UGE Reports Audited Fiscal Year 2016 Financial Results
ACCESS Newswire
NEW YORK, NY / ACCESSWIRE / May 1, 2017 / UGE International Ltd. (UGE.V) (UGEIF) (the "Company" or "UGE"), a leader in solar energy solutions for the commercial and industrial sector, reported its financial results for the year ended December 31, 2016. UGE reports all amounts in US dollars.
2016Highlights
On February 22, 2016, the Company closed the acquisition of Endura Energy Project Corp. ("Endura"), which has since been fully integrated into the operations of UGE. Endura adds significant scale and technical expertise to UGE's commercial solar platform.
On September 6, 2016, UGE divested its wind energy subsidiaries, which management had deemed non-core to its ongoing strategy. The divestiture lowered expense levels, strengthened the Company's balance sheet, and focused management on its core offering in the commercial solar market. The transaction was accounted for as discontinued operations and the sale resulted in a gain of $3.3 million.
For the three months ended December 31, 2016, UGE recognized the highest quarterly revenue in its history of $3.4 million as well as its lowest quarterly loss in the last two years.
Selected Financial Information
Three months ended December 31,
Years ended December 31,
Continuing operations:
2016
2015
2016
2015
Revenue
$
3,362,588
$
146,767
$
5,807,119
$
2,240,186
Cost of sales
(2,346,711)
(60,970)
(4,470,360)
(2,169,281)
30%
58%
23%
3%
Gross profit
1,015,877
85,797
1,336,759
70,905
Expenses
Selling, general and administrative
(1,735,325)
(604,013)
(4,352,774)
(2,314,006)
Net finance (costs) income
368,294
-
(97,389)
4
Income tax (expense) recovery
(24,798)
-
115,057
-
Net loss from continuing operations
(375,952)
(518,216)
(2,998,347)
(2,243,097)
Income (loss) from discontinued operations, net of income tax
(1,852,662)
(1,129,635)
1,910,061
(3,362,990)
Net loss
$
(2,228,614)
$
(1,647,851)
$
(1,088,286)
$
(5,606,087)
Loss per share from continuing operations - Basic and diluted
Basic and diluted
$
(0.01)
$
(0.03)
$
(0.10)
$
(0.17)
Loss per share from net loss - Basic and diluted
Basic and diluted
$
(0.07)
$
(0.09)
$
(0.04)
$
(0.42)
Analysis of Financial Results
During 2016, UGE significantly grew revenues and strengthened its balance sheet, both organically and through the Endura acquisition and wind divestiture. Subsequent to the year end, further growth was shown with the acquisition of substantially all of the assets of Carmanah Solar Power Corp. on April 3, 2017. Together, this has strengthened UGE's position in the commercial solar industry while eliminating expenses in non-core areas.
The Company would like to draw attention to the following points from its financial statements:
Revenue from continuing operations for the year ended December 31, 2016 was $5.8 million, compared with $2.2 million in 2015, an increase of 159%. Revenue for the fourth quarter was $3.4 million, the largest quarterly revenue in the Company's history.
At the end of the year, UGE had backlog of $34.9 million, representing projects that should translate into significant revenue in future quarters.
The gross profit margin for the year ended December 31, 2016 was 23%, in line with UGE's near term targets, through contracting more profitable projects.
Selling, general and administrative expenses were approximately $4.4 million in 2016, including $0.6 million applicable to non-cash expenses related to the acquisition of Endura.
Due to significant improvements in all facets mentioned above, the Company reduced its net loss to $1.1 million for 2016, compared with $5.6 million in 2015.
"2016 was an exciting year for UGE, and sets us up for a great 2017 and beyond," said Nick Blitterswyk, CEO of UGE. "Our team worked incredibly hard to transform the business throughout the year, and look forward to carrying the positive momentum into strong results for 2017."
Full financial results and Management's Discussion and Analysis are posted to SEDAR (www.sedar.com) and are available through the Company's website.
About UGE
UGE delivers immediate savings to businesses through cleaner electricity. We help commercial and industrial clients become more competitive through the low cost of distributed renewable energy. With over 330 MW of experience globally, we work daily to power a more sustainable world.
Jimmy Vaiopoulos Chief Financial Officer 917-720-5685 investors@ugei.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.
This press release and the Company's Management Discussion and Analysis for the three and nine months ended September 30, 2016 (the "MD&A") contain forward-looking information that involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such assumptions, risks and uncertainties include, without limitation, those associated with, loss of markets, expected sales, future revenue recognition, currency fluctuations, the effect of global and regional economic conditions, industry conditions, changes in laws and regulations, and changes in how they are interpreted and enforced, the lack of qualified personnel or management, fluctuations in foreign exchange or interest rates, demand for the Company's products, and availability of funding. The Company's performance could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if they do so, what benefits the Company will derive there from. The forward-looking information is made as of the date of this press release or the MD&A, as applicable, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Actual events or results could differ materially from the Company's expectations and projections.
