Pre-tax income and net income reach record levels coupled with continued strong investment in research and development.
ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–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 Trainer (RCMT) for the Chinook helicopter as part of its ongoing development program with The Boeing 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 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.”
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.
Bluedrop Performance Learning Inc.
Bernie Beckett, 709-739-4938
Chief Financial Officer
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