Urbanimmersive Announces Its 2020 Third Quarter Financial Results
SAINT-HUBERT, Quebec, Aug. 26, 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 third quarter ended June 30, 2020. The interim condensed consolidated financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at .
Highlights
- For Q3-20, the Company generated revenues of $1,661k compared to $1,104k for Q3-19, a year-over-year increase of $557k or 50.5%, explained by the sales of 3D photography equipment (+$901k) following the acquisition of Immersolution on February 13, 2020 and partly offset by a temporary decrease in software (‘SaaS’) revenues (-$344k or -31%) mainly explained by the significant slowdown in real estate activities created by the social distancing requirements of the COVID-19 crisis;
- For the first 9 months of this fiscal year, revenues total $3,153k compared to $3,632k for the first 9 months of last year, a decrease of $479k. While adjusting for comparison purposes last year revenues to reflect the change in billing method for Urbanimmersive in March 2019 from gross to net, adjusted revenues for the first 9 months of last year total $2,705k, an increase of $448k or 17% for the first 9 months;
- For Q3-20, the Company recorded a gross margin (before amortization) of $944k (56.8%) compared to $1,048k (94.9%) for Q3-19, a decrease of $104k (-9.9%);
- For Q3-20, EBITDA totaled $352k compared to $522k for Q3-19 (-$170k) and $444k for the first 9 months of this fiscal year while compared to $318k for the first 9 months of last year, an improvement of $126k;
- For Q3-20, operating activities generated cash flows of $521k compared to $419k for Q3-19, an improvement of $102k;
- As of June 30, 2020, cash totaled $875k compared to $422k as of March 31, 2020 and as of June 30, 2019 and $628k as of September 30, 2019. As of June 30, 2020, liquidities totaled $1,139k when including unused lines of credit. Working capital was $52k while compared to -$22k as of September 30, 2019 (excluding short term portion of the long term debt);
- In June 2020, the Company integrated Local Logic local information and mapping services to its 3D Pocket WebsitesTM;
- In this third quarter, the adoption of our new immersive 3D tours has been growing rapidly through the onboarding of both existing customers (i.e. PixVid, Virtual Access Tours) and new customers (i.e. Fast Office).
- During the quarter, the Company announced the nomination of a new president of the Board, Mr. Jean-François Grou, to replace Mr. James McDonald.
Selected financial information
| Three-month period ended June 30, 2020 | Three-month period ended June 30, 2019 | Nine-month period ended June 30, 2020 | Nine-month period ended June 30, 2019 | |
| In thousands $ | In thousands $ | In thousands $ | In thousands $ | |
| Gross Merchant Volume (GMV) * | 2,631 | 3,105 | 6,426 | 6,886 |
| Revenues** | 1,661 | 1,104 | 3,153 | 3,632 |
| COGS and direct charges | 717 | 56 | 941 | 1,028 |
| Gross margin ** (before amortization) | 944 | 1,048 | 2,212 | 2,604 |
| Amortization | 125 | 118 | 405 | 362 |
| Operating expenses | 597 | 526 | 1,773 | 2,303 |
| EBITDA | 347 | 522 | 439 | 301 |
| Other expenses (revenues) | 185 | (112) | 609 | (1,363) |
| Net income (loss) | 37 | 516 | (597) | 1,238 |
| Basic net income (loss) per share | 0.00 | 0.01 | (0.01) | 0.02 |
* 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
Overview - Impact of COVID-19
During this third quarter of 2020, continuation of the physical distancing restrictions and confinement imposed on its real estate photographers customers has accelerated the slowdown in real estate activities to reach a bottom around mid-April with revenues down by approx. 50% while compared to same period last year. After reaching that bottom, the Company observed a steady increase in its activities and even managed to get back to a pre-crisis normal level by the end of this quarter.
The Company has reacted rapidly to the situation by adopting some targeted measures to minimize the impact on the business and to pursue its business plan and commercialization strategy. The encouraging resurgence in real estate activities combined to the increasing demand for its new solutions of immersive 3D tours as well as its sound financial situation convinced the Company to relief some temporary measures at the end of the quarter in terms of both salary reductions and working capital management.
Moreover, customer rapid adoption of the Company’ new immersive 3D tours, which are perfectly adapted to the current social distancing needs tend to suggest that the significant changes observed with customers behavior and needs are there are here to stay and that the Company should benefit from it by consolidating its market leader position further in the market of immersive 3D tours.
Achievements
"During this third quarter in which we continue to navigate through a challenging economic environment related to the COVID-19 crisis, we are again extremely proud of the results achieved. Although we observed a significant slowdown in real estate activity reaching a low of -50% while compared to same period last year, we managed to generate revenue growth of more than 50% and significant cash flows from operations (+$521k) while reaching record high liquidities at $1.1m as of June 30, 2020. On the same comparison basis, when excluding change in billing method for Urbanimmersive in 2019, we are even ahead of last year by 17% on our revenues after 9 months which is a great accomplishment especially considering the exceptional circumstances related to COVID-19 and the significant slowdown in real estate activities”, said Simon Bedard, CFO of Urbanimmersive.
“In this quarter, we have tested and validated the beta version of our new innovative immersive 3D tours (3D Pocket WebsiteTM) and it was adopted by many important clients including customers in the commercial real estate. We have also finalized the development of our floor plans and measurements services which were launched in their beta version in July 2020. We have also bonified our service offering through the integration of Local Logic local information and mapping services. With all those recent progresses, we can now offer to our customers the full set of high value added 3D marketing solutions at the best price along with a scalable solution to allow us to expand our activities in other markets (i.e. commercial, industrial) in the upcoming months and then accelerate our growth. Sales of 3D photography equipment should also fuel growth of our SaaS revenues going forward ", said Ghislain Lemire, President and CEO of Urbanimmersive.
The Company has also issued 1,348,000 shares at a price of $0.05 to Management as compensation for the quarter and subject to a 4-month hold period from the date of issuance.
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 August 26, 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 August 26, 2020 1.00 p.m. to September 2nd, 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 4529418.
About Urbanimmersive
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 .
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:
Urbanimmersive Inc. Ghislain Lemire
President & CEO
514-394-7820 X 202
Simon Bédard, CA, CPA, CFA, MBA
Chief Financial Officer
514 394-7820 X 224
