UGE Reports First Quarter 2018 Financial Results
Company Continues Strong Revenue Growth while Growing Backlog
Toronto, Ontario--(May 15, 2018)
UGE International Ltd. (the "Company" or "UGE") (TSXV: UGE) (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, 2018. UGE reports all amounts in US dollars.
First Quarter 2018 Highlights
Revenue for the quarter grew 10% to $6.1 million from the same period of the prior year. Revenue was driven by consistent progress on a large project in Peterborough as well as strong growth in the Philippines.
UGE recorded negative adjusted EBITDA of $69,000, compared with negative $183,000 in the same period of the prior year. The Company continues to improve its adjusted EBITDA and move towards sustained profitability.
At the end of the quarter, UGE's backlog was $41.2 million, with new projects totaling $11.3 million confirmed within the quarter.
Selected Financial Information
Analysis of Financial Results
During the three months ended March 31, 2018, UGE significantly grew revenues and backlog, as the Company continues to generate growth and move towards sustained profitability.
Revenue for the three months ended March 31, 2018 was $6,059,933, a 10% increase from the same period of the prior year of $5,498,094.
The gross profit margin for the three months ended March 31, 2018 was 18%, compared with 11% in the same period of the prior year, as we continue to focus more on self-developed projects which typically include higher gross margins.
On March 31, 2018, UGE had backlog of $41.2 million, which includes projects the Company expects will convert into significant revenue in future quarters. Growth in backlog was driven by $11.3 million of additional projects confirmed throughout the quarter, nearly all of which are being developed directly with our commercial clients.
SG&A expenses for the three months ended March 31, 2018 were $1,182,452, compared with $792,486 in the same period of the prior year, an increase of 49%, largely a result of the acquisition of the Carmanah Solar Power Corp. ("CSPC") business which closed in the second quarter of 2017. The first quarter's SG&A expenses were 8% lower than those for the fourth quarter of 2017, as final synergies from the acquisition were realized and as the Company continues to manage SG&A expenses carefully while gaining operating efficiency.
Adjusted EBITDA for the three months ended March 31, 2018 was negative $68,548, compared with negative $183,030 in the same period of the prior year, an improvement of 63%. As we continue to scale and move towards sustainably profitable operations, we have seen Adjusted EBITDA results improve significantly.
The Company recorded net loss for the three months ended March 31, 2018 of $800,635, compared with a loss of $360,026 in the same period of the prior year, an increase of 122%. This change was primarily due to a project loss relating to the delayed deployment schedule of a portfolio of projects in the US that were inherited through the acquisition of the CSPC business.
"Our first quarter results further illustrate the progress we are making as a company towards sustained profitability in the commercial solar sector," said UGE's CEO, Nick Blitterswyk. "Our team identified significant additional self-developed project opportunities throughout the quarter, as we continue to execute on our growth plan."
Full financial results and Management's Discussion and Analysis are posted to SEDAR (www.sedar.com) and are available through the Company's website.
Analyst and Investors Conference Call:
A conference call has been scheduled for analysts and investors to discuss the Company's results starting at 10:00am EDT. To join the conference, dial: 1 (888) 424-8151, Canada/US Toll Free, and confirmation number: 9688074# approximately five minutes prior to the start time. For a summary of call details and other freephone telephone numbers, click here.
For more information, contact:
Chief Financial Officer