- Increased total revenue by 30%
- Increased Subscription Services revenue by 27%
- Generated positive Adjusted EBITDA of
$0.9 million - Completed the conversion of all convertible debentures subsequent to quarter-end
Q1 Fiscal 2021 Highlights:
- Revenue was
$5.4 million , up 30% compared to$4.1 million in Q1 2020. - Subscription Services1 revenue was
$4.9 million , up 27% compared to Q1 2020. - New Order Bookings were
$4.3 million compared to$7.1 million in Q1 2020. - Order Bookings backlog at the end of Q1 2021 was
$26.7 million compared to$25.6 million at the end of Q1 2020. - Adjusted EBITDA2 was
$900 thousand compared to$250 thousand in Q1 2020. - Cash from operations was
$771 thousand compared to cash used in operations of$1.8 million in Q1 2020. - Cash, cash equivalents and short-term investments were
$8.0 million at the end of Q1 2021 compared to$7.4 million at the end of Fiscal 2020. - Announced redemption of 2023 convertible unsecured subordinated debentures, which was completed subsequent to quarter-end.
"Q1 saw the continuation of the positive momentum we generated during 2020," said
Subsequent Event – Convertible Debentures Converted to Equity
On
"The conversion of the debentures simplifies our capital structure, improves the leverage of the Company and eliminates the interest expense," said
Q1 Fiscal 2021 Financial Review
Total revenue in the three-month period ended
Subscription Services revenue was
Total revenue and Subscription Services revenue growth for Q1 2021 was driven primarily by customer growth in the commercial market segment. Revenue from commercial customers for Q1 2021 was
Order Bookings backlog at
Gross margin for Q1 2021 was 52% compared to 50% in Q1 2020. Gross margin improved year-over-year primarily due to revenue growth. Cost of revenue was
Selling, general and administrative ("SG&A") expense for Q1 2021 was
Product development and research and development ("R&D") expense for Q1 2021 was
Adjusted EBITDA1 for Q1 2021 was
Three months ended Jan 31 | ||||
2021 | 2020 | |||
Net income (loss) | $ | (1,334) | $ | (613) |
Interest income | (14) | (34) | ||
Interest expense | 497 | 426 | ||
Income tax expense | 58 | 74 | ||
Depreciation and amortization | 178 | 254 | ||
Unrealized foreign exchange loss (gain) | 442 | (167) | ||
Long-term incentive plan expense | 1,045 | 310 | ||
Change in COVID-19 allowance for doubtful | 28 | - | ||
Adjusted EBITDA | $ | 900 | $ | 250 |
Net loss for Q1 2021 was ($1.3) million, or (
Cash generated from operations for Q1 2021 was
As of
Q1 2021 Conference Call
exactEarth will hold a conference call today at
CONFERENCE ID: 5457858
DATE:
TIME:
DIAL-IN NUMBER: 1-888-231-8191 or 647-427-7450
WEBCAST LINK: https://produceredition.webcasts.com/starthere.jsp?ei=1425880&tp_key=cd7df8d73a
TAPED REPLAY: 1-855-859-2056 or 416-849-0833
REPLAY CODE: 5457858
The taped replay will be available for seven days and the archived webcast will be available for 90 days.
A link to the live audio webcast of the conference call will also be available on the events page of the investors section of exactEarth website at www.exactearth.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to hear the webcast.
1,2Non-IFRS Measures
We measure Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization ("EBITDA"), plus unrealized foreign exchange losses, share-based compensation costs, impairment losses, share of equity investment loss and COVID-19 related allowances for doubtful accounts, less interest income and unrealized foreign exchange gains. We believe that Adjusted EBITDA provides useful supplemental information as it provides an indication of the income generated by our main business activities before taking into consideration how they are financed or taxed and exclude the impact of items that are considered by management to be outside of the Company's ongoing operating results. Adjusted EBITDA should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indicator of our performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows.
