Friday, 17 August 2018 05:40 PM
Bluedrop Performance Learning (TSX-V: BPL) today reported its financial results for the six months ended March 31, 2014.
Revenues for the three month period ended March 31, 2014 increased by 60% to $4.5 million (including Atlantis Systems Corp (“Atlantis”) revenues) from the $2.8 million in same period in 2013 and gross profit increased by 53% to $1.7 million for the quarter ended March 31, 2014 from $1.1 million for the same period in 2013. Pre-tax loss for the quarter was $0.8 million (after recognizing restructuring and transaction costs in the period of $0.2 million) compared to $0.6 million for the same period last year. Commenting on the results for the quarter Emad Rizkalla, President and CEO said, “We were starting to enjoy some of the benefits of the recent acquisition and are pleased to see the strong revenue growth in the quarter ended March 31, 2014. The cost savings are tracking to the previously disclosed $3 million annual savings target and we are receiving very positive feedback from our many new customers.”
Revenue for the six months ended March 31, 2014 was $6.5 million up from $5.3 million, an increase of 22% on the same period in the previous year. The increase reflects the consolidation of revenues from Atlantis which was acquired on December 31, 2013. Gross profit for the period was $2.5 million, an increase of $0.3 million over the same period in the previous year. Pre-tax loss for the period was $3.5 million (after recognizing restructuring and transaction costs in the period of $1.9 million related to employee terminations, legal and advisory services) compared to a loss in the same period last year of $0.9 million. After tax loss for the period was $2.6 million compared to a 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 outstanding and issued shares of Atlantis Systems Corp for a cash consideration of $1.0 million and the assumption of $2.5 million of 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 acquisition from the proceeds of a $3.0 million unsecured convertible debenture.
During the six month period ended March 31, 2014, Bluedrop Learning Networks business unit (formerly CoursePark Learning Services) experienced revenue growth of 33% and gross profit growth of 80% over the previous period as a result of increased business in both Learning Networks licensing sales and courseware development projects within the period. The inclusion of revenue in the Bluedrop Training & Simulation business unit (formerly Defence and Aerospace) from the Atlantis acquisition in the second half of the period ended March 31, 2014 more than offset the decline in revenue from delays in execution on certain professional services contracts in the first three months of the period. Overall the Training & Simulation business unit had revenue growth of 18% in the six month period.
The Company continued to invest in marketing initiatives by increasing its sales, marketing and support efforts in the Learning Networks business unit for a cost increase of $0.4 million in the six month period versus the same period last year. Offsetting this increase in the six month period was a decrease in sales, marketing and support costs in the Training and Simulation business unit of $0.2 million versus the same period last year. The net increase in the cost of marketing initiatives was 16% period over period.
General and administrative expenses increased by $0.5 million in the six month period versus the same period last year due to additional general and administration expenses from the Atlantis acquisition together with an increase in technology costs and advisory fees. Finance costs for the six month period were $0.5 million versus $0.2 million for the same period last year, an increase of $0.3 million. The increase in finance costs arises from additional term debt taken on by the Company to finance the Atlantis acquisition and related restructuring and transaction costs. During the six months ended March 31, 2014 the Company incurred restructuring and acquisition costs in the amount of $1.9 million for legal fees, advisory services and employee termination costs. The restructuring and acquisition costs of $1.9 million significantly increased the net loss for the six month period ended March 31, 2014. Accounts payable and accruals on the balance sheet at March 31, 2014 included $1.8 million for legal fees, advisory services and employee termination obligations.
For further details please see the Financial Statements and Management’s Discussion and Analysis for the six months ended March 31, 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 quarter, Founder and CEO Emad Rizkalla said, “This quarter was the first to include the combined operations of Atlantis with revenues increasing by 60% and gross profit by 53%. We are encouraged with the results to date. The combination of the two businesses has proceeded very well and the combined team is highly motivated. The Learning Networks business unit continues to show significant revenue growth in both the Learning Networks platform and in courseware development projects as a result of the strong investment in marketing initiatives.”
About Bluedrop
Bluedrop 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 185 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.
Media contact:
Bernie Beckett
Bluedrop Performance Learning
709-739-4938