Clear Blue Technologies International Announces Q2 2020 Financial Results
TORONTO, Aug. 27, 2020 (GLOBE NEWSWIRE) -- Clear Blue Technologies International Inc. (Clear Blue or “the Company”) (TSXV: CBLU) (FRANKFURT: 0YA), the Smart Off-Grid™ company, today reported its financial results for the fiscal quarter ended June 30, 2020.
Key Financial Results (all figures in Canadian dollars)
On a Trailing Four Quarter (TFQ) basis:
- Revenue was $3,641,514, a 37% increase over the previous TFQ period;
- Beginning with this quarter and going forward, the Company will begin reporting Bookings. For the period ending June 30, 2020, our Bookings were $2,094,729;
- Gross profit for TFQ was $881,224 or 24.2%, down slightly from the previous period ($787,198 or 29.5%). This was largely the result of a reallocation from operating expenses to COGS beginning in Q4 2019. Without this, Gross Profit or the previous TFQ would have increased to $1,011,355 or 28%;
- Operating expenses for the TFQ ended June 30, 2020 were $4,197,534, a decrease of $2,507,604 or 37% compared to the same period in 2019;
- Non-IFRS Adjusted EBITDA for the TFQ was $(2,592,899) as compared to $(5,669,234) for the previous TFQ—a 54% improvement resulting from various cost reduction plans undertaken by the company as well as government COVID-19 funding support;
For our quarterly Q2 2020 results:
- Clear Blue’s offices were closed from mid-March 2020 to the end of May as a result of COVID-19. As a result, Q2 quarterly revenues were $340,345, a 40% decrease over Q2 2019;
- Gross profit for Q2 was $144,568 or 42% Gross Margin;
- Quarterly, operating expenses decreased by 70% ($529,784 vs. $1,748,855) for the three-month period ended June 30, 2020 versus 2019.
- Quarterly EBITDA was ($414,473) a 72% improvement from Q2 2019. Clear Blue has undertaken a strong cost reduction plan as a general part of its overall 2020 plan to improve its EBITDA. In addition, additional cost reductions were undertaken in March to mitigate the short-term impact of COVID-19 and a number of government COVID-19 funding programs have been obtained in order to assist in funding of salaries over the period;
As with most firms, the pandemic has had an impact on Clear Blue—our offices were shut for almost three months, limiting production and shipments during that time. Fortunately, this occurred during our quiet season. Once offices re-opened, supply chain logistics and shipping impacted our ability to have a “V” recovery, with orders received in the first part of the year shipping primarily in August to October instead of June and July. From a full year perspective:
- North American Illumient Solar Lighting sales have been strong, and YTD sales has exceeded all of 2019’s results. The EaaS service offering has been well received. As a result of this new model, approximately 40% of every new Illumient sale in North America is now recurring revenue over time, which builds on our vision of delivering Energy as a Service to support mission critical commercial and public sector infrastructure;
- Telecom rollouts continue to move forward with a number of Operators in Africa and thru them with multiple large Telco’s. Included in our YTD results as well as Bookings, we have telecom systems being deployed to 9 countries through more than 5 partners. However, the timelines for implementation and final contract signatures has happened slower than anticipated, mainly as a result of COVID’s impact in Africa and Europe. While these projects are all active and moving forward on a daily basis, and we see new additional large-scale projects on the horizon, ramp up has been delayed by about 6 months over what the industry had foreseen in late 2019.
“Like most industries, our Customer’s projects and our own supply chains have experienced delays due to COVID-19,” said Miriam Tuerk, Co-Founder & CEO. “While this has delayed some of Clear Blue’s revenue, we have had no project cancellations and our pipeline remains similar to the pre-COVID pipeline. We remain confident that we have the same business opportunity we envisaged when we launched our Telecom market offerings.”
While there continues to be significant uncertainty over the forward outlook, as with the world economy and budgets in general, Clear Blue continues to see strong and strategic interest in its offerings in both of its key markets—North American Streetlights as well as Telecom in Emerging markets. Telecom, connectivity, and cleantech are key growth sectors in the world’s economy and Clear Blue continues to be positioned as a key and strategic leader in innovating technologies that make it possible to reliably and cost effectively provide clean off-grid energy to mission critical customers around the world.
The Company will host a conference call to discuss its latest financial results at 11:00 AM Eastern Time (Canada/U.S.) on Thursday, 27th of August 2020. Those interested can register at:
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 35 countries, including the U.S. and Canada. Clear Blue is publicly traded on the TSX Venture Exchange under the symbol CBLU.
Neither the 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” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Resulting Issuer’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 the prospective operating results and performance of the Company, including the potential for a successful Rollout project win in 2020.
By identifying such information and statements in this manner, the Resulting Issuer 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 the Resulting Issuer to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Resulting Issuer is speculative and subject to several risks including, without limitation, the risks discussed under the heading “Risk Factors” in the Resulting Issuer’s listing application dated July 12, 2018. Although the Resulting Issuer 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.
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