- Increased Subscription Services revenue by 28% in Fiscal 2020
- Generated positive Adjusted EBITDA for both Q4 2020 and Fiscal 2020
- Grew Order Bookings backlog 29%
- Company to host conference call today at
8:30 a.m. EST
Q4 and Fiscal 2020 Financial Highlights:
- Revenue was
$5.8 million , up 55% compared to$3.8 million in Q4 Fiscal 2019; Fiscal 2020 revenue was$19.1 million , up 26% compared to$15.2 million in Fiscal 2019 - Subscription Services1 revenue was
$4.7 million , up 37% compared to$3.5 million in Q4 Fiscal 2019; Fiscal 2020 Subscription Services revenue was$16.9 million , up 28% compared to$13.2 million in Fiscal 2019 - New Order Bookings were
$3.8 million compared to$1.5 million in Q4 Fiscal 2019; Fiscal 2020 new Order Bookings were$24.5 million compared to$13.5 million in Fiscal 2019 - Order Bookings backlog at the end of Fiscal 2020 was
$28.8 million compared to$22.4 million at the end of Fiscal 2019 - Adjusted EBITDA2 was
$811 thousand compared to($1.9) million in Q4 Fiscal 2019; Fiscal 2020 Adjusted EBITDA was$382 thousand compared to($6.1) million in Fiscal 2019 - Cash from operations was
$865 thousand compared to($4.8) million in Q4 Fiscal 2019; Fiscal 2020 cash used in operations was($2.2) million compared to($6.3) million in Fiscal 2019 - Cash, cash equivalents and short-term investments were
$7.5 million at the end of Fiscal 2020 compared to$6.8 million at the end of Q3 Fiscal 2020 and$10.2 million at the end of Fiscal 2019
Q4 and Fiscal 2020 Operational Highlights
- Announced updated terms to satellite AIS business agreement with L3Harris Technologies
- Expanded its alliance agreement with an existing channel partner that will generate incremental revenue of
$2.0 million per year above the prior agreement level - Signed new satellite-AIS data service contracts with the
Government of Canada , theEuropean Maritime Safety Agency (EMSA) and theIndian Navy , among others - Completed the strategic divestiture of select first-generation satellite assets to
Myriota PTY Ltd. - Announced the launch of the ESAIL microsatellite which joins exactEarth's global constellation of more than 60 high-performance AIS satellites
- Joined the Mayflower Autonomous Ship mission, which is an international effort to build an unmanned, fully autonomous transatlantic research vessel
"Fiscal 2020 was a very successful year both operationally and financially, which we believe reflects the essential nature of our service and the resilience of our team," said
"Subscription Services revenue in Q4 was
Q4 and Fiscal 2020 Financial Review
Total revenue in the three-month period ended
Revenue rose primarily due to the increase in Subscription Services revenue, which was
Total revenue and Subscription Services revenue growth for Q4 2020 and Fiscal 2020 was driven primarily by customer growth in the commercial market segment. Revenue from commercial customers for Q4 2020 and Fiscal 2020 was
Data Products revenue and Other Products & Services revenue combined in Q4 2020 was
Order Bookings for Q4 2020 were
Gross margin for Q4 2020 was 51% compared to zero gross margin in Q4 2019. Gross margin for Fiscal 2020 was 43% compared to 14% in Fiscal 2020. Gross margin improved in both periods year-over-year due to revenue growth and a lower cost of revenue. Cost of revenue decreased in Fiscal 2020 due primarily to the absence of revenue-share payments to L3Harris resulting from the amended satellite-AIS agreement and
Selling, general and administrative ("SG&A") expense for Q4 2020 was
Product development and research and development ("R&D") expense for Q4 2020 was
Adjusted EBITDA1 for Q4 2020 was
Three months ended Oct 31 | Year ended Oct 31 | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Net loss | $ | (679) | $ | (2,216) | $ | (5,111) | $ | (8,483) | |
Interest income | (15) | (70) | (82) | (224) | |||||
Interest expense | 477 | 417 | 1,798 | 1,407 | |||||
Income tax expense | 29 | 5 | 148 | 121 | |||||
Depreciation and amortization | 178 | 194 | 847 | 759 | |||||
Unrealized foreign exchange (gain) loss | 134 | (202) | (306) | (59) | |||||
Share-based compensation | 541 | 20 | 1,417 | 419 | |||||
COVID-19 allowance for doubtful accounts | 88 | - | 338 | - | |||||
Loss on disposal and impairment | 58 | - | 883 | - | |||||
Share of equity investment loss | - | - | 450 | - | |||||
Adjusted EBITDA | $ | 811 | $ | (1,852) | $ | 382 | $ | (6,060) |
Net loss for Q4 2020 was ($679) thousand, or (
Cash generated from operations for Q4 2020 was
As at
Q4 and Fiscal 2020 Conference Call
exactEarth will hold a conference call today at
CONFERENCE ID: 7377204
DATE:
TIME:
DIAL-IN NUMBER: 1-888-231-8191 or 647-427-7450
WEBCAST LINK: https://produceredition.webcasts.com/starthere.jsp?ei=1410978&tp_key=430456b502
TAPED REPLAY: 1-855-859-2056 or 416-849-0833
REPLAY CODE: 7377204
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.
