Press release

BPLI Releases Q1 2021 Financial Results

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BPLI Holdings Inc. (“BPLI” or “the Company”) (TSX-V:BPLI) today reported its financial results for the three months ended December 31, 2020.

BPLI consolidated revenue for the three months ended December 31, 2020 was $7.0 million, up from $6.1 million for the same period in the previous year, an increase of 13%. Gross profit for the period was $3.7 million, an increase of $0.5 million over the three-month period ended December 31, 2019. Pre-tax income was $0.1 million for the current quarter compared to $1.4 million for the same period in the previous year. After tax income for the three months ended December 31, 2020 was nil compared to $0.8 million for the same period in the previous year.

The Bluedrop Training and Simulation business unit revenues were $5.2 million, up from $4.8 million for the same period in the previous year. Revenues from Courseware development services and in-service support were up $0.8 million for the period. Revenues from simulation products were down by $0.3 million for the period. Gross profit was $2.3 million for the three-month period ended December 31, 2020, consistent with the previous year. Expenses for the quarter were up $1.1 million from the same quarter in the previous year. Pre-tax income was $0.5 million for the current quarter compared to $1.6 million for the same period in the previous year.

The Bluedrop Learning Networks business unit revenues were $1.8 million, up from $1.3 million for the same period in the previous year. Revenues from Software licencing and subscriptions increased to $1.6 million up from $1.0 million while Courseware development services were down $0.2 million from the same period the previous year. Gross profit was $1.3 million for the three-month period ended December 31, 2020, an increase of $0.4 million over from the same quarter in the previous year. Expenses for the quarter were down $0.1 million from that of the same quarter in the previous year. Pre-tax income was $0.1 million for the current quarter compared to a loss of $0.4 million for the same period in the previous year.

The Company had positive cash flow from operating activities and ended the quarter with cash on hand of $7.3 million.

The Company invested $2.1 million in the quarter and $7.0 million over the last 12 months in Research and Development. The Bluedrop Training and Simulation business unit continued its investments to meet the development and delivery plans for the new crew training simulators and related software solutions. 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 pandemic has had minimal disruption to most of the Company’s ongoing operations as of the current date. There is added uncertainty for various simulation product deliveries and schedules due to travel restrictions and potential procurement delays as a result of the pandemic.

For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2020 which are available on the Company’s web site at www.bpli.ca or on SEDAR at www.sedar.com.

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 quarter ended December 31, 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.