UGE Reports Second Quarter 2017 Financial Results
Company Posts Highest Quarterly Revenue to Date and Positive Adjusted EBITDA in Milestone Quarter
UGE International Ltd. (TSXV: UGE) (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 June 30, 2017. UGE reports all amounts in United States dollars.
Second Quarter 2017 Highlights
Revenue for the quarter grew more than 5X to $6.3 million, the highest in UGE's history, while gross margins increased to 19%.
UGE posted positive adjusted EBITDA for the first time, recognizing $12,000 in the second quarter of 2017.
At the end of the quarter, UGE's backlog was $47.9 million, representing confirmed projects the Company expects to build over the next 12-18 months, up $16.3 million from March 31, 2017.
Selected Financial Information
Analysis of Financial Results
During the three months ended June 30, 2017, UGE grew revenue 444% over Q2 2016 and reached positive adjusted EBITDA for the first time as the Company continues to grow rapidly. The Company would like to draw attention to the following points from its financial statements:
During the quarter, the Company closed the acquisition of the Carmanah Solar Power Corporation ("CSPC") business, completed a brokered bought deal private placement, and confirmed new projects with several clients including Peterborough Utilities, Elemental Energy, Potentia, Sheridan College, Nature's Spring, and a real estate ownership trust in the northeast United States.
Revenue for the three months ended June 30, 2017 was $6.3 million, compared with $1.2 million in the same period of the prior year from continuing operations, an increase of 444% and the highest in UGE's history for the third quarter in a row.
On June 30, 2017, UGE had backlog of $47.9 million, compared with $31.6 million as of March 31, 2017, based on strong sales results throughout the quarter.
The gross profit margin for the second quarter increased to 19%, compared with 10% in the same period of the year prior, as the Company deployed projects more in line with its short-term goals.
SG&A expenses were $1.7 million for the second quarter, compared with $1.0 million for the same period in the prior year from continuing operations, with the increase mainly due to one-time costs related to the acquisition of the CSPC business of $0.3 million, as well as overhead related to operating the CSPC business of $0.3 million.
"UGE's focused approach to the mid-scale solar sector is resulting in exponential growth and an increasingly strong market leadership position," said UGE's CEO, Nick Blitterswyk. "We remain focused on executing our strategic plan and look forward to sharing additional progress in the second half of the year."