Clear Blue Technologies Announces 2021 Q2 Financial Results
Q2 Revenue increased 138% to $810,406, Gross Margin of 38%, EBITDA of $(833,495)
August 26, 2021, TORONTO, ON -- Clear Blue Technologies International Inc. (“Clear Blue”) (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF), the Smart Off-Grid™ Company, today announces its financial results for the quarter ended June 30, 2021, with the following highlights:
Key Financial Results (all figures in Canadian dollars)
On a Trailing Four Quarter basis:
- TFQ Revenue was $7,714,708, an 112% increase over the previous TFQ period;
- Gross profit for TFQ was $2,100,743 or 27.2%, a 138% increase from the previous period ($881,224 or 24.2%);
- Non-IFRS Adjusted EBITDA for the TFQ was $(3,018,375) compared to $(3,038,214) for the previous TFQ.
- Q2 quarterly revenues were $810,406, a 138% increase over $340,345 for Q2 2020, a combination of Illumient sales in North America, and telecom sales attributed to contracts with telecom infrastructure operators in Africa;
- Gross profit for Q2 was $304,283 or 37.5% compared to $144,568 for Q2 2020, a significant increase resulting from higher revenue for the quarter;
- Quarterly Non-IFRS Adjusted EBITDA was $(833,495) versus $(918,951) in Q2 2020, a 9% improvement resulting from higher revenue, partially offset by higher adjusted operating expenses for the current quarter.
The second quarter of 2021 saw a meaningful increase in Clear Blue’s revenues compared to the same period in 2020. Much of that revenue can be attributed to new contracts with telecom infrastructure operators in Africa, which the Company recognizes as an important vertical for continued growth. The global market for telecom tower power systems was $4.47 billion USD in 2021 and will grow at a 3.25% CAGR to $5.25 billion USD in 2026, according to a report by Mordor Intelligence Market Research.
Due to its innovative technology and customer-centric approach, Clear Blue is receiving strong global commitments across multiple countries in this region, and from numerous public and private stakeholders, helping to bring connectivity to growing populations across Africa. For instance, during the quarter, Clear Blue announced a contract with Parallel Wireless to provide Smart Off-Grid power systems and services for a telecom operator in Africa that are expected to ship in Q3 2021.
“The strength of opportunity for Clear Blue in the telecom vertical is exciting and much more significant than originally thought,” said Miriam Tuerk, Co-founder & CEO of Clear Blue. “We are expanding our marketing and new business outreach to telecom operators in new geographic markets, with a particular focus on sub-Saharan Africa and Latin America. In addition, we are investing aggressively in R&D for the fast-growing wireless cellular and satellite markets, which we believe will be highly dependent on reliable off-grid power for commercial viability.”
When it comes to reliable off-grid power, Clear Blue holds the first-mover advantage in Energy-as-a-Service (“EaaS”) for mission-critical infrastructure, which has been a core focus of the Company’s business strategy. Customers receive long-term assurance of reliable power, and Clear Blue is paid recurring revenue over time for its services. Recurring services revenue from Illumience & EaaS increased 113% for the quarter and 106% for the TFQ ended June 30, 2021 compared to the same periods in 2020. Clear Blue also leads the market for Smart Off-Grid, as evidenced by the deployment of its systems in more than 37 countries, with over 6.4 million days of operating data and more than 10 billion transactions processed between Clear Blue’s systems and its cloud software.
Clear Blue expects this growth to continue during Q3 and Q4 2021, which are historically strong periods for customer demand due to the seasonality of capital construction projects. Subsequent to the second quarter and in line with this expectation, the Company announced three major contracts for large-scale rollouts of Smart Off-Grid power. These include a multi-million dollar contract with NuRAN Wireless for Smart Off-Grid power systems in the Democratic Republic of the Congo; a collaboration with Avanti Communications to deploy rural connectivity across sub-Saharan Africa; and a joint project, known as Project Seismic, with Facebook Research and Mayu Telecomunicaciones to create an independent study to validate and quantify the benefits of Smart Power. As a result of these announcements, together with bookings and a strong sales funnel, Clear Blue is optimistic about continued growth throughout fiscal 2021 and sees this as further evidence that the Company is leading the market in clean, reliable off-grid power solutions.
Beginning this quarter, Clear Blue will also be providing forward revenue guidance for the Following Four Quarters or FFQ, based on experience factors calculated from forecasts and actual results compared over the past three years. This calculation replaces the “soft” guidance on Large Rollouts provided for past reporting periods. FFQ revenue for the period Q3 2021 to Q2 2022 is $8.0 million versus the TFQ for this quarter of $7.4 million and the prior TFQ ended June 30 2020 of $3.6 million.
Continues Tuerk: “Due to the emphasis on large-scale rollouts and the numerous expansive, multi-phase telecom contracts that have been signed, Clear Blue now has much greater certainty on the predictability of its forward-looking revenue. This forward guidance is a key milestone that will showcase the true potential for Clear Blue in the market as the Company progresses towards its growth targets. The FFQ revenue for the period Q3 2021 to Q2 2022 highlights our expectations for steady growth and reduced volatility in our revenues quarter-to-quarter going forward.”
The Company will host a conference call to discuss its latest financial results at 11:00 AM Eastern Time (Canada/U.S.) on Thursday, August 26, 2021. Those interested can register at:
Montieth & Company
155 E 44th St., New York, NY 10017
Co-Founder and CEO
+1 416 433 3952
About Clear Blue Technologies International
Clear Blue Technologies International, the Smart Off-Grid™ company, was founded on a vision of delivering clean, managed, “wireless power” to meet the global need for reliable, low-cost, solar and hybrid power for lighting, telecom, security, Internet of Things devices, and other mission-critical systems. Today, Clear Blue has thousands of systems under management across 37 countries, including the U.S. and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB: CBUTF)
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.
This press release contains certain "forward-looking information" and/or "forward-looking statements" within the meaning of applicable securities laws. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Clear Blue’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Clear Blue's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, information concerning financial results and future upcoming contracts.
By identifying such information and statements in this manner, Clear Blue is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Clear Blue to be materially different from those expressed or implied by such information and statements.
An investment in securities of Clear Blue is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risk Factors" in Clear Blue's listing application dated July 12, 2018. Although Clear Blue has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, Clear Blue has made certain assumptions. Although Clear Blue believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release. All subsequent written and oral forward- looking information and statements attributable to Clear Blue or persons acting on its behalf is expressly qualified in its entirety by this notice.”