PUDO Inc. reports FY 2022 third quarter end results and outlook

• Revenue up 13.2% to $549,063 this quarter compared to the third quarter of FY 2021
• Third quarter net loss decreased by $245,857 to $295,978 relative to the third quarter of FY 2021
• Q3 FY 2022 overall parcel volume increased by 17.8% relative to the same quarter in the prior year

TORONTO, Jan. 31, 2022 /CNW/ - PUDO Inc. ("PUDO" or the "Company") (CSE: PDO) (OTCQB: PDPTF), North America's only carrier neutral parcel pick-up and drop-off network (the "Network"), today filed interim financial results (unaudited) and operational highlights for its third quarter which ended November 30, 2021 ("Q3 FY 2022").

A summary of selected financial information for the three and nine month periods ended November 30, 2021 and 2020 is included below:

PUDO Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
(Unaudited)

			Three Months Ended       November 30,			Nine Months Ended          November 30,
			2021	2020		2021	2020
Revenue			$      549,063	$    485,087		$   1,512,344	$ 1,068,405
Cost of sales			(392,353)	(343,226)		(1,058,694)	(722,179)
Gross profit			156,710	141,861		453,650	346,226
Administrative expenses			(417,503)	(604,558)		(1,294,352)	(1,345,166)
Share‑based compensation*			(35,185)	(80,874)		(175,927)	(198,448)
Operating loss			(295,978)	(543,571)		(1,016,629)	(1,197,388)
Finance costs			-	(1,264)		(333)	(10,249)
Net loss and comprehensive loss for the period			$     (295,978)	$  (544,835)		$ (1,016,962)	$(1,207,637)
Loss per share ‑ basic and diluted			$           (0.01)	$        (0.02)		$          (0.04)	$        (0.04)
Weighted average number of shares outstanding ‑ basic and dil uted			27,117,584	26,846,016		27,117,584	26,846,016

*non-cash expense related to the amortization of performance options for directors, management, and employees.

Revenue increased by 41.6% over the same nine months in the prior year, as a result of the increase in returns, FPU, and 3PL PUDO services. Revenue increased by 13.2% over the same three-month period last year due to new partner volumes and the successful sale of additional PUDO services to other partners.

Gross profit increased 10.5% for the three-month period ended November 30, 2021 over the same period last year.  Gross profit increased by 31.0% for the nine-month period ended November 30, 2021 over the same period in the prior year.  These increases are a result of increased use of PUDOpoint Counters by courier partners and for 3PL parcel shipment processing and the fixed costs associated with the shipping fees, which generates a lower gross profit margin than PUDO's FFA, FPU, and border member parcels.

During the three-month period ended November 30, 2021, the Company reported a decrease in the net loss of $295,978 ($0.01 basic and diluted loss per share), compared with the corresponding quarter in the prior fiscal year. Most of this decreased loss was attributable to an increase in revenues and gross profit, offset by decreases in administrative expenses.

The net loss for the nine months ended November 30, 2021 was $1,016,962 ($0.04 basic and diluted loss per share), a decrease of $190,675 from a net loss of $1,207,637 ($0.04 basic and diluted loss per share) in the corresponding quarter in the prior fiscal year, primarily due to a decrease in salaries and benefits costs and administrative expenses overall and non-cash share-based compensation, and by increased revenues and gross profit relative to the corresponding period of the prior fiscal year.

Outlook

The Company anticipates that the PUDO Label and returns service will be a driver of growth during the last quarter of FY 2022 and continue into fiscal year 2023.  The PUDO returns service enables retailers to utilize the PUDOpoint Network for drop off of returns parcels that are then collected and consolidated by PUDO and then distributed as per the retailers' requirements.  With a successful completion of the PUDO Label returns service in Canada, the Company is preparing to launch the same service in the United States to support their current retail customers that have requested this service within the US.  In addition, the current US PUDOpoint Network being utilized by a large e-commerce retailer is enabling the growth of the Direct to PUDO service that allows retailers to utilize the PUDOpoint Counters Network as secure and safe drop off locations that are also able to meet the "age and identity verification" requirements required by new US legislation for certain products.

Frank Coccia, CEO, PUDO Inc. announces that the upcoming year is shaping up to have the results the Company has been looking to achieve. "Every one of our clients is projecting great numbers. We're getting into the export business in a big way. Our Vaping Sector started off a bit slow but is now starting to show some optimistic results. Our Returns business is growing without limit. We already have contracts to onboard new businesses on a continual basis from now until late Summer 2022. Our new client list now includes some of the world's most recognized brands and some of the world's biggest e-commerce businesses. Best of all, we're enjoying great relationships with our clients and stakeholders, which gives us a solid foundation for our financial optimism."

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For more information, please visit www.pudoinc.com or www.pudopoint.com

About PUDO Inc.
PUDO Inc. is North America's only carrier-neutral parcel pick-up and drop-off counter Network, conceived to resolve the last-mile parcel-traffic-control gridlock that challenges North America's over $800B retail e-commerce sector, and eliminate over $6B in door-dropped parcel theft.

PUDO's team of logistics and parcel traffic management experts have created a plug-and-play, pay-as-you-go platform and Network of parcel pick-up and drop-off storefront counters known as PUDOpoint Counters, strategically located very near to where people live, work and play.

The PUDO model reduces or eliminates crippling last-mile related expenses for online retailers, marketplaces and carrier/delivery partners, with fulfillment and distribution solutions that include parcel storage and consolidation for click-and-collect deliveries, online returns, and the nearly 35% of e-commerce parcels that are undeliverable on first attempt.

Membership in the PUDOpoint Counters Network program offers consumers 'parcel receipt certainty,' early/late/weekend pick-up and return convenience, 100% elimination of door-drop parcel theft, and a mobile home-away-from-home address Network that goes wherever they do.

The PUDOpoint Counters Network provides all carriers, retailers, and consumers with badly needed cost controls, choice, and convenience.

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, such as statements regarding estimated revenues from new contracts, increased parcel volume, activation and implementation of PUDO's technology and possible future expansions of PUDO's operations. This information is based on current expectations and assumptions of management, including assumptions concerning PUDO's ability to integrate its new customers into its network and successfully execute on its new and existing contracts. The use of any of the words "anticipate", "believe", "expect", "plan", "intend", "can", "will", "should", and similar expressions are intended to identify forward-looking statements. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Factors that could cause actual results to differ materially from such forward-looking information include, without limitation, uncertainties with respect to service implementation, the economic results of the relationship on the operations of the Company, changes in general economic, market, or business conditions, and those risks set out in the Company's public documents filed on SEDAR. This press release, in particular the information in respect of estimated revenues, may contain future-oriented financial information or financial outlook within the meaning of applicable securities laws. Such future-oriented financial information or financial outlook has been prepared for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by law.

 

SOURCE PUDO Inc.

Karen Speight, [phone], [email protected]