UGE Reports Second Quarter 2020 Financial Results, Settles Debt at a Discount

Toronto, Ontario--(Newsfile Corp. - August 25, 2020) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar energy solutions, reported its financial results for the three months ended June 30, 2020. UGE reports in US dollars. A complete set of June 30, 2020 Consolidated Financial Statements and Management's Discussion & Analysis has been filed at as well as on the Company's website.

Second Quarter 2020 Highlights

  • The Company's project backlog grew from $72 million in Q1 2020 to over $83 million in Q2 2020. When fully deployed, the backlog represents almost $15 million of upfront revenue and over $8 million of annual recurring revenue to the Company for 20+ years.
  • Despite impacts of the COVID-19 pandemic, revenue from UGE's continuing business units grew 140% in the first six months of 2020 compared with the same period in 2019. During the first six months of 2020, revenue from continuing operations was $1.1 million versus $0.5 million in the same period a year ago.
  • Gross margins of 58% were the highest in the Company's history, aided by one-time factors. UGE also continues to benefit from its shift to higher margin business after the discontinuation of the lower margin EPC services business, which should provide gross margins above 23% on a normalized go-forward basis.
  • Temporary cost-saving measures due to the COVID-19 pandemic saw SG&A expenses decrease 29% in Q2 2020 versus Q1 2020. As UGE's business progressively returns to normal post-COVID, and projects continue to come online, management currently expects a gradual return to pre-COVID spending levels by year-end.
  • Net income for the quarter was $(0.3 million) versus $(0.4 million) in Q2 2019 as the Company benefited from higher gross margins and lower sales and marketing expenses. Adjusted EBITDA was $(0.1 million) versus $(0.3 million) in Q2 2019.

Three months ended
June 30,

Six months ended
June 30,


Revenue $494,462
Gross Profit



Net Income (Loss)



Per share



Adjusted EBITDA  


Adjusted EBITDA represents EBITDA adjusted to exclude stock-based compensation, costs associated with one-time transactions or write-downs, impairment losses recognized on long-live assets, and the gain (loss) on sale of assets and investments.

Subsequent to Quarter-End

  • UGE negotiated and received a full release from the lender to its UGE Canada RE business unit. An outstanding debt obligation of approximately $1.2 million was settled for approximately $137,000.
  • An acceleration clause on warrants with strike price of CAD$0.33 was triggered; holders exercised 100% of the warrants prior to the expiration date (August 17, 2020) resulting in gross proceeds of CAD$495,000 (approximately $376,000).

"During the first half of 2020, COVID-19 disrupted the economy, bringing unprecedented delays to our customers, prospects, and some of UGE's business activities," said CEO Nick Blitterswyk. "Such restrictions temporarily slowed UGE's construction activities from March through May, but our sales activities, project development, and contractor discussions were minimally disrupted. Our team's efforts during this difficult time resulted in record business development for UGE, with our backlog increasing over $11 million quarter-over-quarter to $83.3 million as of June 30, 2020. Our business activity is gradually returning to normal, and we're pleased with the progress we're making post quarter-end on increasing deployment of our turnkey solar projects."

UGE Conference Call to Discuss Q2 2020 Financial Results

UGE's CEO Nick Blitterswyk, and CFO Paul Kania will host a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar and submit questions below:

Date: Tuesday, August 25, 2020
Time: 2:00pm EDT

About UGE

UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 400MW of global experience, we work daily to power a more sustainable world. Visit us at


To view the source version of this press release, please visit