TORONTO, Nov. 18, 2020 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced its financial results for the three and nine months ended September 30, 2020.
"Prodigy is responding to the shifts in the business as a result of COVID-19." said Jeff Watts, Prodigy's CEO. "The Company is maintaining a strong cash position and continuing to deliver its pipeline of work remotely without interruption while preparing for 2021."
Third Quarter 2020 Financial Results
Revenue for the three months ended September 30, 2020 totalled $3,787,029 as compared to $5,162,469 for the three months ended September 30, 2019, a decrease of 27%.
Gross profit for the three months ended September 30, 2020 of $1,101,009 as compared to $1,489,882 for the three months ended September 30, 2019, a decrease of 26%.
Operating Expenses for the three months ended September 30, 2020 of $862,654 as compared to $1,279,172 for the three months ended September 30, 2019, a decrease of 33%.
Net Income for the three months ended September 30, 2020 totalled $163,976 as compared to $150,933 for the three months ended September 30, 2019, an increase of 9%.
Adjusted EBITDA for the three months ended September 30, 2020 totalled $316,762 as compared to $271,901 for the three months ended September 30, 2019, an increase of 16%.
The Company had working capital of $2,506,833 as of September 30, 2020 compared to $2,728,512 as of December 31, 2019.
Year-to-Date 2020 Financial Results
Revenue for the nine months ended September 30, 2020 totalled $12,365,324 as compared to $15,330,893 for the nine months ended September 30, 2019, a decrease of 19%.
Gross profit for the nine months ended September 30, 2020 of $3,475,420 as compared to $4,399,149 for the nine months ended September 30, 2019, a decrease of 21%.
Operating Expenses for the nine months ended September 30, 2020 of $3,143,470 as compared to $3,849,266 for the nine months ended September 30, 2019, a decrease of 18%.
Net Income for the nine months ended September 30, 2020 totalled $215,234 as compared to $392,456 for the nine months ended September 30, 2019, a decrease of 45%.
Adjusted EBITDA for the nine months ended September 30, 2020 totalled $561,764 as compared to $732,049 for the nine months ended September 30, 2019, a decrease of 23%.
Three months ended
Nine months ended
Net and comprehensive income for the period
Net income per share – basic and diluted
Adjusted EBITDA is a non-GAAP financial measure, which is defined as earnings before income tax expense, finance costs, depreciation and amortization and share-based compensation. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in our business performance. Adjusted EBITDA is used by management to assess our operating performance. The presentation of Adjusted EBITDA is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA differently.
For further information regarding non-GAAP financial measures please see the Company's Management's Discussion and Analysis for the period ended September 30, 2020 under the heading "Non-GAAP Financial Measures".
The complete unaudited financial statements and associated Management's Discussion and Analysis are available under the Company's profile at www.sedar.com or the Company's website at www.prodigy.ventures.
Prodigy continues to carefully monitor and assess the evolving situation related to COVID-19 and the potential impact to its business, employees and customers. Although the impact to the future demand for the Company's services remains unknown, the Company has a continuing pipeline of work which is being delivered remotely without interruption. Furthermore, in the spirit of prudent management, the Company has taken steps to reduce its overhead and ongoing expenses to ensure it maintains a strong cash position. As a result, we believe the Company is well positioned to absorb economic impacts and maintain its long-term viability.
About Prodigy Ventures Inc.
Prodigy delivers Fintech innovation. The Company develops software and services with emerging technologies for digital transformation, identity and payments. Digital transformation services include strategy, architecture, design, project management, agile development, quality engineering and staff augmentation. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards: Deloitte's Fast 50 Canada and Fast 500 North America (2016, 2017, 2018), Branham 300 (2017, 2018), Growth List (2018, 2019 and 2020), Canada's Top Growing Companies (2019 and 2020).
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward looking statements in this press release include statements regarding the impact of COVID-19 on the Company's business. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2020, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Non-GAAP Financial Measures
Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Certain financial measures in this press release are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze operating performance. These non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Except as otherwise indicated, these non-GAAP measures are calculated and disclosed on a consistent basis from period to period.
Neither 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.
SOURCE Prodigy Ventures Inc.
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