UGE Reports Audited Fiscal Year 2016 Financial Results
Annual revenue increases 159% in 2016 as strong growth continues
NEW YORK, NEW YORK - (May 01, 2017)
UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in solar energy solutions for the commercial and industrial sector, reported its financial results for the year ended December 31, 2016. UGE reports all amounts in US dollars.
- On February 22, 2016, the Company closed the acquisition of Endura Energy Project Corp. ("Endura"), which has since been fully integrated into the operations of UGE. Endura adds significant scale and technical expertise to UGE's commercial solar platform.
- On September 6, 2016, UGE divested its wind energy subsidiaries, which management had deemed non-core to its ongoing strategy. The divestiture lowered expense levels, strengthened the Company's balance sheet, and focused management on its core offering in the commercial solar market. The transaction was accounted for as discontinued operations and the sale resulted in a gain of $3.3 million.
- For the three months ended December 31, 2016, UGE recognized the highest quarterly revenue in its history of $3.4 million as well as its lowest quarterly loss in the last two years.
Selected Financial Information
Analysis of Financial Results
During 2016, UGE significantly grew revenues and strengthened its balance sheet, both organically and through the Endura acquisition and wind divestiture. Subsequent to the year end, further growth was shown with the acquisition of substantially all of the assets of Carmanah Solar Power Corp. on April 3, 2017. Together, this has strengthened UGE's position in the commercial solar industry while eliminating expenses in non-core areas.
The Company would like to draw attention to the following points from its financial statements:
- Revenue from continuing operations for the year ended December 31, 2016 was $5.8 million, compared with $2.2 million in 2015, an increase of 159%. Revenue for the fourth quarter was $3.4 million, the largest quarterly revenue in the Company's history.
- At the end of the year, UGE had backlog of $34.9 million, representing projects that should translate into significant revenue in future quarters.
- The gross profit margin for the year ended December 31, 2016 was 23%, in line with UGE's near term targets, through contracting more profitable projects.
- Selling, general and administrative expenses were approximately $4.4 million in 2016, including $0.6 million applicable to non-cash expenses related to the acquisition of Endura.
- Due to significant improvements in all facets mentioned above, the Company reduced its net loss to $1.1 million for 2016, compared with $5.6 million in 2015.
"2016 was an exciting year for UGE, and sets us up for a great 2017 and beyond," said Nick Blitterswyk, CEO of UGE. "Our team worked incredibly hard to transform the business throughout the year, and look forward to carrying the positive momentum into strong results for 2017."
Full financial results and Management's Discussion and Analysis are posted to SEDAR (www.sedar.com) and are available through the Company's website.
For further information, please view UGE's investor newsletter, available at www.ugei.com/investors.