LAVAL, Quebec, Feb. 28, 2020 (GLOBE NEWSWIRE) — Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSX VENTURE: UI) (OTC PINK: UBMRF) today announced select financial results and presents business highlights for the first quarter of 2020 ended December 31, 2019. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/.
- For Q1-20, the Company generated revenues of $601k compared to $1,260k for Q1-19, a year-over-year decrease of $659k. This decrease is mainly explained by the change of billing method for merchants from gross to net in March 2019 (-$521k) and a reduction in marketing expenses in preparation for the launch of new products such as the recently announced 3D Pocket WebsitesTM;
- For Q1-20, the Company recorded a gross margin (before amortization) of 94.8% compared to 62.1% for Q1-19, an improvement of 32.7 points mainly explained by the change in the billing method for merchants from gross to net;
- For Q1-20, EBITDA totaled $14k compared to -$263k for Q1-19, an increase of $277k;
- For Q1-20, operating activities required cash flows of $82k compared to required cashflows of $470k for Q1-19, an improvement of $388k;
SELECTED FINANCIAL INFORMATION
Dec. 31, 2019
Dec. 31, 2018
|In thousands $||In thousands $|
|Gross Merchant Volume (GMV) *||1,589||1,739|
|Revenues **||601||1 260|
|Gross margin ** (before amortization)||570||789|
|Other expenses (revenues)||197||(1,090)|
|Net income (loss)||(330)||621|
|Basic net income (loss) per share||(0.00)||0.01|
* GMV represents the value of all transactions performed by merchants using Urbanimmersive’s business solutions for invoicing and/or collecting payments for their services
** Change from gross to net billing method for merchants in March 2019
*** Exclude Tourbuzz acquisition costs of $13k for the 3-month period ended December 31, 2018.
“During the first quarter of 2020, Urbanimmersive made significant progress on many projects, particularly on the finalization of its new innovative and in demand products such as the recently announced 3D Pocket WebsitesTM, the refocus of its marketing plan, bank refinancing as well as contemplated acquisitions which led to the recent strategic acquisition of Immersolution.
Whether it is in terms of operational margin, EBITDA or cash flows, our quarterly financial results for the low season confirm again the success of the integration of Tourbuzz compared to last year. From now on, we can devote all our efforts to the growth of our activities, particularly to the commercialization of our new products”, said Ghislain Lemire, President and CEO of Urbanimmersive.
The Company has also issued 1,046,000 shares at a price of $0.05 to Officers as compensation and subject to a 4-month hold period from the date of issuance.
TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.
Investor Conference Call
UI will be hosting a conference call to discuss 2020 first quarter financial results and answer questions at 1.00 p.m. (ET) on February 28, 2020. To participate in the conference call, please dial toll free number (877) 620-1735 or international number (470) 414-9786 five to 10 minutes before the call is scheduled to begin. A replay will be available for 7 days from February 28, 2020 1.00 p.m. to March 6, 2020 1.00 p.m. The number to hear the conference replay are (855) 859-2056 or (404) 537-3406. Conference ID for the conference call and the replay is 4766947.
Urbanimmersive is a leading SaaS business management solution providing mission critical solutions to visual content providers serving the real estate residential, commercial, construction and local businesses markets. The Urbanimmersive platform helps customers increase their operational productivity while helping in delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems and interactive visual technology solutions. Urbanimmersive’s core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline cost-effective alternatives to traditional 3D engines for the creation of immersive digital environments. The 3D emulator enables to quickly create immersive environments of small existing and future spaces like houses to extremely large environments like stadiums, to which clients can interpolate multiple layers of interactive and contextualized set of data for many purposes such as for online marketing, building asset management and offsite training and inspection. The Company offers its advance features on a pay-per-use transactional business model and licenses its immersive technology in other market segments.
Caution of Forward-Looking Statements
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 estimates or opinions change.
For more information, please contact:
Simon Bédard, CA, CPA, CFA, MBA
Chief Financial Officer
514 394-7820 X 224