ST. JOHN’S, Newfoundland--(BUSINESS WIRE)--Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPL) today reported its audited financial results for the year ended September 30, 2016.
Revenue for the year ended September 30, 2016 was $24.8 million up from $21.2 million, an increase of 17%. Gross profit for the year was $11.4 million up from $9.3 million, an increase of 23%. Pre-tax income for the year was $1.4 million versus $0.4 million in the prior year an improvement of $1.0 million. After tax income for the period was $1.0 million as compared to $0.3 million in the prior year. For further details, please see the Financial Statements and Management’s Discussion and Analysis for the year ended September 30, 2016, which are available on the Company’s website at http://www.bluedrop.com or on SEDAR at http://www.sedar.com.
The Company reported record revenues and gross profit for the year ended September 30, 2016 and closed the year with a strong cash position. The Company ended the year with more than $6.0 million in cash (including $3.0 million in restricted cash) and had none of its bank facility drawn versus cash of just over $3.0 million at the year end last year. During the year the Company paid down $1.5 million of term debt and added $3.0 million of lower interest debt to increase the long term debt to $8.6 million at year end. Additionally, in the fourth quarter the Company renegotiated terms with Grenville Royalty to provide for an early termination clause in return for increased short term royalty payments that resulted in a financing charge of $0.7 million. During the year the Company bought back 1.4 million shares for a total consideration of $0.2 million by way of the normal course issuer bid and Difference Capital converted $0.1 million of their convertible debentures for 0.7 million shares. Subsequent to the year end the Company bought back 0.8 million shares for a total consideration of $0.1 million under the normal course issuer bid and Difference Capital converted an additional $0.5 million of convertible debentures held by them and received 3.5 million shares in the Company.
The Company made record investments in research and development in the year of $3.9 million that was fully expensed versus $1.2 million of gross research and development expenditures in the previous year. The Training and Simulation group invested $ 2.4 million in the year up from $0.1 million in the previous year. These investments were to develop the Rear Crew Mission Trainer (RCMT) for the Chinook helicopter as part of its ongoing development program with The Boeing Corporation. This program was fully funded under the previously announced Boeing contract. The Learning Networks group invested $1.5 million that was fully expensed in the period versus a gross investment of $1.1 in the prior year.
During the fourth quarter the Company determined that one project did not meet the requirements of revenue recognition during the first three quarters of fiscal 2016. As a result, the first three quarters in the year were adjusted by removing the revenues recorded and recognizing the expenditures incurred as a current asset at cost. The net effect of the retroactive restatement on net income for the nine months ended June 30, 2016 was a cumulative decrease of $0.3 million. For further details, please see the Financial Statements and Management’s Discussion and Analysis for the year ended September 30, 2016 which are available on the Company’s web site at http://www.bluedrop.com or on SEDAR at http://www.sedar.com.
Commenting on the overall results and progress for the year, Founder and CEO Emad Rizkalla said, “This was another good year for Bluedrop financially and at the same time we made record investments in our strategy to transform Bluedrop into a specialized product and proprietary technology based company. We achieved new financial highs and improved our balance sheet while still staying focused on building our two business units to be leaders in their respective fields. Training and Simulation had an excellent year and continues to deliver an outstanding service to its clients and made great strides this year in building the new RCMT for Boeing. This will be a pivotal year for that group as we are scheduled to deliver the first demonstration unit in early 2017. At the same time, we continue to position the Learning Networks business to be the enterprise grade platform and complete solution provider for the health and safety compliance markets and to expand our workforce development products. With our proprietary Bluedrop 360 platform and mobile enabled applications we are now able to clearly demonstrate to our current and future clients, unique benefits and a clear path to a more cost effective delivery and tracking for health and safety compliance and workforce development. Our employees are second to none and I want to thank them for another great year. We will count on their passion and commitment this year as we seek to harvest the benefits of our major investments in our proprietary technologies in both groups.”
Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in both the development of workplace e-learning and simulation as well as the way large organizations deliver, track and manage training. Our two divisions serve the world’s leading aerospace and defence organizations as well as broad cross sections of organizations focused on managing system wide health and safety and developing the skills of external workforces. Bluedrop is creating the workforce of the future by improving the effectiveness, speed and costs of training delivery and management. For more information, visit www.bluedrop.com.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2016. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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