UrtheCast Reports Strong Second Quarter 2016 Financial Results
Posted: Tuesday, August 9, 2016
UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company") today announces financial results for the three and six months ended on June 30, 2016.
The Company is pleased to report Q2 non-IFRS revenues of $15.9 million (IFRS - $21.0 million), a 218% increase over Q2 2015 non-IFRS revenue of $5.0 million (IFRS $5.0 million). The Company's non-IFRS adjusted EBITDA was positive $5.0 million in the quarter compared to a loss of $1.8 million in 2015. Non-IFRS earth observation imagery revenue increased by approximately 130% from Q1 of fiscal 2016, growing from $1.3 million to $3.1 million. Non-IFRS engineering and value added services revenue also increased at the same rate from Q1 of fiscal 2016, growing from $5.5 million to $12.8 million. At June 30, 2016, the Company had total cash balances of $31.4 million and working capital of $28.4 million.
This continued significant year over year growth allows us to reaffirm our full year 2016 guidance to achieve non-IFRS revenue between $55 million and $60 million (representing an IFRS revenue range of $78 million to $83 million) and non-IFRS adjusted EBITDA guidance between $4.2 million and $6.2 million in fiscal 2016.
"Our financial results are beginning to reflect both the strong revenue momentum and significant operating leverage in our business," explained Wade Larson, CEO and co-founder. "We continue to see a strong expansion of our sales pipeline for our current business as well as significant progress toward realizing our goals for UrtheDaily and OptiSAR."
The Company announced a strategic partnership with OmniEarth, Inc. ("OmniEarth") in support of UrtheCast's planned UrtheDaily™ Constellation, expected to be capable of imaging the global landmass every day at 5 meters GSD. The UrtheCast-OmniEarth partnership includes collaborative system development, the sharing of intellectual property, and joint customer marketing activities. Based in Arlington, Virginia, OmniEarth is a leading data analytics company and a large consumer of Earth imagery. OmniEarth specializes in image processing, data fusion, and predictive analytics, in essence turning big data into actionable intelligence. One of OmniEarth's leading products is a tool for water utilities that estimates water demand, but the company has also served the energy industry, the agricultural sector, and the U.S. Federal Government.
UrtheCast will receive $5.0 million from the Government of Canada's Technology Development Program ("TDP"), as part of a $54 million contribution program for the development of new satellite technologies. UrtheCast's contract for the $5.0 million portion of the TDP award is scheduled to be paid out evenly over five years on a reimbursement basis as eligible costs are incurred.
UrtheCast issued a Request for Proposal ("RFP") to U.S. companies interested in a long-term strategic partnership to serve the United States Government, further to the Company's announcement on May 6, 2016. The RFP solicits prospective U.S. commercial partners with strong U.S. Department of Defense and Intelligence Community footprints to help deliver data and services from UrtheCast's planned 8-satellite UrtheDaily™ Constellation and 16-satellite OptiSAR™ Constellation to U.S. Government user agencies.
Technically, significant progress has been made on the dual band, multi-aperture SAR-XL payload and the high-resolution optical dual mode camera with both completing their preliminary design reviews. Also, at the OptiSAR mission level, the Mission Requirements Review was completed and the spacecraft is now under full development.
Starting in April we began delivering Deimos-1 imagery of the entire contiguous US – cloud-free – to the platform on a monthly basis. This complements an already existing 5–year archive of contiguous U.S. imagery on the platform.
UrtheCast's Deimos-2 data has been incorporated into the UrthePlatform's offerings, beginning with imagery from the San Francisco Bay Area, with additional Deimos-2 data of other areas expected to be added in the future. UrtheCast expects to soon make Sentinel-2 data, from the European Space Agency's Copernicus Programme, available for UrthePlatform users.