Q1 Revenues up 58% With Continued Strategic Investments in Research and Development
Bluedrop Performance Learning ("Bluedrop") (TSX-V: BPLI) today reported its financial results for the three months ended December 31, 2019.
Revenue for the three months ended December 31, 2019 was $6.1 million, up from $3.9 million for the same period in the previous year, an increase of 58%. Gross profit for the period was $3.2 million, an increase of $1.6 million over the three-month period ended December 31, 2018. Pre-tax income was $1.4 million for the current quarter compared to a loss of $1.6 million for the same period in the previous year. After tax profit for the three months ended December 31, 2019 was $0.8 million compared to a loss of $1.1 million for the same period in the previous year, an increase of $1.9 million.
Revenues increased in the first quarter by $2.3 million compared to the same period last year due to higher revenues in the both the Training and Simulation business unit and the Learning Networks business unit. Training and Simulation revenues were up $2.0 million as a result of increased project activity and simulation products under production in the quarter. Learning Networks revenues were up by $0.3 million due to higher revenues from SaaS licence arrangements. Expenses for the quarter were down by $1.3 million from that of the same quarter in the previous year. During the quarter the company finalized its development contract with Boeing, resulting in an increase in government assistance and other funding for the quarter that was mostly related to costs incurred in prior periods. On a normalized basis expenses were more inline with that of the previous period.
Bluedrop continued its investment trend in its Research and Development efforts with $1.3 million of investment in the quarter in programs designed to build new and stronger intellectual property-based products. The Company has invested $5.6 million in Research and Development in the last twelve months and expects to increase its investments in Research and Development in fiscal 2020. The Training and Simulation business unit will continue its investments to meet the development and delivery plans for the new crew training simulators. The Learning Networks business unit will continue its investments to develop additional features and scalability capabilities for its SaaS platform.
As at October 1, 2019 the Company adopted the new IFRS 16 accounting standard for leases as required by the Accounting Standards Board. Accordingly, the Company recognized right-of-use assets and lease liabilities on the consolidated statements of financial position of $2.5 million each at the beginning of the quarter. The Company has elected to adopt the standard using the modified retrospective method and therefore comparative information for fiscal 2019 has not been restated.
For further details, please see the Financial Statements and Management’s Discussion and Analysis for the three months ended December 31, 2019 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.
Commenting on the quarterly results of Bluedrop, Founder and CEO Emad Rizkalla said "It was a good quarter for both the Training and Simulation and the Learning Networks business units. Both business units continue to deliver on existing and new contracts based on our own intellectual property. We remain committed to investing in our technology and building a strong pipeline and backlog for our crew-based simulators and our compliance and workforce development SaaS based solutions. Bluedrop will ask the shareholders to approve a name change for the Company to BPLI Holdings Inc. at the Annual and Special Meeting of Shareholders on March 10, 2020. This change reflects our ongoing process of separating and redefining the two operating companies in their respective markets and with their unique technologies."
Bluedrop Performance Learning Inc. (TSX-V: BPLI) 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 cost of training delivery and management. For more information, visit www.bluedrop.com. You can follow us on Twitter: @Bluedrop_BPL.
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, including, without limitation, statements regarding the impact of the operational restructuring and future plans and objectives of Bluedrop, 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 Management’s Discussion and Analysis of Results of Operations and Financial Condition for the quarter ended December 31, 2019. 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.
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.
Treasurer and Corporate Secretary
Bluedrop Performance Learning Inc.