The Company defines "Order Bookings" as the dollar sum of contracts for the supply of products and services to its customers. "Order Bookings backlog" is the dollar sum of revenue that is expected to be recognized derived from customer contracts. Order Bookings and Order Bookings backlog are indicative of firm future revenue streams; however, they do not provide a guarantee of future net income and provide no information about the timing of future revenue.
We define Subscription Revenue as the dollar sum of fully executed contracts for our products and/or services to our customers that are subscription-based, typically sold with a one-year period of service and recognized in our "Subscription Services" segmented revenue.
About exactEarth Ltd.
exactEarth is a leading provider of global maritime vessel data for ship tracking and maritime situational awareness solutions. Since its formation in 2009, exactEarth has pioneered a powerful new method of maritime surveillance called Satellite AIS and has delivered to its clients a view of maritime behaviours across all regions of the world's oceans unrestricted by terrestrial limitations. exactEarth's second-generation constellation, exactView RT, securely relays satellite-detected AIS vessel signals from any location on the earth's surface to the ground in seconds – thus enabling global real-time vessel tracking. This unique capability consists of 58 advanced satellite payloads designed and built by L3Harris Technologies, Inc. under agreement with exactEarth and that are hosted onboard the Iridium NEXT constellation of satellites. www.exactearth.com
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements may include financial and other projections, as well as statements regarding exactEarth's future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, including statements regarding, among other things, expectations of our exactView RT offering relative to competitors, financial impact of the Myriota transaction, expectations of the exactView RT capabilities driving growth, growth opportunities for the Company in the maritime information services market and the cost and revenue share in connection with the L3Harris Agreement. exactEarth uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by exactEarth in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors exactEarth believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to exactEarth's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause exactEarth's actual results, historical financial statements, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of exactEarth's customers; the competition exactEarth faces in its industry and/or marketplace; the further delayed launch of satellites, the anticipated benefits of the A&R SABA; the financial impact of the Myriota transaction; the impact of the COVID-19 pandemic on customers and the market generally, the reduced scope of significant existing contracts; and the possibility of technical, logistical or planning issues in connection with the deployment of exactEarth's products or services.
exactEarth™ Ltd. | |||||
Interim Condensed Consolidated Statements of Financial Position | |||||
(in thousands of Canadian dollars) | |||||
(unaudited) | |||||
As at | As at | ||||
2021 | 2020 | ||||
$ | $ | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 7,952 | 7,423 | |||
Short-term investments | - | 29 | |||
Accounts receivable | 3,040 | 3,215 | |||
Unbilled revenue | 1,930 | 1,698 | |||
Prepaid expenses | 440 | 392 | |||
Other current assets | 418 | 359 | |||
Total current assets | 13,780 | 13,116 | |||
Property, plant and equipment | 5,216 | 5,272 | |||
Intangible assets | 1,238 | 1,286 | |||
Other long-term assets | 486 | 566 | |||
Total assets | 20,720 | 20,240 | |||
LIABILITIES & SHAREHOLDERS' DEFICIENCY | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 5,981 | 6,402 | |||
Deferred revenue | 3,353 | 2,548 | |||
Loans payable - current | 11,560 | - | |||
Total current liabilities | 20,894 | 8,950 | |||
Loans payable | 1,571 | 11,131 | |||
Long-term incentive plan liability | 2,067 | 1,124 | |||
