Fourth straight quarter of over 100% year-on-year growth
Calgary, AB – Blackline Safety Corp. (TSX Venture: BLN) (“Blackline” or “Company”), a leading manufacturer of employee safety monitoring solutions today announced its results for the three and nine-month periods ended July 31, 2015.
Q3 Highlights
- Achieved record Q3 revenue of $1.7M, more than 2.27 times Q3 of the prior year
- Achieved record gross margin of $739k, over 1.9 times more than Q3 of the prior year
- Nine-month revenue for current year exceeds full prior year revenue by 20%
- Launched Loner Mobile and Loner Duo smartphone safety monitoring solutions
- Launched Loner Complete which provides leading satellite-based monitoring as a simple operating lease
- All remaining warrants from the July 31, 2012 private placement were exercised in the quarter
“The Company’s focus on developing and promoting leading lone worker safety monitoring has delivered a track record of consistent growth through the last four quarters,” says Cody Slater, CEO and Chairman of Blackline. “In spite of several pressures within the domestic and international economies, our new Blackline
Safety brand is emerging as a key player in the global stage of protecting employees who are working alone.” He added, “Organizations across a wide variety of industries and markets are driving Blackline’s growth through deployment of our safety monitoring technology.”
Financial Highlights
| |
Quarter Ended July 31 |
Nine-Month Period Ended July 31 |
| |
2015 |
2014 |
Change |
2015 |
2014 |
Change |
| Revenue |
$1,724 |
$761 |
127% |
$5,015 |
$2,135 |
135% |
| Gross Margin |
$739 |
$387 |
91% |
$2,293 |
$1,031 |
122% |
| Gross Margin percentage |
43% |
51% |
(16%) |
46% |
48% |
(4%) |
| Adjusted EBITDA |
($180) |
($572) |
69% |
($601) |
($1,453) |
59% |
| Net Loss |
($1,458) |
($1,262) |
(16%) |
($2,980) |
($3,475) |
14% |
| Loss per Share |
($0.06) |
($0.06) |
0% |
($0.13) |
($0.17) |
24% |
(Values in thousands except for percentages and per share data)
Key Financial Information
Revenue grew by 127% over the same period of the prior year, reaching a record level for the third quarter of $1.7M. This increase was primarily driven again by sales of the Loner Bridge System that launched in Q4 of FY2014. Revenue for the nine-month period topped $5.0M, surpassing the amount achieved during the full 2014 fiscal year by 20%.
Gross margin progressed alongside revenue to another Q3 record of $739k. Gross margin for the nine-month period topped $2.3M surpassing the amount achieved during the full 2014 fiscal year by 27%. The increased gross margin was the primary driver for the $852k improvement in Adjusted EBITDA for the nine-month period over the same period of the prior year.
The Company recorded $451k of stock based compensation expense in the quarter without which the net loss would have been $1.0M, an improvement over the same period of the prior year of 18%.
During the quarter, investors exercised all remaining warrants from the July 31, 2012 private placement and broker warrants, raising an additional $585k of funds. The Company will use the funds to develop additional safety monitoring capabilities to support diverse customer needs.
Blackline’s unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the three and nine-month periods ended July 31, 2015 are available at www.sedar.com. All results are reported in Canadian dollars. To learn more about Blackline Safety, visit www.blacklinesafety.com and follow Blackline on Twitter @blacklinesafety.
About Blackline: Blackline Safety Corp. (TSX.V: BLN) is a wireless location leader that develops, manufactures, and markets products and services for worker safety monitoring. Targeting a broad cross-section of industries where safety is a corporate priority, Blackline’s Loner solutions are promoted through offices in Calgary and the United Kingdom, and sold through a growing network of international distributors. Blackline’s safety solutions deliver safety and location awareness through mobile messaging, monitoring portal, Blackline’s Safety Operations Center, and web services. Blackline's vision is to become the leading supplier of wirelessly connected lone worker safety monitoring products in the world. Blackline products allow customers to protect their personnel, share the conditions of their environment, and connect with emergency services when necessary. Blackline solutions Protect. Share. Connect.® For more information, visit www.blacklinesafety.com.
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.
