Bluedrop Releases Q1 Financial Resultsadmin
Bluedrop Releases Q1 Financial Results
Bluedrop completes acquisition of Atlantis Systems Corp (“Atlantis”) in the Quarter
St. John’s, Newfoundland CANADA, February 28, 2014 /FSC/ – Bluedrop Performance Learning Inc. (BPL – TSX Venture), today reported its financial results for the quarter ended December 31, 2013.
The revenue for the quarter ended December 31, 2013 was $2,037,198 compared to $2,530,458 for the comparative quarter last year, a decrease of 19%. Gross profit for the quarter was $784,149 down from $1,091,387, a decrease of 28% quarter over quarter. Pre-tax loss for the quarter was $2,748,597 (after recognizing Atlantis restructuring and transaction costs in the quarter of $1,480,406) compared with a loss for the same quarter last year of $323,829. After tax loss for the period was $2,080,450 compared to a loss of $307,422 for the comparative period last year. For further details please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2013 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.
As at December 31, 2013 the Company acquired by way of a Plan of Arrangement all of the outstanding and issued shares of Atlantis Systems Corp for a cash consideration of $1,000,000 and the assumption $2,500,000 of term debt. Atlantis brings a complementary customer base and a depth of experience and the combined operations will establish the Company as one of Canada’s leading defence training and simulation companies. The Company financed the acquisition through the issuance of $3,000,000 of unsecured convertible debentures. Acquisition related costs of $1,480,406 for employee terminations, legal and advisory services were recognized in the quarter.
The Bluedrop Learning Networks business unit (formerly CoursePark Learning Services) recognized continued growth in revenue of over 34% quarter over quarter. In particular, revenue increase in license sales of the CoursePark platform was strong. A decrease of 46% in revenue in the Bluedrop Training & Simulation business unit (formerly Defence and Aerospace) related primarily to delays in execution on certain professional services contracts which were expected to commence in the quarter. The displaced workers could not be entirely re-deployed to other programs thus resulting in significantly lower margins in the quarter. As well the business unit increased the costs to complete on one of its contracts which also decreased margins in the quarter.
The Company continued to invest in marketing initiatives by increasing its sales, marketing and support efforts in the Bluedrop Learning Networks business unit for an in quarter increase of $203,683 versus the same period last year. Offsetting this increase in the quarter was a decrease in sales and marketing costs of $65,777 in the Bluedrop Training & Simulation business unit. General and administrative expenses increased by $371,878 in the quarter compared to the same period last year with termination costs of a long term staff member accounting for a significant component of the increased expense. Government assistance decreased by $197,219 due to lower government incentives realized in the current quarter compared to the prior period. Finally, earnings (loss) before income taxes were significantly reduced during the current quarter due to recognizing $1,480,406 of acquisition related costs. See the Financial Statements and Management’s Discussion and Analysis for the quarter ended December 31, 2012 for more information.
Commenting on the results and progress of Bluedrop, Founder and CEO Emad Rizkalla said ” We were presented with some challenges in the quarter on the revenue line in the Bluedrop Training & Simulation business unit. We have worked with our major contractors in this business unit in the quarter to gain a better understanding of the terms of these contracts going forward. The Atlantis transaction firmly establishes Bluedrop as one of the Country’s leading and dominant players in defence training and simulation products and services. Atlantis brings a complementary customer and market base, a sound resume of experience and an efficient delivery team. We are integrating the Atlantis operations into the existing Bluedrop Training and Simulation business unit and we have reduced operating expenses through staff reductions and rationalization of overhead costs.”
Bluedrop Performance Learning (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Launched in 2004, with six offices and over 190 employees, Bluedrop is transforming the workplace by designing, developing and delivering practical, actionable and affordable training content that improves individual and overall performance of organizations. For more information, visit www.bluedrop.com.
Bluedrop Performance Learning
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Source: Bluedrop Performance Learning Inc. (TSX-V: BPL) http://www.bluedrop.com
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Posted: February 28th, 2014 under FSCWIRE.