Robust growth across all regions and industries delivers first
year of positive Adjusted EBITDA
Blackline Safety Corp. (TSX.V: BLN), a global leader of gas
detection and connected safety solutions, announced $10.7M in
record fourth-quarter revenue and $33.3M in overall revenue for its
fiscal year, which ended October 31, 2019. Total revenue jumped 87%
over the previous year with 316% growth over the past three years.
Blackline’s G7 line of connected safety wearables, cloud-connected
software, 24/7 live monitoring, Blackline Analytics platform and
other leading solutions continue to drive the company’s success and
ability to keep workers safe — across every environment and every
industry.
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Blackline Safety Q4 FY2019 infographic
(Photo: Business Wire)
“Throughout utility, energy, petrochemical and manufacturing
industries, digital transformation is changing the way that leading
businesses operate, optimize and keep their employees safe,” said
Cody Slater, CEO and Chairman at Blackline Safety. “Our remarkable
year of record revenue and significant growth in every market and
across every industry demonstrates that Blackline’s connected
safety technology and award-winning wearables are a key pillar of
the most advanced, digital-forward and people-centric
organizations.”
Revenues from recurring service and product sales were up 275%
in Europe, 69% in the United States and 50% in Canada
quarter-over-quarter. Beyond its strongest fiscal year finish ever,
Blackline closed the year with a solid position in cash and
short-term investments of $30.6M. Blackline also increased its
gross margin to 47% from 45% over the previous year due to
realizing the benefits and economies of scale from in-house
manufacturing and production volumes. Blackline achieved its first
year of positive Adjusted EBITDA, a non-GAAP metric that management
uses to track corporate performance. With a strong cash position,
Blackline evaluated possible acquisition opportunities through
FY2019. While Blackline will continue to monitor these
possibilities in 2020, it sees immediate potential from further
investment into its programs to drive organic growth
opportunities.
Blackline’s growth, particularly in Europe, reflects its
expansion into new sectors such as the United Kingdom’s water
utility industry. In the past year, Blackline secured three major
water utility clients with devices and services that displaced
conventional equipment with connected solutions. Yorkshire Water
adopted the G7 gas detection program with the option to add
real-time monitoring at a later time. Welsh Water purchased G7
safety wearables for lone worker monitoring, with the option to add
gas detection cartridges in the future. A third water utility
adopted Blackline’s G7 gas detection program with the option to add
real-time monitoring. These opportunities highlight the G7 product
line’s versatility and capability to support current and future
customer needs.
Today, Blackline has tens of thousands of live-connected safety
wearables deployed around the world and its cloud-hosted
infrastructure has recorded 110 billion data points, 2 billion
live-reported gas readings, 5 million live-monitored alerts and 1
million voice calls and messages. This deep base solidifies
Blackline’s position as a leading connected safety provider — from
wearable devices to live monitoring and data-driven solutions.
Nearing the completion of its G7 EXO area gas monitor development,
Blackline will expand its product line beyond wearables to total
workplace connectivity.
“At Blackline, we are committed to keeping hard-working
personnel safe and productive so they can return home to their
families every day,” said Mr. Slater. “Blackline’s next chapter
will see continued focus on our comprehensive approach to connected
devices, live monitoring, consulting and integration services that
can revolutionize how organizations operate and empower them to
provide a safer, more optimized working environment.”
Fourth quarter highlights
- Eleventh consecutive quarter of double-digit year-over-year
revenue growth
- Total revenue of $10.7M, a 94% increase over the prior year’s
Q4
- Recurring service revenue, including lease revenue, of $5.1M, a
42% increase over the prior year’s Q4
- Product revenue of $5.6M, a 191% increase over the prior year’s
Q4
- Total revenue grew by 275% in Europe, 69% in the United States
and 50% in Canada over the prior year’s Q4
- Overall gross margin percentage was 47% compared to 45% in the
prior year’s Q4
- Overall gross margin percentage was comprised of product and
service margin percentages of 29% and 68%, compared to 4% and 67%
in the prior year’s Q4
- Fourth consecutive quarter of positive Adjusted EBITDA
- Shipped orders worth $3.4M to a quarter of twelve major
water/wastewater companies in the United Kingdom for Blackline
Safety’s G7c connected gas detection wearables
- Launched Blackline Vision, a new data science offering to
assist businesses with optimizing their digital transformation
- Continued development of its new G7 Exo area monitor product
line with early access program launched
- Ranked on the Growth 500 list of fastest-growing companies in
Canada for the seventh consecutive year
Annual highlights
- Total revenue of $33.3M, an 87% increase over the prior
year
- First year of positive Adjusted EBITDA, reaching $0.6M
- Recurring service revenue, including lease revenue, of $18.0M,
a 59% increase over the prior year
- Product revenue of $15.3M, a 136% increase over the prior
year
- Total revenue grew by 139% in Europe, 93% and in the United
States and 62% in Canada over the prior year
- Contracted future service revenue (Blackline Complete lease
commitments) was $6.7M at October 31, 2019
- Overall gross margin of $15.5M compared to $7.7M over the
previous year
- Total cash and short-term investments of $30.6M at October 31,
2019
Financial Highlights
The subsequent values in this release are in thousands, except
for percentages and per share data.