Other long-term liabilities | 108 | 1,660 | |||
Total liabilities | 24,640 | 22,865 | |||
Shareholders' deficiency | |||||
Share capital | 123,923 | 123,923 | |||
Contributed surplus | 5,058 | 4,956 | |||
Accumulated other comprehensive loss | (218) | (155) | |||
Deficit | (132,683) | (131,349) | |||
Total shareholders' deficiency | (3,920) | (2,625) | |||
Total liabilities and shareholders' deficiency | 20,720 | 20,240 |
exactEarth™ Ltd. | ||||||||||||
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Deficiency) | ||||||||||||
(in thousands of Canadian dollars) | ||||||||||||
(unaudited) | ||||||||||||
For the three months ended | Total | Deficit | Accumulated | Share | Contributed | |||||||
$ | $ | $ | $ | $ | ||||||||
Balance at | (2,625) | (131,349) | (155) | 123,923 | 4,956 | |||||||
Stock-based compensation expense | 45 | - | - | - | 45 | |||||||
Restricted share unit expense | 57 | - | - | - | 57 | |||||||
Comprehensive loss | (1,397) | (1,334) | (63) | - | - | |||||||
Balance at | (3,920) | (132,683) | (218) | 123,923 | 5,058 | |||||||
For the three months ended | ||||||||||||
$ | $ | $ | $ | $ | ||||||||
Balance at | 2,119 | (126,238) | (113) | 123,823 | 4,647 | |||||||
Stock-based compensation expense | 42 | - | - | - | 42 | |||||||
Restricted share unit expense | 90 | - | - | - | 90 | |||||||
Comprehensive loss | (675) | (613) | (62) | - | - | |||||||
Balance at | 1,576 | (126,851) | (175) | 123,823 | 4,779 | |||||||
exactEarth™ Ltd. | |||||||
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss | |||||||
(in thousands of Canadian dollars except for per share figures) | |||||||
(unaudited) | |||||||
Three months ended | |||||||
2021 | 2020 | ||||||
$ | $ | ||||||
Revenue | 5,364 | 4,133 | |||||
Cost of revenue | 2,583 | 2,059 | |||||
Gross profit | 2,781 | 2,074 | |||||
Selling, general and administrative | 2,799 | 1,780 | |||||
Product development and research | 191 | 304 | |||||
Depreciation and amortization | 178 | 254 | |||||
Loss from operations | (387) | (264) | |||||
Other expenses | |||||||
Other expense | 9 | - | |||||
Foreign exchange loss (gain) | 397 | (117) | |||||
Interest income | (14) | (34) | |||||
Interest expense | 497 | 426 | |||||
Total other expenses | 889 | 275 | |||||
Income tax expense | 58 | 74 | |||||
Net loss | (1,334) | (613) | |||||
Other comprehensive loss | |||||||
Item that may be subsequently reclassified to net loss: | |||||||
Foreign currency translation, net of income tax expense of nil | (63) | (62) | |||||
Total other comprehensive loss | (63) | (62) | |||||
Comprehensive loss | (1,397) | (675) | |||||
Loss per share | |||||||
Basic and diluted loss per share | (0.06) | (0.03) |
exactEarth™ Ltd. | |||||
Interim Condensed Consolidated Statements of Cash Flows | |||||
(in thousands of Canadian dollars) | |||||
(unaudited) | |||||
Three months ended | |||||
2021 | 2020 | ||||
$ | $ | ||||
Operating activities | |||||
Net loss | (1,334) | (613) | |||
Add (deduct) items not involving cash | |||||
Non-cash interest | 279 | 118 | |||
Depreciation and amortization | 178 | 254 | |||
Operating grant recognized on SIF loan | (148) | (209) | |||
Long-term incentive plan expense | 1,045 | 309 | |||
Net change in non-cash balances | 751 | (1,674) | |||
Cash flows from (used in) operating activities | 771 | (1,815) | |||
Investing activities | |||||
Acquisition of property, plant and equipment | (541) | (378) | |||
Cash flows used in investing activities | (541) | (378) | |||
Financing activities | |||||
Government loan repayment | - | (123) | |||
Government loan advance | 430 | 833 | |||
Payment of principal portion of lease obligations | (33) | - | |||
Cash flows from financing activities | 397 | 673 | |||
Effect of exchange rate changes on cash | (98) | 4 | |||
Net increase (decrease) in cash | 529 | (1,516) | |||
Cash, beginning of the period | 7,423 | 10,188 | |||
Cash, end of the period | 7,952 | 8,672 | |||
Supplemental cash flow information | |||||
Interest paid | 197 | 199 | |||
Interest received | - | 24 | |||
Income taxes paid | 58 | 74 |
SOURCE exactEarth Ltd.
© Canada Newswire, source