BeWhere Holdings Inc. Reports Second Quarter Financial Results of Fiscal 2020
TORONTO, ON. August 24, 2020 – BeWhere (TSX-V: BEW, OTCQB: BEWFF) (“BeWhere” or the “Company”), a Mobile Internet of Things (M-IoT) solutions provider, is pleased to announce its financial results for three months ended June 30, 2020.
Owen Moore, CEO and Co-Founder stated “The Company progressed well during the second quarter, improving its recurring revenue, which contributed 47% of Total revenue, proving the value of its products. EBITDA improved for the third consecutive quarter resulting in Company recording the largest EBITDA in its history”. He further noted that “As a provider of remote monitoring and “track & trace” solutions, BeWhere has demonstrated the critical value of its solutions during the challenges presented by Covid-19. The Company continues to expand its technology to other user cases”.
Chris Panczuk, COO and Co-Founder stated “We are very pleased with the second quarter results, as revenue increased in May and June despite the Covid-19 related headwinds which delayed some large government projects. The Company remains focused on increasing its Recurring Revenue which increased 57% year over year in the second quarter”.
Second Quarter 2020 Highlights
- Recurring Revenue increased by 57% year over year – Recurring Revenue for the three months ended June 30, 2020 was $754,117 compared to $481,341 for the same period in 2019: an increase of $272,776.
- Recurring Revenue increased by 3% quarter over quarter – Recurring Revenue for the three months ended June 30, 2020 was $754,117 compared to $732,298 for the quarter ended March 31, 2020: an increase of $21,819.
- Total Revenue increased by 2% year over year – Total Revenue for the three months ended June 30, 2020 was $1,619,568 compared to $1,580,478 for the same period in 2019: an increase of $39,090.
- Total Revenue increased by 15% quarter over quarter – Total Revenue for the three months ended June 30, 2020 was $1,619,568 compared to $1,406,248 for the quarter ended March 31, 2020: an increase of $213,320.
- Gross Profit increased by 210% year over year – Gross profit for the three months ended June 30, 2020 was $316,502 compared to $102,085 for the same period in 2019: an improvement of $214,417 or 210%.
- Net loss improved by 90% year over year – Net loss for the three months ended June 30, 2020 was $39,133 compared to $410,274 for the same period in 2019, an improvement of $371,141 or 90%. The Company recorded its lowest quarterly Comprehensive loss.
- Recurring Revenue was 47% of the total revenue – For the three months ended June 30, 2020 Recurring Revenue contributed 47% of Total Revenue. For the six months ended June 30, 2020 Recurring Revenue contributed 49% of Total Revenue. The Company uses Recurring revenue as a key performance indicator (KPI) as it shows the long-term nature of revenue earned from our customer relationships.
- Working Capital – At June 30, 2020, the Company had a working capital balance of $3,855,930 including cash of $2,410,780. During the six months ended June 30, 2020, the Company maintained a healthy working capital despite incurring development costs totaling $373,580 for its next generation of M-IOT sensors and solutions.
- Adjusted EBITDA (non-IFRS measure) – The Company recorded positive adjusted EBITDA during the second quarter, representing the third consecutive quarter of positive EBITDA. Adjusted EBITDA for the three months ended June 30, 2020 was $54,239 compared to $(241,689) for the same period in 2019.
|Three months ended June 30||Six months ended June 30|
|EPS – basic||(0.00)||(0.00)||(0.00)||(0.01)|
Adjusted EBITDA is a non-IFRS measure and does not have standardized meaning as it relates to performance measures and may not be comparable to other issuer disclosures of similar performance measures. The Company has provided a reconciliation of Adjusted EBITDA to IFRS loss in the Management’s Discussion and Analysis for the year ended June 30, 2020. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, share-based compensation, and other non-recurring gains and losses. Management believes that Adjusted EBITDA is a useful measure that facilitates period to period operating comparisons. Adjusted EBITDA should not be considered superior to IFRS net income (loss).
Because BeWhere provides remote monitoring and track & trace solutions to the transportation, distribution, security, construction, food and government industries, the company has been designated an essential service by its mobile network operator partners at AT&T and Bell Mobility and therefore continued to operate during the Covid-19 pandemic.
The Covid-19 experience has highlighted the value of BeWhere’s monitoring solutions which provide two significant advantages. First the ability to remotely and fully monitor key equipment, and second the collection of detailed data which allows the user to make maximum, efficient use of their resources, be it construction equipment or grape vines. BeWhere’s monitors have proven their worth in the following applications:
- Transportation trailer location, conditions and utilization,
- Municipal clean water supply for rapid detection of pipe bursts and operational performance,
- Construction site conditions (flooding, temperature, air pressure, humidity, and equipment location,
- Atmospheric conditions data for agriculture.
As the application of its monitors becomes better known, BeWhere is well positioned to serve an increasingly broader market.
BeWhere (TSXV: BEW, OTCQB: BEWFF) is a Mobile Internet of Things (“M-IoT”) solutions company that designs and sells hardware with sensors and software applications to remotely track real-time information on non-powered fixed and movable assets, as well as remotely monitor environmental conditions. The company develops mobile applications, middle-ware and cloud-based solutions that stand-alone or that can be readily integrated with existing software. BeWhere’ solutions are cutting edge, using the latest available cellular technologies (LTE-M and NB-IoT) and offering customers low-cost sophisticated technology to implement a new level of visibility to their businesses.
Margaux Berry, VP Strategy and Growth
1 (844) 229-4373 x 107
Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”.
We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements.
Forward-looking statements include, but are not limited to, statements with respect to commercial operations, including technology development, anticipated revenues, projected size of market, and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
BeWhere Holdings Inc. (the “Company“) does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, technology development and marketing activities, the Company’s historical experience with technology development, uninsured risks. Actual results may differ materially from those expressed or implied by such forward-looking statements.
The Company’s Unaudited Interim Consolidated Financial Statements for the period ended June 30, 2020 and 2019, together with its corresponding Management’s discussion and analysis can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.bewhere.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the Policies of the TSX Venture Exchange) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.