Quarter Ended October 31
Year Ended October 31
2019
2018
Change
2019
2018
Change
Revenue
$
10,746
$
5,544
94
%
$
33,271
$
17,772
87
%
Gross Margin
$
5,099
$
2,504
104
%
$
15,502
$
7,731
101
%
Gross Margin Percentage
47
%
45
%
2
%
47
%
44
%
3
%
Net Loss
($
2,924
)
($
2,445
)
(20
%)
($
9,924
)
($
9,002
)
(10
%)
Net Loss per Share
($
0.06
)
($
0.06
)
($
0.21
)
($
0.23
)
Net Loss excluding stock- based
compensation expense
($
2,774
)
($
2,282
)
(22
%)
($
8,342
)
($
7,321
)
(14
%)
Adjusted EBITDA
$
155
($
677
)
$
554
($
1,096
)
Adjusted EBITDA per Share
$
0.00
($
0.02
)
0.01
($
0.03
)
Key Financial Information
Annual revenue for fiscal 2019 was $33,271 compared to $17,772
in the prior year, resulting in an increase of 87%, or $15,499.
Service revenue was $17,983, an increase of 59% compared to $11,301
in the year prior. These increases were driven by sales of
Blackline’s connected safety hardware of $15,288 in the year and
the growth in service revenues from the Company’s connected safety
monitoring for new and recurring revenues from customer renewals.
The continuing adoption of the Blackline Complete leasing program,
which eliminates up-front capital costs and provides customers with
a comprehensive safety monitoring program for a monthly fee, also
contributed to the overall revenue increase.
Fourth quarter revenue was $10,746, an increase of 94% from
$5,544 in the comparable quarter of the prior fiscal year with
revenue growth of 275% in Europe and 69% in the United States
quarter-over-quarter.
Product revenue during the fourth quarter was $5,615, an
increase of 191% compared to $1,931 in the same period last year.
The growth in revenues included a purchase of lone worker connected
safety devices by a third water authority in the United Kingdom to
adopt Blackline’s G7c cloud-connected safety wearables. The Company
also sold its products through the Blackline Complete leasing
program as finance leases in this period, contributing $354 in
hardware sales.
Service revenue was $5,131, an increase of 42% compared to
$3,613 in the same period last year, attributed to new service
activations by end customers from product sales and adoption of the
Blackline Complete leasing program with leasing revenues increasing
19% quarter-over-quarter.
Gross margin percentage for the fourth quarter was 47% compared
to 45% in the respective quarter of the prior year, with the
improvement driven by the growth of Blackline’s product and service
revenues quarter-over-quarter.
Adjusted EBITDA was $155 for the fourth quarter compared to
$(677) in the comparable quarter of the prior year. The increase in
the Adjusted EBITDA for the quarter was attributable to increased
revenues and gross margin, offset by an increase in selling,
general and administrative expenses quarter-over-quarter.
Blackline’s audited consolidated financial statements and
management’s discussion and analysis on financial condition and
results of operations for the period ended October 31, 2019
(including the reconciliation of non-GAAP measures) are available
at www.sedar.com. All results are reported in Canadian dollars.
About Blackline Safety: Blackline Safety is a global
connected safety leader that helps to ensure every worker gets
their job done and returns home safe each day. Blackline provides
wearable safety technology, personal and area gas monitoring,
cloud-connected software and data analytics to meet demanding
safety challenges and increase productivity of organizations in
more than 100 countries. Blackline Safety wearables provide a
lifeline to tens of thousands of men and women, having reported
over 100 billion data-points and initiated over five million
emergency responses. Armed with cellular and satellite
connectivity, we ensure that help is never too far away. For more
information, visit BlacklineSafety.com and connect with us on
Facebook, Twitter, LinkedIn and Instagram.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws
relating to, among other things, Blackline Safety's expectation to
realize potential from its intended investment in organic growth
opportunities in 2020, Blackline's intention to expand its product
offerings to total workplace connectivity and management's
expectation that Blackline will continue to focus on its
comprehensive approach to connected devices, live monitoring,
consulting and integration services. Blackline provided such
forward-looking statements in reliance on certain expectations and
assumptions that it believes are reasonable at the time, including
expectations and assumptions concerning business prospects and
opportunities; customer demands, the availability and cost of
financing, labor and services and the impact of increasing
competition. Although Blackline believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Blackline can give no assurance
that they will prove to be correct. Forward-looking information
addresses future events and conditions, which by their very nature
involve inherent risks and uncertainties, including the risks
discussed in Blackline's Management's Discussion and Analysis.
Blackline's actual results, performance or achievement could differ
materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what
benefits Blackline will derive therefrom. Management has included
the above summary of assumptions and risks related to
forward-looking information provided in this press release in order
to provide readers with a more complete perspective on Blackline's
future operations and such information may not be appropriate for
other purposes. Readers are cautioned that the foregoing lists of
factors are not exhaustive. These forward-looking statements are
made as of the date of this press release and Blackline disclaims
any intent or obligation to update publicly any forward-looking
information, whether as a result of new information, future events
or results or otherwise, other than as required by applicable
securities laws.
Neither 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200130005210/en/
INVESTOR/ANALYST Cody Slater, CEO
cslater@blacklinesafety.com Telephone: +1 403 451 0327
MEDIA Heather Houston hhouston@daltonagency.com
Telephone: +1 904 398 5222 Cell phone: +1 386 216 9472
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