Posted: Tuesday, August 14, 2018
UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company") today announces financial results for the three and six months ended on June 30, 2018 and provides an update on its financial condition.
Revenue decreased by $8.5 million in the second quarter of 2018 compared to the same quarter last year. Revenue from engineering services decreased by $7.0 million in the second quarter of 2018 compared to the same quarter last year, primarily due to a change in the expected completion date of one of our engineering services contracts, which resulted in the remaining revenue being recognized over a longer period. Earth Observation ("EO") imagery sales decreased by $1.5 million in the second quarter of 2018 compared to the same quarter last year, due to lower contract volume in the current year and a delay in securing a major contract award, which was announced subsequent to June 30, 2018 as described below in "Business Highlights".
The net loss of $13.3 million and negative adjusted EBITDA of $7.4 million in the second quarter of 2018 were lower compared to the net loss of $3.9 million and adjusted EBITDA of $0.9 million in the same quarter last year, primarily due to the decrease in revenue.
Donald Osborne, CEO of UrtheCast, commented, "UrtheCast is at a major inflection point in the Company's history, having recently achieved a significant milestone by securing financing for the groundbreaking UrtheDaily Constellation and undergoing a leadership transition. While our financial results for the second quarter reflect the extent of the changes that are currently underway, we are taking decisive action to strengthen the Company in a number of ways, including through the acquisition of Geosys, which expands our customer footprint and moves up the geoanalytics value chain. In this way, we believe that we can unlock the vast potential of UrtheCast's deep industry experience and best-in-class technology portfolio to establish clear market leadership and create lasting value for our shareholders."
Unsecured Revolving Credit Facility
Major EO Contract Award
Changes to the Board of Directors and Management
We refer you to the Company's condensed interim consolidated financial statements for the three and six months ended June 30, 2018 and the related Management's Discussion & Analysis for further details relating to the Company's liquidity position. The Company has taken steps subsequent to the quarter ended June 30, 2018 to ensure that it is able to continue as a going concern and that it has adequate liquidity in the near term.
UrtheCast Corp. is a Vancouver-based company that serves the rapidly growing and evolving geospatial and geo-analytics markets with a wide range of information-rich products and services. The Company currently owns and operates two Earth Observation (EO) satellites, Deimos-1 and Deimos-2. Together with its exclusive partnerships, spanning an additional 20 satellites, UrtheCast processes and distributes imagery data and value-added products on a global scale to partners and customers in multiple markets. UrtheCast is also launching UrtheDaily™, a satellite constellation that will be the most advanced change detection system in the world, designed to capture daily, scientific grade, high-quality, medium resolution optical imagery of the Earth's entire landmass (excluding Antarctica). UrtheCast is also developing OptiSAR™, a constellation of SAR satellites which, together with UrtheDaily™, will form the world's first fully-integrated optical and SAR constellation. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker "UR".
For more information, visit UrtheCast's website at www.urthecast.com.
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