Halifax, NS, Canada, March 10, 2015– Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPL) today reported its audited financial results for the year ended September 30, 2015.
Revenue for the year ended September 30, 2015 was $21.2 million, up from $15.4 million, an increase of 38%. Gross profit for the year was $9.3 million, up from $6.0 million, an increase of 56%. Pre-tax income for the year was $0.4 million versus pre-tax loss in the prior year of $4.3 million, an improvement of $4.7 million. After tax income for the period was $0.3 million as compared to loss a of $3.8 million from the prior period. During the 2015 fiscal year the Company selected to change its accounting policy on a retroactive basis related to liabilities as a result of funding received from the Atlantic Innovation Fund. The obligations are now accounted for as financial liabilities using the effective interest method. For further details, please see the Financial Statements and Management’s Discussion and Analysis for the year ended September 30, 2015, which are available on the Company’s web site at http://www.bluedrop.com or on SEDAR at http://www.sedar.com.
The Company reported record revenues and gross profit for the year ending September 30, 2015 and a strong cash position at year end. Since the 2013 fiscal year, preceding the Atlantis acquisition, revenue has grown from $11.5 million to $21.2 million, an increase of 84%. The Company ended the year with more than $3 million in cash and no draw on its bank facility versus a cash deficit of just over $1 million at the yearend last year an improvement of over $4 million. Long term debt was reduced by $0.5 million in the year.
The Company continued with its previously announced re-alignment of its two operating business units to focus on two areas: (i) the development and delivery of training programs, and simulation technologies for the defence and aerospace industry (including the acquisition and the related Bluedrop defence and aerospace business) and (ii) the development and delivery of its SaaS Bluedrop Learning Network platform and programs for extended enterprise solutions that target employment and worker safety systems. The new corporate entities are Bluedrop Training & Simulation Inc. and Bluedrop Networks Learning Inc., both wholly-owned subsidiaries of Bluedrop. The restructuring has been undertaken for operating efficiencies, tax planning and future corporate initiatives and will not have any impact on the overall consolidated operations of Bluedrop or the rights or interests of shareholders.
Commenting on the overall results and progress for the year, founder and CEO Emad Rizkalla said, “This was clearly a good year for Bluedrop and all its employees who have delivered against the challenges we took on from the previous year. We achieved new financial highs and still stayed focused on building our two business units to be leaders in their respective fields. We have realized the benefits of the strategic realignment of the two business units with a sharper focus in each and by setting clear targets and objectives for each. Training and Simulation had an excellent year and continues to deliver an outstanding service to its clients while it is expanding its product offering in cooperation with Boeing to include the new crew trainer for the Chinook platform. At the same time we continued to make great strides in positioning the Learning Networks business as a leader in the workforce and occupational health & safety markets. We secured some key multi-million dollar reference accounts in both Canada and the US as we continue to demonstrate the benefits of our world class Bluedrop360 platform. We also shifted part of our client base towards a Software as a Service (SaaS) model to strengthen recurring revenues. I want to thank our staff for their commitment and excellence, they are among the best in the world in their fields, and our clients who challenge and inspire us every day. We look forward to another successful year where we will again strive to deliver better products and services even as we continue our growth.”
Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Bluedrop is transforming the workplace globally by designing, developing and delivering practical, actionable and affordable training content and delivery platforms that improve individual and overall performance of organizations. For more information, visitwww.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, 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 Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 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.
Chief Financial Officer
Bluedrop Performance Learning Inc.