Blackline Safety Corp.
TSX VENTURE : BLN

Blackline Safety Corp.

September 29, 2016 09:00 ET

Solid Third Quarter for Blackline Safety

Posts 9th straight quarter of year-on-year double-digit growth

CALGARY, ALBERTA--(Marketwired - Sept. 29, 2016) - Blackline Safety Corp. (TSX VENTURE:BLN) ("Blackline"), a leading manufacturer of lone worker safety monitoring solutions announced results for its third quarter ending July 31, 2016.

Highlights

  • Total revenue of $1.9M, an 11% increase over the prior year's third quarter
  • Service revenue of $1.6M, a 48% increase over the $1.1M in the prior year's third quarter
  • Gross margin of $1.0M, a 39% increase over the prior year's third quarter
  • Ninth quarter in a row of total revenue double-digit growth, quarter over prior year's quarter
  • Closed a non-brokered private placement, raising $6.6M in funding
  • Launched a new generation of Loner Mobile smartphone app for mainstream devices
  • Achieved BS8484 accreditation that enables Blackline to best service the United Kingdom marketplace by allowing initiation of a level 1 emergency response

"Blackline achieved solid growth this quarter despite ongoing challenges in the energy sector and unexpected delays related to the certification of our Loner M6i device, designed specifically for global hazardous locations," said Cody Slater, CEO and Chairman of Blackline Safety. "This quarter, we again reported significant year-on-year service revenue gains as we continue transitioning to a service-based revenue model." He added, "Blackline is preparing for the next phase of growth-this fall, we will change the safety landscape forever, pushing connected safety beyond lone worker monitoring to enable companies to protect every employee on the jobsite." Details will be unveiled at the National Safety Council Congress & Expo in Anaheim, CA from October 17 - 19.

Key Financial Information

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

Third quarter revenue was $1,909 an increase of $185 from $1,724 in the same three month period of the last fiscal year. The 11% increase was driven by the sales of work-alone safety monitoring products through the past year and the resulting recurring service revenue, including Blackline's increasingly popular Loner Complete leasing program.

Gross margin for the quarter was $1,024 compared to $739 in the comparable three month period of the prior year. The gross margin percentage was 54% in the third quarter of fiscal 2016 compared to 43% in same quarter of fiscal 2015-the increase being attributable to the shift in revenue to a more service-based model.

Adjusted EBITDA for the period ended July 31, 2016 was $(148) compared to $(180) for the comparable period in the prior year. The decrease in the adjusted EBITDA in 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 July 31, 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

Quarter Ended July 31 Nine Months Ended July 31
2016 2015 Change 2016 2015 Change
Revenue $ 1,909 $ 1,724 11% $ 5,916 $ 5,015 18%
Gross Margin $ 1,024 $ 739 39% $ 3,021 $ 2,293 32%
Gross Margin percentage 54% 43% 26% 51% 46% 11%
Adjusted EBITDA $ (148) $ (180) 18% $ (638) $ (601) (6)%
Net Loss $ (1,539) $ (1,458) (6)% $ (4,566) $ (2,980) (53)%
Loss per Share $ (0.05) $ (0.06) 17% $ (0.16) $ (0.13) (23)%

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.

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