Revenues increased by 39% in the Quarter with the acquisition of AtlantisSt. John's, Newfoundland(FSCwire)
- Bluedrop Performance Learning
(TSX-V: BPL) today reported its financial results for the nine months ended June 30, 2014
Revenues for the three month period ended June 30, 2014
increased by 39% to $4.5 million
(including revenues of Atlantis Systems Corp.
(“Atlantis”) from the $3.2 million
in same period in 2013 while gross profit remained constant at $1.7 million
quarter over quarter. Pre-tax loss for the quarter was $0.2 million
compared to $0.1 million
for the same period last year.
For the nine months ended June 30, 2014
revenue was $11.0 million
, up from $8.6 million
, an increase of 29% on the same period in the previous year. Gross profit for the period was $4.2 million
, an increase of $0.3 million
over the nine month period ended June 30, 2013
. Pre-tax loss was $3.7 million
for the nine month period compared to a loss of $1.0 million
in the previous year, an increase of $2.7 million
. Included in the nine month period ended June 30, 2014
were acquisition and restructuring costs of $1.9 million
related to the acquisition of Atlantis. After tax loss for the period was $2.8 million
compared to after tax loss of $0.8 million
for the same period in the previous year.
As at December 31, 2013
the Company acquired by way of a Plan of Arrangement all of the issued and outstanding shares of Atlantis Systems Corp
for a cash consideration of $1.0 million
and the assumption of $2.5 million
in term debt. Atlantis brings a complementary customer base and a depth of experience and the combined operations will establish the Company as one of Canada’s leading training and simulation companies. The Company financed the cash component of the purchase price from the proceeds of a $3.0 million
unsecured convertible debenture.
During the nine month period ended June 30, 2014
, the Bluedrop Learning Networks business unit (formerly CoursePark Learning Services) increased revenue by 8% and gross profit by 18% compared with the same period last year, primarily as a result of growth in licensing revenue within the period which generated stronger margins. The inclusion of revenues in the Bluedrop Training & Simulation business unit (formerly Defence and Aerospace
) from the Atlantis acquisition resulted in greater revenues in this business unit during the nine months ended June 30, 2014
. However lower margins were realized in this business unit during the period due to delays in executing several professional services contracts. Excess capacity in the billable base was corrected subsequent to the end of the nine month period with the alignment of the new combined operation with the current backlog and contracts in place or in final stages of completion.
General and administrative expenses increased by $0.7 million
in the nine month period versus the same period last year due to the acquisition of Atlantis in December 2013
. Finance costs for the nine month period were $0.9 million
versus $0.3 million
for the same period last year, an increase of $0.6 million
. The increase in finance costs arises from the term debt taken on by the Company to finance the Atlantis acquisition and related transaction costs. The net loss for the nine month period was significantly impacted by the $1.9 million
in acquisition and restructuring costs incurred to purchase Atlantis. These costs included legal fees, advisory services and employee termination costs. During the third quarter the Company successfully completed the disposition of nursing courseware content to realize a net gain on the transaction of $0.2 million
The working capital position of the Company at June 30, 2014
was adversely affected by the inclusion of a term loan for $1.5 million
in current liabilities which matures within the next twelve months. The Company is in the process of seeking out new funding to retire the term debt on or before it reaches maturity. Accounts payable and accruals on the balance sheet at June 30, 2014
for transaction costs and employee termination obligations arising from the acquisition and integration of Atlantis.
For further details please see the Financial Statements and Management’s Discussion and Analysis for the nine months ended June 30, 2014
which are available on the Company’s web site at www.bluedrop.com
or on SEDAR at www.sedar.com
Commenting on the overall results and progress for the first nine months of the year, founder and CEO Emad Rizkalla
said, “We are pleased to see the continued revenue growth in the nine month period. This is attributable to the successful integration of Atlantis and clearly demonstrates that the acquisition has positioned the Company as a significant player in the Defence and Aerospace
market place. We are committed to building our unique Learning Networks platform into a premier skills enablement service. It is also critical that we shore up our balance sheet with fresh equity or new term debt in order to retire the term loan that is coming due in the next twelve months and to provide necessary funding to unfold the Company’s business plan in the next year”.About BluedropBluedrop Performance Learning
(TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Launched in 2004, with five offices and over 165 employees, Bluedrop is transforming the workplace by designing, developing and delivering practical, actionable and affordable training content that improves individual and overall performance of organizations. For more information, visit www.bluedrop.com
.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 and Atlantis, 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 Nine Months Ended June 30, 2014. 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.
Media contact:Bernie Beckett
Chief Financial OfficerBluedrop Performance Learningberniebeckett@bluedrop.com
To view this press release as a PDF file, click onto the following link:public://news_release_pdf/bluedrop08292014.pdf
Source: Bluedrop Performance Learning Inc.
(TSX Venture:BPL) http://www.bluedrop.com