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, our ability to continue as a going concern, 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. | |||||
Consolidated Statements of Financial Position | |||||
(in thousands of Canadian dollars) | |||||
As at | As at | ||||
2020 | 2019 | ||||
$ | $ | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 7,423 | 10,188 | |||
Short-term investments | 29 | 49 | |||
Accounts receivable | 3,215 | 3,073 | |||
Unbilled revenue | 1,698 | 1,151 | |||
Prepaid expenses | 392 | 448 | |||
Other current assets | 359 | 209 | |||
Total current assets | 13,116 | 15,118 | |||
Property, plant and equipment | 5,272 | 4,398 | |||
Intangible assets | 1,286 | 1,538 | |||
Other long-term assets | 566 | 366 | |||
Total assets | 20,240 | 21,420 | |||
LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIENCY) | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 6,402 | 4,840 | |||
Deferred revenue | 2,548 | 2,501 | |||
Loans payable - current | - | 202 | |||
Total current liabilities | 8,950 | 7,543 | |||
Loans payable | 11,131 | 10,089 | |||
Long-term incentive plan liability | 1,124 | 203 | |||
Other long-term liabilities | 1,660 | 1,466 | |||
Total liabilities | 22,865 | 19,301 | |||
Shareholders' equity (deficiency) | |||||
Share capital | 123,923 | 123,823 | |||
Contributed surplus | 4,956 | 4,647 | |||
Accumulated other comprehensive loss | (155) | (113) | |||
Deficit | (131,349) | (126,238) | |||
Total shareholders' equity (deficiency) | (2,625) | 2,119 | |||
Total liabilities and shareholders' equity | 20,240 | 21,420 |
exactEarth™ Ltd. | ||||||||||
Consolidated Statements of Changes in Shareholders' Equity (Deficiency) | ||||||||||
(in thousands of Canadian dollars) | ||||||||||
For the year ended | Total | Deficit | Accumulated | Share | Contributed | |||||
$ | $ | $ | $ | $ | ||||||
Balance at | 2,119 | (126,238) | (113) | 123,823 | 4,647 | |||||
Stock-based compensation expense | 167 | - | - | - | 167 | |||||
Restricted share unit expense | 242 | - | - | - | 242 | |||||
Issuance of common shares | - | - | - | 100 | (100) | |||||
Comprehensive loss | (5,153) | (5,111) | (42) | - | - | |||||
Balance at | (2,625) | (131,349) | (155) | 123,923 | 4,956 | |||||
For the year ended | ||||||||||
Balance at | 7,207 | (118,027) | (11) | 123,794 | 1,451 | |||||
Impact of change in accounting policy | 272 | 272 | - | - | - | |||||
Adjusted balance at | 7,479 | (117,755) | (11) | 123,794 | 1,451 | |||||
Stock-based compensation expense | 96 | - | - | - | 96 | |||||
Restricted share unit expense | 212 | - | - | - | 212 | |||||
Convertible debenture | 2,917 | - | - | - | 2,917 | |||||
Issuance of common shares | - | - | - | 29 | (29) | |||||
Comprehensive loss | (8,585) | (8,483) | (102) | - | - | |||||
Balance at | 2,119 | (126,238) | (113) | 123,823 | 4,647 |
exactEarth™ Ltd. | ||||||||||
Consolidated Statements of Loss and Comprehensive Loss | ||||||||||
(in thousands of Canadian dollars except for per share figures) | ||||||||||
Three months ended | Year ended | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||
$ | $ | $ | $ | |||||||
Revenue | 5,806 | 3,758 | 19,135 | 15,197 | ||||||
Cost of revenue | 2,854 | 3,767 | 10,902 | 13,019 | ||||||
Gross profit | 2,952 | (9) | 8,233 | 2,178 | ||||||
Selling, general and administrative | 2,621 | 1,792 | 8,578 | 7,709 | ||||||
Product development and research | 267 | 40 | 895 | 840 | ||||||
Depreciation and amortization | 178 | 194 | 847 | 759 | ||||||
