UGE International Reports 2015 First Quarter Financial Results
New York, New York – May 29, 2015 - UGE International Ltd. (the “Company” or “UGE”) (TSXV: UG, OTCQB: UGEIF), a leader in renewable energy solutions for the commercial and industrial sector, reported its financial results for the three months ended March 31, 2015. UGE reports all amounts in US dollars.
Q1 2015 Highlights
- UGE demonstrated robust growth in the quarter with confirmed orders reaching a new record high of $4.8 million, which also nearly equals the Company’s full year 2014 confirmed order amount of $4.9 million
- Growth in confirmed orders has maintained pace in the second quarter with year-to-date orders surpassing $9.0 million
- Revenue for the first quarter was $0.7 million, a decline of $0.1 million, while backlog (confirmed orders not yet recognized as revenue) grew to $6.4 million; deployment and recognition of backlog to accelerate through the rest of 2015
Selected Quarterly Financial Information
Results for the three months ended March 31, 2015
As the Company continues to execute its strategic plan, confirmed orders secured in the first quarter of 2015 reached their highest level in company history, at $4.8 million, an increase of 630% over the same period in 2014. Strong growth in confirmed orders is expected to result in strong revenue growth in the second half of 2015. Confirmed orders are firm contracts with customers and generally are recorded as revenue within three to nine months.
Revenue for the quarter ended March 31, 2015 was $0.7 million as compared with $0.8 million in the same period of the prior year. Due to the nature of our project based sales, revenue can at times fluctuate from quarter to quarter.
Gross margin in the first quarter remained steady at 33%, compared with 34% in the same period of the year prior.
Sales, general, and administrative (“SG&A”) expenses were $1.6 million in the quarter ended March 31, 2015 as compared to $1.1 million in the same period of the prior year. Employee compensation accounted for the increase of $0.5 million, of which $0.3 million was non-cash equity-based compensation. The remaining increase related to added staff to deploy our rapidly growing backlog.
As a result of decreased revenues, and increased SG&A, we had a net loss of $1.4 million in the quarter ended March 31, 2015 as compared with $0.8 million in same period of the prior year.
"I am extremely pleased with our focus and ability to execute on our growth strategy thus far in 2015 with confirmed orders alone matching what we accomplished in all of 2014, which further validates our strategy to be a leading provider of distributed energy solutions for commercial and industrial clients," said Nick Blitterswyk, CEO of UGE. "We look forward to further growth in both confirmed orders and revenue as our strong order book translates into revenue later this year.”
Full financial results and Management's Discussion and Analysis are posted to SEDAR and are available through the Company's website.
UGE is a leading full service renewable energy provider for commercial and industrial clients, with over 2,000 installations in more than 90 countries. Leveraging project financing and its proprietary technology platform, UGE deploys solar and microgrid energy solutions to reduce energy costs and increase resiliency, while making the world more sustainable.
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.
Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for UGE’s products and the availability of funding. These forward-looking statements are made as of the date hereof and UGE does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from UGE’s expectations and projections.