Blackline Safety Corp.
TSX VENTURE : BLN

Blackline Safety Corp.

June 29, 2016 17:57 ET

Blackline Safety Reports Record Second Quarter Revenue

Posts 8th Straight Quarter of Year on Year Double Digit Growth

CALGARY, ALBERTA--(Marketwired - June 29, 2016) - Blackline Safety Corp. (TSX VENTURE:BLN) ("BLACKLINE" OR "COMPANY"), A LEADING MANUFACTURER OF LONE WORKER SAFETY MONITORING solutions today announced results for its second quarter ending April 30, 2016.

Highlights

  • Total revenue of $1.9M, a 22% increase over the prior year's second quarter
  • Service revenue of $1.5M, a 54% increase over the $0.9M in the prior year's second quarter
  • Gross margin of $1.0M, a 36% increase over the prior year's second quarter
  • Launched Loner M6 globally, bringing industrial-grade two-way speakerphone capability to a broad range of industries and applications
  • Began the international certification process for Loner M6i and the Company's indoor location beacon, for use within hazardous environments with risk of an explosive atmosphere
  • Eighth quarter in a row of double-digit growth, quarter over prior year's quarter

"Customers are increasingly seeing the value in Blackline's Loner Complete operating lease service model, easing the deployment of monitoring technology without an upfront capital cost," said Cody Slater, CEO and Chairman of Blackline Safety. "Service revenue, including Loner Complete sales, is the main driver for our growth going forward. We see that continuing as we expand our delivery of leading safety monitoring solutions to nearly every industry, protecting workers wherever they need to be to get their job done. We continue to innovate -- our recently-announced evacuation capability for sites and facilities will help Blackline deliver more value to customers while increasing the opportunity for higher unit sales per client."

Key Financial Information

Second quarter revenue was $1,944, an increase of $354 from $1,590 in the same three month period of the last fiscal year. The 22% increase was driven by the sales of work-alone safety monitoring products through the past year and their recurring service revenue, including Blackline's increasingly popular Loner Complete leasing program.

Gross margin for the quarter was $996 compared to $733 in the comparable three month period of the prior year. The gross margin percentage was 51% in the second quarter of fiscal 2016 compared to 46% in same quarter of fiscal 2015-the increase being attributable to service margin improvement.

Adjusted EBITDA for period ended April 30, 2016 was $(363) compared to $(357) for the comparable period in the prior year. The decrease in the adjusted EBITDA during the period was a result of increased wages and benefits due to the additional staff required to support sales growth, offset by the increased sales revenue generated in the period.

Blackline's unaudited condensed consolidated interim financial statements and management's discussion and analysis on financial condition and results of operations for the quarter ended April 30, 2016 are available at www.sedar.com. All results are reported in Canadian dollars. To learn more about Blackline Safety, visit www.blacklinesafety.com and follow Blackline on Twitter @blacklinesafety.

Financial Highlights
Values in this release are in thousands, except for percentages and per share data.

Quarter Ended April 30 Six Months Ended April 30
2016 2015 Change 2016 2015 Change
Revenue $ 1,944 $ 1,590 22 % $ 4,007 $ 3,291 22 %
Gross Margin $ 996 $ 733 36 % $ 1,997 $ 1,554 29 %
Gross Margin percentage 51 % 46 % 11 % 50 % 47 % 6 %
Adjusted EBITDA $ (363 ) $ (357 ) (2 )% $ (514 ) $ (421 ) (22 )%
Net Loss $ (1,688 ) $ (699 ) (141 )% $ (3,027 ) $ (1,521 ) (99 )%
Loss per Share $ (0.07 ) $ (0.03 ) (133 )% $ (0.12 ) $ (0.07 ) (71 )%

About Blackline: Blackline Safety Corp. (TSX VENTURE:BLN) is a wireless location leader that develops, manufactures, and markets products and services for lone worker safety monitoring. Targeting every industry, employee role and location, our Loner® solutions are promoted through offices in Canada, the United States and the United Kingdom, and sold through a growing network of international distributors. Loner products alert monitoring personnel of a safety incident, locate the employee and empower the most efficient emergency response -- Alert. Locate. Respond™. Our vision is to become the leading supplier of wirelessly connected lone worker safety monitoring products in the world. For more information, visit www.BlacklineSafety.com.

Neither 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.

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