Renoworks Announces Record 2018 Second Quarter Financial Results

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Renoworks reports highest quarterly revenues in its history and posts quarter of profitability - design services revenues up 62%

CALGARY, Aug. 23, 2018 /CNW/ - Renoworks Software Inc. (TSXV: RW)("Renoworks" or the "Company"),  the leading visualizer for the home remodeling and construction industry, yesterday announced financial results for the second quarter ended June 30, 2018. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.

Quarterly financial and business highlights:

• Quarterly revenues of $1,048,167 for the three months ended June 30, 2018 compared to $818,951¹ in 2017, up 28%. 
• Design service revenues increased by 62% to $336,703 in the three months ended June 30, 2018, compared to $207,208 for the same period in 2017. 
• 43% of the first quarter's revenue in 2018 is attributable to annual recurring customer contracts.
• Gross margins remained strong at 73%.
• Adjusted EBITDA* for the three months ended June 30, 2018, a profit of $46,460 compared to a loss of $104,104¹ for the same fiscal period in 2017.
• Reduced long-term debt from $122,035 as at June 30, 2017 to $35,158 as at June 30, 2018.
• Expenses for the second quarter of $758,863.  Expenses were consistent with the same period in fiscal 2017.
• Net profit in Q2 was $8,370 versus a loss of $45,726¹ during the same quarter a year ago.
• As at June 30, 2018, the company had 33,662,810 common shares issued and outstanding.

Doug Vickerson, CEO of Renoworks, stated, "I am very pleased to report a strong increase in revenue and return to profitability for the second quarter.  In fact, this was the highest quarterly revenue ever reported by our Company.   This positive performance is a result of the growth-enabling investments we made in 2017 which are starting to bear fruit.  Revenues from our design services business unit continue to grow as we expand our customer base in all areas of our business.  We maintain a positive outlook on our business and the opportunity before us as we continue to gain industry recognition and solidify leadership in the space with our cutting-edge visualization solutions."

Financial results from operations for the second quarter 2018 with comparatives for 2017 are as follows:

	Three Months Ended June 30
	2018	2017
Revenue	$1,048,167	$818,951 ^1
Gross Margin	$770,156	$591,760 ^1
Expenses	$758,863	$742,648
Profit (Loss)	$8,370	($45,726) ^1
Profit (Loss) per share	$0.00	$0.01
Adjusted EBITDA	46,460	(104,104) ^1
Weighted Average Shares Outstanding	33,662,810	33,562,810

Financial results from operations for the year to date 2018 with comparatives for 2017 are as follows:

	Six Months Ended June 30
	2017	2016
Revenue	$1,820,898	$1,521,343 ^1
Gross Margin	$1,287,597	$1,106,184 ^1
Expenses	$1,602,595	$1,379,613
Loss	$303,090	$242,075 ^1
Loss per share	$0.01	$0.01
Adjusted EBITDA	($227,629)	($186,939) ^1
Weighted Average Shares Outstanding	33,662,810	31,636,186
Cash used in operations	$259,795	$545,383

The Company's financial position as of June 30, 2018 with comparatives from 2017 is as follows:

	June 30, 2018	June 30, 2017
Cash Balance	$409,252	$767,999
Accounts Receivable	600,558	762,887
Long- term debt	$35,158	$122,035
Shareholder's Equity	($307,980)	$1,140,957 ^1
Deficit	($7,285,124)	($5,680,572) ^1
Total Assets	$1,152,866	$1,658,857

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyper realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as innovative engagement tools and generates revenues from four main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services and Renoworks SDK (Software Development Kit). For more information, visit: www.renoworks.com  and  www.renoworkspro.com.

*Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR (www.sedar.com).

¹  IFRS 15 transition adjustments

The 2017 financial results have been restated due to the Company's conversion to IFRS 15 effective January 1, 2018. The Company has adopted the standard effective January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be restated.

Forward Looking Information

Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.

on Renoworks please contact: Doug Vickerson, CEO, Phone: [phone], Email: [email protected], Renoworks Software Inc., 2721 Hopewell Place NE, Calgary, Alberta, Canada T1Y 7J7; For investor information for Renoworks please contact: Rob Gamley, Phone: [phone], Email: [email protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC, Canada V7Y 1G5