[January 23, 2018] |
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Bluedrop Releases 2017 Year End Financial Results
Bluedrop Performance Learning ("Bluedrop") (TSX-V: BPLI) today reported
its audited financial results for the year ended September 30, 2017.
Revenue for the year ended September 30, 2017 was $23.4 million down
from $24.8 million, a decrease of 6%. Gross profit for the year was
$10.1 million down from $11.4 million, a decrease of 12%. Pre-tax income
for the year was $2.0 million versus $1.4 million in the prior year an
improvement of $0.6 million. After tax income for the period was $2.7
million as compared to $1.0 million in the prior year. Management's
Discussion and Analysis for the year ended September 30, 2017, which are
available on the Company's web site at http://www.bluedrop.com
or on SEDAR at http://www.sedar.com.
The Company reported reduced revenues and gross profit, while achieving
record levels of pre-tax and net income for the year ending September
30, 2017. Expenses were reduced by $2.7 million in the year across all
categories including financing costs but excluding government
assistance. A reduction in a valuation allowance for tax purposes of
$1.3 million reduced deferred income taxes in the year and improved net
income for the year accordingly. During the year the Company continued
to strengthen its balance sheet and significantly reduced its financing
costs. The Company ended the year with positive working capital,
unrestricted cash of $2.1 million, restricted cash of $3.0 million and
no draw on its banking line. Subsequent to year end it made an early
repayment of the $3.0 million to retire its outstanding convertible
debenture with Difference Capital that will further reduce financing
costs going forward.
The Company bought back 2.1 million shares for total consideration of
$0.4 million by way of the normal course issuer bid and Difference
Capital converted $0.5 million of their convertible debenture for 3.5
million shares.
The Company continued to make significant investments in research and
development in the year of $2.9 million versus $3.9 million in the
previous year. The Training and Simulation group invested $1.6 million
in the year down from $2.4 million in the previous year. Most of these
investments continued with the development of the Rear Crew Mission
Triner (RCMT) for the Chinook helicopter as part of its ongoing
development program with The Boeing (News - Alert) Corporation ("Boeing") and for the
new stand-alone hoist and gunnery trainer products. The RCMT
demonstration unit was successfully delivered to Boeing at its facility
in Philadelphia in September. The Learning Networks group invested $1.3
million in research and development that was fully expensed in the
period versus an investment of $1.5 million in the prior year. Learning
Networks continues to build its capabilities for a unique SaaS (News - Alert) based
platform for the health and safety compliance and workforce markets.
Commenting on the overall results and progress for the year, founder and
CEO Emad Rizkalla said, "This was another good year for Bluedrop
financially and at the same time we continued to make strong investments
in our strategy to transform Bluedrop into more of a product and
proprietary technology based company. We achieved new financial highs
with good cost controls, reduced financing costs, and we continue to
strengthen our balance sheet. The Training and Simulation group had a
very good year and the group continues to deliver an outstanding service
to its clients. The group made great strides in its product portfolio
with the initial delivery of the new RCMT demonstration unit to Boeing
and it continued to develop its new stand alone hoist and gunnery
trainers. We are very encouraged by the market reaction to our new
products and are optimistic on our sales opportunities for these
devices. At the same time, we continue to position the Learning Networks
business to be the enterprise grade platform and complete solution
provider for the health and safety compliance markets while expanding
our workforce development products. The further advances we have made in
our proprietary Bluedrop 360 platform and mobile enabled applications
are now even more powerful and our qualified sales pipeline has never
been stronger. Several larger projects are already open for us to
compete at this time and we believe that Learning Networks is well
positioned. Thanks to all for another great year. I am very pleased that
we were able to achieve these results by realizing synergies and
savings, investing heavily in research and development, and growing a
strong sales pipe for our new products. I am confident that our pivot
towards product and proprietary technologies will transform not just
Bluedrop, but our clients and the industries we serve."
About Bluedrop
Bluedrop Performance Learning Inc. (TSX-V: BPLI) is an innovator in
workplace training for individuals, corporations, military personnel and
the public sector. Bluedrop is transforming the workplace globally by
designing, developing and delivering practical, actionable and
affordable training content that improves individual and overall
performance of organizations. For more information, visit www.bluedrop.com.
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All statements,
other than statements of historical fact included in this release,
constitute forward-looking information that involve various risks and
uncertainties. Forward-looking information is based on a number of
factors and assumptions which have been used to develop such information
but which may prove to be incorrect, including, but not limited to,
assumptions in connection with the operational efficiencies associated
with the integration of technological and financial systems and general
economic and market conditions. There can be no assurance that such
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
forward-looking information.
Important factors that could cause actual results to differ
materially from Bluedrop's expectations include general global economic
conditions. For additional information with respect to risk factors
applicable to Bluedrop, reference should be made to Bluedrop's
continuous disclosure materials filed from time to time with securities
regulators, including, but not limited to, Bluedrop's Annual Information
Form and Management's Discussion and Analysis of Results of Operations
and Financial Condition for the year ended September 30, 2017. The
forward-looking information contained in this release is made as of the
date of this release and Bluedrop does not undertake to update publicly
or revise the forward-looking information contained in this release,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180123006612/en/
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