Renoworks Software Inc.
TSX VENTURE : RW

Renoworks Software Inc.

October 19, 2016 15:24 ET

Renoworks Announces 2016 Third Quarter Financial Results

Renoworks Reports Third Consecutive Quarter of Record Revenues

CALGARY, ALBERTA--(Marketwired - Oct. 19, 2016) -

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Renoworks Software Inc. (TSX VENTURE:RW) ("Renoworks" or the "Company") a leading provider of digital home imaging software and web solutions for new home construction and existing home renovations, today announced financial results for the third quarter ended September 30, 2016.

Financial and business highlights for the third quarter 2016:

  • Third consecutive quarter of record revenues and positive net income for this fiscal quarter.
  • Record revenues of $730,835 for the third quarter 2016 a 21% year-over-year increase.
  • Revenues of $730,835 for the three months ended September 30, 2016 compared to $602,496 in 2015, an increase of 21%.
  • Annual Recurring Revenue of $392,217 for the quarter ending September 30, 2016 increased from $330,000 for the same period in 2015, an increase of 19%.
  • 54% of the third quarter's revenue in 2016 is attributable to annual recurring customer contracts.
  • Net income of $87,697 for the third quarter 2016 compared to a net loss of $12,594 in 2015, and a net loss of $38,107 and $98,450, respectively for the second and first quarter 2016.
  • Gross margins continue to be strong at 77% and 78%, respectively for the third quarter 2016 and the 9 months ended September 2016.
  • In September 2016, the Company partnered with Tilelook, its first Renoworks SDK™ customer for the European market.

Doug Vickerson, CEO of Renoworks, stated, "We are excited with our profitable third quarter of 2016 and the progress we have continued to make throughout 2016 with another record revenue quarter for Renoworks. Mr. Vickerson added, "Our strategic decision to launch our new SaaS (Software-as-a-Service) offering, Renoworks PRO™, for the extensive contractor market is proving very effective to strengthening recurring revenues, gross margins and profitability. Each month, more new contractors are subscribing to our Renoworks PRO™ solution which is helping them to increase their close rates and providing opportunities to upsell. Our focus is to continue to grow our different lines of business through offering best in class solutions."

Financial results from operations for the third quarter 2016 with comparatives for 2015 are as follows:

Three Months Ended September 30
2016 2015
Revenue $730,835 $602,496
Gross Margin $560,063 $474,962
Expenses $465,956 $478,093
Income (loss) $87,697 ($12,594)
Earnings (loss) per share $0.003 ($0.001)
Weighted Average Shares Outstanding 29,332,185 28,002,994

Financial results from operations for the year to date 2016 with comparatives for 2015 are as follows:

Nine Months Ended September 30
2016 2015
Revenue $2,055,983 $1,676,070
Gross Margin $1,594,116 $1,297,895
Expenses $1,573,976 $1,349,975
Loss $48,862 $28,639
Loss per share $0.002 $0.001
Weighted Average Shares Outstanding 28,842,428 27,019,783
Cash used in operations $109,085 $116,805

The Company's financial position as of September 30, 2016 with comparatives from 2015 is as follows:


September 30, 2016

September 30, 2015
Cash Balance $389,085 $726,735
Accounts Receivable 575,611 341,963
Working Capital $362,133 $698,071
Deferred Revenue 481,640 255,198
Long- term liabilities $183,885 $259,484
Shareholder's Equity $229,024 $473,958
Deficit ($5,367,611) ($4,986,913)
Total Assets $1,074,937 $1,122,786

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software for the remodelling and new home construction industry, primarily in the United States and Canada. Delivered online, as a custom developed app or desktop software, Renoworks provides its technology to manufacturers, contractors, builders and retailers offering the solution to one of the home remodelling industry's greatest challenges: enabling customers to see how their product choices will look in a realistic, virtual environment - even in their own home - before they make a purchase decision. Renoworks markets its software as a cost-effective lead generation tool and generates revenues from three main business lines: enterprise, Renoworks PRO™, and its Software Development Kit (SDK). For more information, visit www.renoworks.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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's estimates or opinions change.

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