UGE Reports First Quarter 2017 Financial Results
TORNONTO, ONTARIO- (May 26, 2017)
UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in renewable energy solutions for the commercial and industrial sector, reported its financial results for the three months ended March 31, 2017. UGE reports all amounts in US dollars.
First Quarter 2017 Highlights
- Revenue for the quarter grew 903% to $5.5 million, the highest in UGE's history, while selling, general and administrative ("SG&A") expenses grew just 6%.
- UGE generated positive cash flow from operations of $0.7 million in the quarter, and used the cash generated to repay debt, lowering future finance costs.
- As a result, UGE recorded its smallest quarterly net loss in the past three years, at $0.4 million.
- At the end of the quarter, UGE's backlog was $31.6 million. In addition, subsequent to the end of the quarter UGE announced a contract with Philippine Spring Water Resources Inc., as well as the acquisition of substantially all the assets of Carmanah Solar Power Corp. ("CSPC"), both of which further added to the Company's backlog.
Selected Financial Information
Analysis of Financial Results
During the three months ended March 31, 2017, UGE significantly grew revenues and reduced its net loss, bringing the Company much closer to profitability. Subsequent to the quarter end, further growth was shown with the acquisition of substantially all the assets of CSPC on April 3, 2017.
The Company would like to draw attention to the following points from its financial statements:
- Revenue for the three months ended March 31, 2017 was $5.5 million, compared with $0.5 million in the same period of the prior year from continuing operations, an increase of 903% and the highest in UGE's history.
- On March 31, 2017, UGE had backlog of $31.6 million, representing projects the Company expects will translate into significant revenue in future quarters. Subsequent to quarter end, UGE announced a contract with Philippine Spring Water Resources Inc., as well as the acquisition of the CSPC business, both of which further added to Company backlog.
- The gross profit margin for the three months ended March 31, 2017 was 11%, largely due to this quarter's revenue being driven by a portion of a large project portfolio which was known to generate a gross margin lower than the Company's overall target.
- SG&A expenses were $0.8 million for the three months ended March 31, 2017, compared with $0.8 million for the same period in the prior year from continuing operations, showing UGE's ability to scale revenues while maintaining expense levels.
- As a result, UGE reduced its net loss to $0.4 million for the three months ended March 31, 2017, the smallest loss in the last three years, compared with a net loss of $1.7 million in the same period in the prior year.
"Our first quarter results further illustrate the progress we are making as a company to grow profitably in the commercial solar sector," said UGE's CEO, Nick Blitterswyk. "Our team continues to focus on growing and executing on our backlog, as our expectations for the future continue to grow as well."
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.