LAVAL, Quebec, May 22, 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 second quarter ended March 31, 2020. The interim consolidated financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/.
- On February 3rd, 2020, the Company completed a term loan financing of $1.45 million to be used primarily to repay the balance of the US denominated term loan of $1.07 million;
- On February 11, 2020, the Company launched a beta version of its new innovative product, the 3D Pocket WebsiteTM;
- On February 13, 2020, the Company completed the acquisition of Immersolution Inc., a reseller of 3D photographic equipment;
- For its second quarter of 2020 (Q2-20), gross merchant volume (GMV) increased by 9.1% while compared to Q2-19, with an increase of 17% for the months of February and March 2020;
- For Q2-20, the Company generated revenues of $891k compared to $1,226k for Q2-19, a year-over-year decrease of $335k. This decrease is mainly explained by the change of billing method for merchants from gross to net in March 2019 (-$422k), a decrease in revenues from the Tourbuzz platform (-$120k or -15%) partly explained by the economic impacts related to COVID-19, which are partially offset by the new contribution of Immersolution (+$206k) following its acquisition on February 13, 2020;
- For Q2-20, the Company recorded a gross margin (before amortization) of 78.2% compared to 59.7% for Q2-19, an improvement of 18.5 points, mainly explained by the change in the billing method for merchants from gross to net in March 2019;
- For Q2-20, the Company reduced its operating expenses by $92k or 12.9% compared to Q2-19 while the reduction is $601k or 33.8% for the first six months of this fiscal year;
- For Q2-20, EBITDA totaled $78k compared to -$21k for Q2-19, an improvement of $57k as well as an improvement of $312k for the first six months of this fiscal year;
- For Q2-20, operating activities generated cash flows of $96k compared to generated cashflows of $78k for Q2-19, an improvement of $18k;
- As of March 31, 2020, cash totaled $422k compared to $219k as of December 31, 2019 and $178k as of March 31, 2019. As of March 31, 2020, liquidities totaled $662k when including unused lines of credit.
OVERVIEW – IMPACT OF COVID-19
During this second quarter of 2020, the emergence of a new strain of coronavirus (COVID-19) resulted in a major global health crisis which continues to affect the global economy and the financial markets. As a result, the Company has observed a progressive slowdown in the real estate market and progressive decrease in its revenues that has accelerated towards the end of the quarter, caused by the physical distancing restrictions and confinement imposed on its real estate photographers customers in North America. The Company has reacted rapidly to the situation by taking some targeted measures, will continue to assess the situation on a regular basis and take further actions, when necessary, to minimize the impact on the business.
When considering measures taken rapidly to alleviate the effects associated with COVID-19, its encouraging recent financial results, current liquidities and sound financial situation, the Company is confident to be in a position to pursue as planned its business plan and commercialization strategy in the future. Moreover, significant changes observed in customers behavior and needs combined to the Company’ existing and upcoming service offer that customers will benefit, particularly for the fast-growing demand for virtual tours (immersive 3D tours) tend to suggest that the Company could emerge even stronger from this crisis by consolidating its market leader position even more.
SELECTED FINANCIAL INFORMATION
March 31, 2020
March 31, 2019
March 31, 2020
March 31, 2019
|In thousands $||In thousands $||In thousands $||In thousands $|
|Gross Merchant Volume (GMV) *||2,203||2,019||3,795||3,761|
|COGS and direct charges||194||494||225||972|
|Gross margin **
|Other expenses (revenues)||227||(153)||424||(1,250)|
|Net income (loss)||(308)||59||(638)||721|
|Basic net income (loss) per share||(0.00)||0.00||(0.01)||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
” During this second quarter in which we had to navigate through a challenging economic environment related to the COVID-19 global health and economic crisis, we are extremely proud of the results achieved. Although we observed a progressive slowdown in real estate activity throughout the course of the quarter which accelerated in the month of March as a result of the physical distancing restrictions and confinement imposed to real estate photographers in North America, we have, thanks to sustained efforts of our entire team, concluded a historic quarter for Urbanimmersive. From a financial standpoint, we were able to navigate through this challenging environment and still improve several of our financial metrics compared to the same period last year, whether in terms of gross merchant volume, gross margin, EBITDA, cash flows related to operating activities or cash in hand ”, said Ghislain Lemire, President and CEO of Urbanimmersive.
“In this quarter, we have also launched a beta version of our new innovative immersive 3D tours (3D Pocket WebsiteTM) which represent the perfect match between our 3D emulator technology and our Tourbuzz transactional platform which, in the current context of physical distancing, will no longer simply serve as a high added value marketing service but rather become a necessity for many professional photographers. Its cost and time-effective production and post-production processes, its high-quality images and its capacity to be run offline make it a unique product with a major competitive advantage in this market and timing could not have been better to launch it. In addition, with the recent acquisition of Immersolution, a reseller of 3D photographic equipment, we have now positioned ourselves to be able to offer a full set of solutions to our customers while benefiting from additional revenues and cashflows through the crisis. With its versatility and unique features, this new product (3D Pocket WebsiteTM) should diversify our activities in new markets such as the commercial and industrial markets and to accelerate our growth “, said Ghislain Lemire.
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 May 22, 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 May 22, 2020 1.00 p.m. to May 29, 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 3168656.
Urbanimmersive is a SaaS business management solution that provides mission-critical solutions to visual content providers serving the real estate residential, commercial, construction, and local business markets. Urbanimmersive’ platform helps customers to increase operational productivity and 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. The firm’s core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline alternatives to traditional 3D engines for the creation of immersive digital environments. Learn more at urbanimmersive.com.
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
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