UGE Reports Second Quarter 2017 Financial Results
Company Posts Highest Quarterly Revenue to Date and Positive Adjusted EBITDA in Milestone Quarter
Toronto, Ontario--(Newsfile Corp. - August 28, 2017) - UGE International Ltd. (TSXV: UGE) (the "Company" or "UGE"), a leader in renewable energy solutions for the commercial and industrial sector, reported its financial results for the three months ended June 30, 2017. UGE reports all amounts in United States dollars.
Second Quarter 2017 Highlights
Revenue for the quarter grew more than 5X to $6.3 million, the highest in UGE's history, while gross margins increased to 19%.
UGE posted positive adjusted EBITDA for the first time, recognizing $12,000 in the second quarter of 2017.
At the end of the quarter, UGE's backlog was $47.9 million, representing confirmed projects the Company expects to build over the next 12-18 months, up $16.3 million from March 31, 2017.
Selected Financial Information
|Three months ended June 30,||Six months ended June 30,|
|Cost of sales||(5,104,972||)||(1,045,632||)||(10,015,867||)||(1,522,135||)|
|Gross profit margin||19%||10%||15%||11%|
|Selling, general and administrative||(1,731,401||)||(1,033,824||)||(2,523,887||)||(1,784,257||)|
|Loss from operating activities||(524,101||)||(919,085||)||(729,388||)||(1,597,764||)|
|Net finance costs||(90,722||)||(5,689||)||(194,083||)||(18,781||)|
|Income tax expense||(45,675||)||(77,273||)||(97,053||)||(68,047||)|
|Net loss from continuing operations||(660,498||)||(1,002,047||)||(1,020,524||)||(1,684,592||)|
|Loss from discontinued operations, net of income tax||-||(455,335||)||-||(1,461,637||)|
|Net loss for the period||$||(660,498||)||$||(1,457,382||)||$||(1,020,524||)||$||(3,146,229||)|
|Adjusted EBITDA margin||0%||-49%||-1%||-62%|
|Loss per share from continuing operations - Basic and diluted||$||(0.02||)||$||(0.04||)||$||(0.03||)||$||(0.07||)|
|Loss per share from net loss - Basic and diluted||$||-||$||(0.06||)||$||-||$||(0.13||)|
Analysis of Financial Results
During the three months ended June 30, 2017, UGE grew revenue 444% over Q2 2016 and reached positive adjusted EBITDA for the first time as the Company continues to grow rapidly. The Company would like to draw attention to the following points from its financial statements:
During the quarter, the Company closed the acquisition of the Carmanah Solar Power Corporation ("CSPC") business, completed a brokered bought deal private placement, and confirmed new projects with several clients including Peterborough Utilities, Elemental Energy, Potentia, Sheridan College, Nature's Spring, and a real estate ownership trust in the northeast United States.
Revenue for the three months ended June 30, 2017 was $6.3 million, compared with $1.2 million in the same period of the prior year from continuing operations, an increase of 444% and the highest in UGE's history for the third quarter in a row.
On June 30, 2017, UGE had backlog of $47.9 million, compared with $31.6 million as of March 31, 2017, based on strong sales results throughout the quarter.
The gross profit margin for the second quarter increased to 19%, compared with 10% in the same period of the year prior, as the Company deployed projects more in line with its short-term goals.
SG&A expenses were $1.7 million for the second quarter, compared with $1.0 million for the same period in the prior year from continuing operations, with the increase mainly due to one-time costs related to the acquisition of the CSPC business of $0.3 million, as well as overhead related to operating the CSPC business of $0.3 million.
"UGE's focused approach to the mid-scale solar sector is resulting in exponential growth and an increasingly strong market leadership position," said UGE's CEO, Nick Blitterswyk. "We remain focused on executing our strategic plan and look forward to sharing additional progress in the second half of the year."
Full financial results and Management's Discussion and Analysis are posted to SEDAR (www.sedar.com) and are available through the Company's website.
UGE delivers immediate savings to businesses through cleaner electricity. We help commercial and industrial clients become more competitive through the low cost of distributed renewable energy. With over 340 MW of experience globally, we work daily to power a more sustainable world.
Visit us at www.ugei.com.
For more information, contact:
Chief Financial Officer
Neither 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.
This press release and the Company's Management Discussion and Analysis for the three and six months ended June 30, 2017 (the "MD&A") contain forward-looking information that involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such assumptions, risks and uncertainties include, without limitation, those associated with, loss of markets, expected sales, future revenue recognition, currency fluctuations, the effect of global and regional economic conditions, industry conditions, changes in laws and regulations, and changes in how they are interpreted and enforced, the lack of qualified personnel or management, fluctuations in foreign exchange or interest rates, demand for the Company's products, and availability of funding. The Company's performance could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if they do so, what benefits the Company will derive there from. The forward-looking information is made as of the date of this press release or the MD&A, as applicable, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Actual events or results could differ materially from the Company's expectations and projections.