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UrtheCast Reports Second Quarter 2018 Financial Results
VANCOUVER, Aug. 14, 2018 /CNW/ - UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company") today announces financial results for the three and six months ended on June 30, 2018 and provides an update on its financial condition. Q2 2018 Financial Results
Revenue decreased by $8.5 million in the second quarter of 2018 compared to the same quarter last year. Revenue from engineering services decreased by $7.0 million in the second quarter of 2018 compared to the same quarter last year, primarily due to a change in the expected completion date of one of our engineering services contracts, which resulted in the remaining revenue being recognized over a longer period. Earth Observation ("EO") imagery sales decreased by $1.5 million in the second quarter of 2018 compared to the same quarter last year, due to lower contract volume in the current year and a delay in securing a major contract award, which was announced subsequent to June 30, 2018 as described below in "Business Highlights". The net loss of $13.3 million and negative adjusted EBITDA of $7.4 million in the second quarter of 2018 were lower compared to the net loss of $3.9 million and adjusted EBITDA of $0.9 million in the same quarter last year, primarily due to the decrease in revenue. Donald Osborne, CEO of UrtheCast, commented, "UrtheCast is at a major inflection point in the Company's history, having recently achieved a significant milestone by securing financing for the groundbreaking UrtheDaily Constellation and undergoing a leadership transition. While our financial results for the second quarter reflect the extent of the changes that are currently underway, we are taking decisive action to strengthen the Company in a number of ways, including through the acquisition of Geosys, which expands our customer footprint and moves up the geoanalytics value chain. In this way, we believe that we can unlock the vast potential of UrtheCast's deep industry experience and best-in-class technology portfolio to establish clear market leadership and create lasting value for our shareholders." Business Highlights Geosys Acquisition
Unsecured Revolving Credit Facility
Major EO Contract Award
UrtheDaily Financing
Changes to the Board of Directors and Management
Outlook We refer you to the Company's condensed interim consolidated financial statements for the three and six months ended June 30, 2018 and the related Management's Discussion & Analysis for further details relating to the Company's liquidity position. The Company has taken steps subsequent to the quarter ended June 30, 2018 to ensure that it is able to continue as a going concern and that it has adequate liquidity in the near term. SELECTED FINANCIAL INFORMATION The following table provides selected financial information of the Company, which was derived from, and should be read in conjunction with, the unaudited condensed interim consolidated financial statements for the respective periods. All financial information is in thousands of Canadian dollars, unless otherwise noted, and except for per share amounts.
NON-IFRS EARNINGS MEASURES The following table reconciles our Non-IFRS earnings measures to Net Loss prepared in accordance with IFRS.
About UrtheCast UrtheCast Corp. is a Vancouver-based company that serves the rapidly growing and evolving geospatial and geo-analytics markets with a wide range of information-rich products and services. The Company currently owns and operates two Earth Observation (EO) satellites, Deimos-1 and Deimos-2. Together with its exclusive partnerships, spanning an additional 20 satellites, UrtheCast processes and distributes imagery data and value-added products on a global scale to partners and customers in multiple markets. UrtheCast is also launching UrtheDaily™, a satellite constellation that will be the most advanced change detection system in the world, designed to capture daily, scientific grade, high-quality, medium resolution optical imagery of the Earth's entire landmass (excluding Antarctica). UrtheCast is also developing OptiSAR™, a constellation of SAR satellites which, together with UrtheDaily™, will form the world's first fully-integrated optical and SAR constellation. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker "UR". For more information, visit UrtheCast's website at www.urthecast.com. Non-IFRS Financial Measures The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. This release includes certain non-IFRS financial measures, such as EBITDA and adjusted EBITDA. The Company uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS or considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS financial measures should be read in conjunction with the Company's financial statements and accompanying MD&A. Forward Looking Information This release contains certain information which, as presented, constitutes "forward-looking information" or "forward-oriented financial information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect" and "guidance", statements that an action or event "may", "might", "could" or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements relating to: UrtheCast's expectations with respect to: UrtheCast's expected completion of the Geosys acquisition on terms set out in this press release, the definitive documentation related thereto, or at all; UrtheCast's expectations with respect to its ability to pay all installments making up the aggregate purchase price; UrtheCast's expectations with respect to the revenue to be generated by the service level agreement; Deimos Imaging's expected ability to deliver data produced by Deimos-2 to the consortium and fulfil its other obligations under the consortium agreement with Airbus Defence and Space; UrtheCast's expected completion of the UrtheDaily Financing and beginning of the UrtheDaily Constellation build phase; UrtheCast's expectations with respect to its ability to raise proceeds from a subordinated debt or equity offering, achieve the required leverage and contracted revenue ratios and otherwise satisfy the first drawdown conditions and the final drawdown conditions under the Credit Agreement in a timely manner; opportunities to renegotiate current and future customer contracts; and the Company's ability to continue as a going concern. Such statements reflect UrtheCast's current views with respect to future events. Such statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by UrtheCast, are inherently subject to significant uncertainties and contingencies. Many factors could cause UrtheCast's actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including, among others: UrtheCast's inability to enter into definitive documentation or satisfy any of the other conditions to the completion of the Geosys transaction; UrtheCast's inability to fund the installments for the purchase price of the Geosys transaction; Deimos Imaging or any other imaging provider supplying data to the consortium being unable to deliver imagery products meeting the minimum specifications required by the consortium agreement; interruptions to or failures of Deimos' infrastructure or the infrastructure of any other imaging provider supplying data to the consortium; Airbus Defence and Space's inability to satisfy its payment obligations under the consortium agreement; ESA's inability to satisfy its payments obligations under the head contract with Airbus Defence and Space; legal and regulatory changes; UrtheCast's inability to raise proceeds from a subordinated debt or equity offering, achieve the required leverage and contracted revenue ratios or otherwise satisfy the first drawdown conditions or the final drawdown conditions under the Credit Agreement in a timely manner or at all; and uncertainty about UrtheCast's ability to continue as a going concern; as well as those factors and assumptions discussed in UrtheCast's annual information form dated April 2, 2018 (the "AIF"), which is available under UrtheCast's SEDAR profile at www.sedar.com. UrtheCast undertakes no obligation to update forward-looking statements except as required by Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements. SOURCE UrtheCast Corp. |