Universal mCloud Reports First Quarter 2019 Results

2019-05-30T16:56:56+00:00May 30th, 2019|Press Release|
  • Q1 2019 revenues grew to C$2.2 million, up over 500% compared to Q1 2018
  • Expects to sign definitive agreements for the previously announced acquisitions of Fulcrum Automation Technologies, Autopro Automation and CSA by July 2019
  • Completed acquisitions will add combined trailing revenues of approximately C$37 million and C$6 million in EBITDA

VANCOUVER, May 30, 2019 /CNW/ – Universal mCloud Corp. (TSX-V: MCLD) (OTCQB: MCLDF) (“mCloud” or the “Company”), a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence (“AI”) and analytics, today announced its financial results for the first quarter ended March 31, 2019.

“As we advance our strategy of connecting energy assets with AI and analytics, we saw solid growth through the progress we made this past quarter in all three of our business segments in Smart Buildings, Wind, and Oil and Gas,” said Russel McMeekin, mCloud President and CEO. “We are focused on completing the previously announced acquisitions of CSA, Fulcrum Automation Technologies and Autopro Automation, which we expect will take our business to even greater heights.”

Q1 2019 Financial Highlights

The table below summarizes the Company’s operating performance for the first quarter of 2019:

mCloud Q1 2019 summary (all figures in Canadian dollars) Q1
Revenues $2,193,430
Gross Margin 1,861,264
Selling, General, and Administrative Expenses (SG&A) 765,889
Research and Development (R&D) 640,571
Sales and Marketing (S&M) 1,006,852
Normalized Income $ (552,048)
Acquisitions, Technology Integration, and New Market Expansion (1,837,818)
Other items (119,755)
EBITDA $(2,509,621)

The tables below are summaries of the first quarter 2019 standalone operating performance of CSA Inc. (“CSA”) and Autopro Automation Consultants Inc. (“Autopro”), for which the Company expects to have signed definitive agreements by July 2019:

CSA Inc. Q1 2019 summary (all figures in Canadian dollars)
Revenues $421,962
Selling, General, and Administrative Expenses (SG&A) $198,022
EBITDA $85,804


Autopro Automation Consultants Ltd. Q1 2019 summary (all figures in Canadian dollars)
Revenues $8,384,317
Selling, General, and Administrative Expenses (SG&A) $2,634,042
EBITDA $1,022,222
Per PwC Audited financials


Q1 2019 Operating Highlights

In the first quarter of 2019, the mCloud Smart Buildings segment made continued progress in the quick serve restaurant segment with new implementations at notable restaurant chains, in addition to the continued service of existing long-term customers. On the technology front, mCloud made significant advancements in the evolution of its AssetCare™ platform with the Microsoft Azure Cloud.

In January 2019, the Smart Buildings segment also started a nine-year AssetCare contract with partner SCN Ltd. (“SCN”) to connect the Heiwado Shopping Center in Changsha, Hunan Province, China. The Company provided an update in April 2019 announcing AssetCare connectivity had been established with the shopping center, marking a major implementation milestone.

In March 2019, mCloud’s Wind segment announced a strategic collaboration with Britwind, an affiliate of UK’s Ecotricity to target over 1,000 Endurance E-series wind turbines for upgrades that include AssetCare solutions for these turbines. Additionally, the Wind team is applying AssetCare analytics to improve wind turbine availability and health of wind turbines in China and continental Europe.

In April 2019, mCloud’s Smart Buildings segment began a six-year agreement with TELUS Corporate Real Estate (“TELUS”) to upgrade HVAC controls and deploy its AssetCare offering at 200 Consilium Place, a premier TELUS office tower in Scarborough, Ontario, Canada.

Go Forward Highlights

With the finalized acquisitions of CSA and Autopro in July 2019, the Company expects the stage to be set for mCloud as a major unified, high-growth player in AI-powered energy asset management, adding C$37 million in revenue and C$6 million in EBITDA. By late summer, the Company expects to bring onboard its first oil and gas customers, followed by significant wind deployments in China and the UK heading into the fall timeframe.

Additions to Convertible Debenture Financing Announcement

In relation to the Company’s announcement earlier today of a proposed debenture financing, the Company confirms that the net proceeds received by the Company from that financing will be used, in part, to: (a) satisfy all outstanding cash obligations of the Company in connection with (i) the Company’s previously announced acquisition of Flow Capital Corp.’s royalty interest in Agnity Global, and (ii) the Company’s proposed acquisition of CSA; (b) fund ongoing working capital requirements; and (c) fund the proposed expansion of the Company’s business, including its international operations. The Company does not intend to use any of the proceeds of the Offering to fund the Company’s recently announced proposed acquisition of Autopro. This acquisition will instead be funded, in part, by non-convertible debt to be obtained by the Company in connection with the completion of that acquisition.

About Universal mCloud Corp.

Universal mCloud is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Headquartered in Vancouver, Canada, with technology and operations centers in San Francisco, CA, and Bristol, PA, mCloud takes advantage of IoT sensors to bring data from connected assets into the cloud, applying AI and analytics to maximize their health and performance. Today, mCloud offers complete asset management solutions to three distinct segments: smart buildings, wind energy, and oil and gas. With over 100 blue chip customers and more than 28,000 assets connected in thousands of locations worldwide, mCloud is changing the way energy assets are managed. For more information, visit www.mcloudcorp.com.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, the completion of the Transaction, the future business prospects of the Company and the potential revenue of the Company.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to several risks as discussed under the heading “Risk Factors” on pages 29 to 46 of the Company’s filing statement dated October 5, 2017. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

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.

Craig MacPhail, NATIONAL Capital Markets, T: 416-586-1938, cmacphail@national.ca; Chantal Schutz, Chief Financial Officer, Universal mCloud Corp., T: 604-669-9973