BPLI Holdings Inc. Releases 2020 Year End Financial Results
Ends Challenging Year with Strengthened Balance Sheet
ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)-- BPLI Holdings Inc. (“BPLI” or “the Company”) (TSX-V: BPLI) today reported its audited financial results for the year ended September 30, 2020.
BPLI consolidated revenue for the year ended September 30, 2020 was $25.4 million, up from $23.0 million, an increase of 10%. Gross profit for the year was $13.1 million up from $10.8 million, an increase of 21%. Pre-tax income for the year was $5.0 million as compared to pre-tax loss of $2.2 million. After tax income was $3.0 million as compared to after tax loss of $4.4 million for the same period in the previous year.
The Bluedrop Training and Simulation business unit revenues for the year were $19.6 million, up from $17.8 million for the same period in the previous year, an increase of 10%. Revenues from Courseware development services and In-service support were up $3.0 million for the period. Revenues from Simulation products and Software licences and subscriptions were down by $1.2 million for the period. Gross profit for the period was $8.8 million, an increase of $1.4 million over the prior year. Expenses, net of government assistance and other funding for the year were down $4.1 million from the previous year. Pre-tax income was $5.8 million for the year compared to $0.4 million in the previous year.
The Bluedrop Learning Networks business unit revenues for the year were $5.9 million, up from $5.2 million in the previous year, an increase of 12%. Revenues from Software licencing and subscriptions increased to $4.4 million up from $3.2 million while Courseware development services were down by $0.5 million for the period. Gross profit for the period was $4.3 million, an increase of $0.9 million over the prior year. Expenses, net of government assistance and other funding for the year were $5.3 million, up $0.2 million from the previous year. Pre-tax loss was $0.9 million for the current year compared to a loss of $1.8 million in the previous year.
The Company had positive cash flow from operating activities and from financing activities including additional new unsecured long-term debt in the year. The Company ended the year with cash on hand of $5.5 million. The Company has no secured long-term debt nor any term debt with financial covenants.
The Company invested $6.1 million in Research and Development in the year versus $5.5 million the previous year. The Bluedrop Training and Simulation business unit continued its investments to meet the development and delivery plans for the new crew training simulators. The Bluedrop Learning Networks business unit continued its investments to develop additional features and scalability capabilities for its SaaS platform.
The Company noted that while the ongoing COVID-19 global pandemic has created additional risk and uncertainty around future plans and activities, the event has had limited disruption to most of the Company’s ongoing operations as of the current date. The Company did note the simulation products business has experienced potential procurement and delivery delays due to travel restrictions and general market uncertainty.
Revenues decreased in the fourth quarter by $0.6 million compared to the same period last year due to lower revenues in the Training and Simulation business unit of $0.7 million and higher revenues of $0.1 million in the Learning Networks business unit. Expenses, net of government assistance and other funding for the quarter were down $1.3 million from that of the same quarter in the previous year.
For further details, please see the Financial Statements and Management’s Discussion and Analysis for the year ended September 30, 2020 which are available on the Company’s web site at www.bpli.ca or on SEDAR at www.sedar.com.
Commenting on the 2020 fiscal year, Founder and CEO Emad Rizkalla said “It was a very challenging year for all our team, who performed extremely well, as we worked our way through various configurations of workplace and work from home situations. In many ways this COVID pandemic has brought the teams together more and really highlighted the culture of caring for each other and giving back to those in need. Thank you to everyone for your dedication and support at these difficult times. Our goal is to come out of this smarter, stronger, and kinder.”
About BPLI Holdings Inc.
BPLI Holdings Inc. (TSX-V: BPLI) is the holding company for its investments in Bluedrop Training and Simulation and Bluedrop Learning Networks. Our companies are innovators in both the development of workplace e-learning and simulation as well as the way large organizations deliver, track and manage training. Our two divisions serve the world’s leading aerospace and defence organizations as well as broad cross sections of organizations focused on managing system wide health and safety and developing the skills of external workforces. BPLI is creating the workforce of the future by improving the effectiveness, speed and cost of training delivery and management. For more information, visit www.bpli.ca. You can follow us on Twitter: @Bluedrop_BPL.
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 BPLI, 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 BPLI’s expectations include general global economic conditions and the rapidly evolving effects of the COVID-19 pandemic. For additional information with respect to risk factors applicable to BPLI, reference should be made to BPLI's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, BPLI's Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2020. The forward-looking information contained in this release is made as of the date of this release and BPLI 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.
Treasurer and Corporate Secretary
BPLI Holdings Inc.
Source: BPLI Holdings Inc.