Loss on disposal and impairment | 58 | - | 883 | - | ||||||
Loss from operations | (172) | (2,035) | (2,970) | (7,130) | ||||||
Other expenses | ||||||||||
Foreign exchange (gain) loss | 16 | (171) | (173) | 49 | ||||||
Share of equity investment loss | - | - | 450 | - | ||||||
Interest income | (15) | (70) | (82) | (224) | ||||||
Interest expense | 477 | 417 | 1,798 | 1,407 | ||||||
Total other expenses | 478 | 176 | 1,993 | 1,232 | ||||||
Income tax expense | 29 | 5 | 148 | 121 | ||||||
Net loss | (679) | (2,216) | (5,111) | (8,483) | ||||||
Other comprehensive loss | ||||||||||
Item that may be subsequently reclassified to net loss: | ||||||||||
Foreign currency translation, net of income tax expense of nil | 75 | (175) | (42) | (102) | ||||||
Total other comprehensive loss | 75 | (175) | (42) | (102) | ||||||
Comprehensive loss | (604) | (2,391) | (5,153) | (8,585) | ||||||
Loss per share | ||||||||||
Basic and diluted loss per share | (0.03) | (0.10) | (0.23) | (0.39) |
exactEarth™ Ltd. | |||||||||
Consolidated Statements of Cash Flows | |||||||||
(in thousands of Canadian dollars) | |||||||||
unaudited | |||||||||
Three months ended | Year ended | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
$ | $ | $ | $ | ||||||
Net loss | (679) | (2,216) | (5,111) | (8,483) | |||||
Add (deduct) items not involving cash | |||||||||
Non-cash interest | 165 | 115 | 565 | 354 | |||||
Depreciation and amortization | 178 | 194 | 847 | 759 | |||||
Loss on disposal and impairment | 58 | - | 883 | - | |||||
Share of equity investment loss | - | - | 450 | - | |||||
Operating grant recognized on SIF loan | (107) | (227) | (705) | (1,363) | |||||
Long-term incentive plan expense | 491 | 86 | 1,250 | 323 | |||||
Stock-based compensation | 50 | (67) | 167 | 96 | |||||
Net change in non-cash working capital balances | 709 | (2,637) | (498) | 2,046 | |||||
Other operating cash flows | - | - | |||||||
Technology demonstration program funding received | - | - | - | 26 | |||||
Settlement of share units | - | - | - | (63) | |||||
Cash flows from (used in) operations | 865 | (4,752) | (2,152) | (6,305) | |||||
Investing activities | |||||||||
Acquisition of property, plant and equipment | (119) | (104) | (1,905) | (1,190) | |||||
Reimbursement of acquisition costs of property, plant and equipment | - | 59 | 331 | 347 | |||||
Net change in non-cash working capital related | - | - | (450) | - | |||||
Acquisition of intangible assets | - | - | - | (10) | |||||
Cash flows used in investing activities | (119) | (45) | (2,024) | (853) | |||||
Financing activities | |||||||||
Government loan repayment | - | (124) | (205) | (452) | |||||
Government loan advance | - | 341 | 1,647 | 1,222 | |||||
Payment of principal portion of lease obligations | (37) | - | (147) | - | |||||
Convertible debenture advance | - | - | - | 13,000 | |||||
Convertible debenture issue costs | - | - | - | (1,146) | |||||
Cash flows from (used in) financing activities | (37) | 217 | 1,295 | 12,624 | |||||
Effect of exchange rate changes on cash | (27) | 74 | 116 | (52) | |||||
- | |||||||||
Net increase (decrease) in cash | 682 | (4,506) | (2,765) | 5,414 | |||||
Cash, beginning of the period | 6,741 | 14,694 | 10,188 | 4,774 | |||||
Cash, end of the period | 7,423 | 10,188 | 7,423 | 10,188 | |||||
Supplemental cash flow information | |||||||||
Interest Paid | 2 | - | 403 | 195 | |||||
Interest received | 1 | 61 | 33 | 185 | |||||
Income taxes paid | 29 | 5 | 148 | 121 |
SOURCE exactEarth Ltd.
© Canada Newswire, source