO in November 2018 NERDS has started its planned expansion to 10 cities in the USA, building upon working relationships with tens of thousands of existing small business Clients and leveraging 10+ year working relationships with Google, Apple, Amazon, DELL and Microsoft.
Within the first 3 months post IPO, the Company has made substantial progress on multiple fronts of the planned development. It typically takes 6-12 months to sign a long term NerdCare contract, as those are in process in the USA, our new US based NERDS are already excelling in on-call jobs and NerdMobile sighting call in requests. Specific areas of expansion include Florida, Arizona and further expansion in our mature market of Canada. Growth with existing clients in Canada, highlighted by Canadian Tire, indicates significant upside in addition to expansion into Metro Vancouver and 3 additional Canadian Cities.
Overall our ability to scale our proven business model over the previous quarter indicates strong prospects through our North American expansion plans, all of which have the potential to significantly boost shareholder value as we continue to execute in 2019.
- Immediate results in Florida and Arizona with a team of new NERDS in action, proceeding toward full franchise status. The first 15 NERDS that we have signed up represent "franchisees to be" pending the Company's completion of the ongoing process of filing franchise documents with individual states.
- 102% revenue increase overall with USA growth, quarter over quarter.
- Significant growth in Canada with key long-term client, Canadian Tire, with the goal of total 290 stores served in fiscal 2020. Currently the Company services 226 Canadian Tire stores, therefore we expect double digit, or close to 22% increase in stores served in fiscal 2020. This number is very feasible as it represents the addition of one store per week, which has been achieved by the team historically.
- Expansion to Vancouver and 3 additional Canadian Cities. Although no long-term contract has been entered in these new areas yet, the build out is in line with previous successful expansions for the Company.
- Emphasis on stable contract revenue promises the expected increase of contract revenue by 11%, or up to 68% from Total Revenue in fiscal 2019.
USA Expansion Update, New NERD Team USA shall increase the revenues by 150%+ over fiscal year
The Company successfully vetted, trained and launched 15 new NERDS (technicians), 9 in Florida and 6 in Arizona.
New NERDS are provided with NerdMobiles, fully branded VW Beetles which the company has leased and delivered to FL and AZ. The Company is extremely pleased to be able to kick start the initial NERD team USA with a worry-free lease program. Initial NERD team members have a 37% revenue split, exactly as planned in the roll out schedule. It is anticipated that within 6 months new NERDS will transition to 50/50 revenue split for the long term, in addition to assuming lease payments. The 6 months lease turn over estimate is based on historic results in Canada.
Canadian Update – 11% more contract revenue, New Canadian Tire push, new cities planned
Our Canadian team has made significant progress in the last 3 months. Contract recurring revenue target for fiscal year end 2019 is up by 11% with a goal to continue to grow our contract business.
Our Canadian Tire team is ramping up efforts to extend NerdCare managed service coverage to an increasing number of our Canadian Tire dealers. Currently, we are serving 226 out of 493 Canadian tire stores in Canada. Our team is targeting to add 1 new Canadian Tire store per week during 2019, which shall bring the total number of stores to our goal of 290 by the end of 2019.
Besides the high standard of service, and high satisfaction of the existing Canadian Tire dealer clients, the "TimeWellScheduled" time management tool, has proven to be a solid door opener with the Canadian Tire Dealers.
With heightened interest following the IPO, management has decided to expand to 4 more Canadian cities. The first city targeted for expansion is Vancouver BC. Having received strong support in that market leading up to and following the IPO. Scaling the business in the Vancouver market will follow tried and true growth principles and practices that have served NERDS ON SITE throughout its history.
CEO, Nerds On Site
About Nerds On Site:
Nerds on Site, a company founded in 1995, specializes in providing cost effective, leading edge solutions to Small and Medium sized Enterprise (SME), serving as the complete SME IT solution specialists. Nerds on Site was established in London, Ontario with current annual revenues of approximately $10,000,000. The company services over 12,000 clients per year with a superb 96.5% customer satisfaction rating. NOS's business model is based on Nerds sub contracts in Canada and a Franchise model for USA expansion.
Forward Looking Statements - Certain information set forth in this material may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE Nerds On Site Inc.
For further information: Mr. Charles Regan, CEO of Nerds on Site; Please visit www.investors.nerdsonsite.com, Call 1-877-778-2335, or email IR@nerdsonsite.com.