BeWhere Holdings Inc. Reports Third Quarter Financial Results of Fiscal 2020
- First quarterly profit recorded
- Recurring revenue increased by 35% year over year
- Remote track & trace and collection of detailed data continues to prove its worth during the Covid-19 lockdown
TORONTO, ON. November 10, 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 September 30, 2020.
Owen Moore, CEO and Co-Founder stated “The Company progressed well during the third quarter, recording record revenue and net income”. He further noted that “despite a second wave of Covid-19, BeWhere has demonstrated improvement in all key performance indicators”.
Chris Panczuk, COO and Co-Founder stated “We are very pleased with the third quarter results. The Company remains focused on investing in new technology development with novel products and solutions expected to be introduced in the coming months”.
Third Quarter 2020 Highlights
- Net profit – The Company recorded its first quarterly Total Comprehensive profit for the three months ended September 30, 2020.
- Net profit (loss) improved by 112% year over year – Net profit for the three months ended September 30, 2020 was $25,808 compared to net loss $212,777 for the same period in 2019, an improvement of $238,585.
Net loss for the nine months ended September 30, 2020 was $98,506 compared to $1,129,654 for the same period in 2019, an improvement of $1,031,146 or 91%.
- Net profit (loss) improved by 166% quarter over quarter – Net profit for the three months ended September 30, 2020 of $25,808 compared to net loss $39,133 for the three months ended June 30, 2020, an improvement of $64,941.
- Recurring Revenue increased by 35% year over year – Recurring Revenue for the three months ended September 30, 2020 was $809,695 compared to $601,541 for the same period in 2019: an increase of $208,151.
- Recurring Revenue increased by 7% quarter over quarter – Recurring Revenue for the three months ended September 30, 2020 was $809,696 compared to $754,117 for the quarter ended June 30, 2020: an increase of $55,580.
- Total Revenue increased by 13% year over year – Total Revenue for the three months ended September 30, 2020 was $2,172,029 compared to $1,923,667 for the same period in 2019: an increase of $248,362.
- Total Revenue increased by 34% quarter over quarter – Total Revenue for the three months ended September 30, 2020 was $2,172,029 compared to $1,619,568 for the quarter ended June 30, 2020: an increase of $552,461.
- Gross Profit increased by 62% year over year – Gross profit for the three months ended September 30, 2020 was $438,781 compared to $271,337 for the same period in 2019: an improvement of $167,444.
- Recurring Revenue was 37% of the total revenue – For the three months ended September 30, 2020 Recurring Revenue contributed 37% of Total Revenue. For the nine months ended September 30, 2020 Recurring Revenue contributed 44% 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 September 30, 2020, the Company had a working capital balance of $3,766,221 including cash of $2,595,612. During the nine months ended September 30, 2020, the Company maintained a healthy working capital despite incurring development costs totaling $564,867 for its next generation of M-IOT sensors and solutions.
- Adjusted EBITDA (non-IFRS measure) – The Company recorded positive adjusted EBITDA during the third quarter, representing the fourth consecutive quarter of positive EBITDA. Adjusted EBITDA for the three months ended September 30, 2020 was $129,675 compared to $(53,440) for the same period in 2019.
|Three months ended September 30||Nine months ended September 30|
|Net Profit (loss)||25,808||(212,777)||(98,506)||(1,129,652)|
|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 profit (loss) in the Management’s Discussion and Analysis for the period ended September 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 food, distribution, security, construction 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 assets, be it construction equipment or grape vines. BeWhere’s monitors have proven their worth in the following applications:
- Transportation trailer location, temperature monitoring and utilization,
- Construction site conditions (flooding, temperature, air pressure, humidity, and equipment location,
- Atmospheric conditions data for agriculture,
- Medical equipment utilization and distribution,
- Municipal clean water supply for rapid detection of pipe bursts and operational performance.
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 September 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.