BPLI Holdings Inc. (“BPLI” or “the Company”) (TSX-V: BPLI) today reported its financial results for the three months ended March 31, 2020.
BPLI revenue for the three months ended March 31, 2020 was $6.2 million, up from $5.0 million for the same period in the previous year, an increase of 23%. Gross profit for the period was $3.3 million, an increase of $1.0 million over the three-month period ended March 31, 2019. Pre-tax income was $0.5 million for the current quarter compared to a loss of $1.6 million for the same period in the previous year. After tax income for the three months ended March 31, 2020 was $0.2 million compared to loss of $1.1 million for the same period in the previous year.
The Bluedrop Training and Simulation business unit revenues were $4.8 million, up from $3.6 million for the same period in the previous year, an increase of 31%. Revenues from all categories were up for the period. Gross profit for the period was $2.3 million, an increase of $0.9 million over the three-month period ended March 31, 2019. Expenses for the quarter were down $0.5 million from that of the same quarter in the previous year. Pre-tax income was $1.0 million for the current quarter compared to a loss of $0.5 million for the same period in the previous year.
The Bluedrop Learning Networks business unit revenues were $1.4 million, versus $1.4 million for the same period in the previous year. Revenues from Software licencing and subscriptions increased to $1.0 million up from $0.7 million while Courseware development services declined by $0.2 million. Gross profit for the period was $1.0 million, an increase of $0.1 million over the three-month period ended March 31, 2019. Expenses for the quarter were down $0.4 million from that of the same quarter in the previous year. Pre-tax loss was $0.2 million for the current quarter compared to a loss of $0.8 million for the same period in the previous year.
The Company had positive cash collections in the quarter and ended the quarter with cash on hand of $1.2 million. There was no draw on the short term credit facilities as at March 31, 2020.
The Company invested $1.6 million in the quarter and $5.6 million over the last 12 months in Research and Development. The Bluedrop Training and Simulation business unit invested $1.1 million in the quarter to meet the development and delivery plans for the new crew training simulators. The Bluedrop Learning Networks business unit invested $0.5 million continuing 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, at this time the event has had minimal disruption to the Company’s operations due to the Company’s ability to implement measures such as working remotely from certain facilities and implementing appropriate social distancing and cleaning regimes in its remaining workplaces. As the pandemic continues, it is possible to see delays in contract procurement, project completion and other operating activities. The Company may also experience disruption to ongoing contracts, including long-term in-service support contracts, and delays in executing against strategic plans. Management is unable to determine the duration and magnitude of adverse impacts that may occur in future periods resulting from the outbreak.
For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended March 31, 2020 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.
Commenting on the quarterly results, Founder and CEO Emad Rizkalla said, “We were very fortunate to be able to continue to operate both businesses during these trying times. Most of the staff are working from home other than essential services personnel at military locations. We transitioned to the work from home environment with minimal disruption as we already had in place work from home programs, the infrastructure and the systems to quickly pivot. The financial results are very encouraging, and we remain optimistic that we will continue full operations in both our businesses while continuing to invest in R&D programs. I could not be more proud of the commitment and dedication of the Bluedrop teams as they continue to deliver for our clients. The two operating businesses took their travel savings over a few months and collectively committed $100,000 to True Blue, our staff sponsored charitable program. Our staff topped that up with voluntary payroll deductions. The True Blue team has been active in providing funding to those most in need at home and globally. 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.bplihondings.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 March 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.