- Doubled Connected Assets under AssetCare from 6,000 to 12,600
- Adjusted EBITDA Near Break Even in Q1 2018
- Revenues Increased 25% Sequentially Q1 2018 vs. Q4 2017
- Gross Margin Increased 63% Sequentially Q1 2018 vs. Q4 2017
- Total Liabilities Lower by $4.1 million Sequentially Q3 2017 vs. Q1 2018
- Cash Position Significantly Improved from $430k at 12.31.17 to $1.8 million at 3.31.18
Vancouver, British Columbia (May 01, 2018) – Universal mCloud Corp. (TSX-V: MCLD) (“mCloud” or
the “Company”), a leading provider of Artificial Intelligence and Analytics (“AI&A”) and IoT-connected asset care technology, has provided a progress report on the operations and strategic activities of the Company over the past six months since its public initiation on October 13, 2017.
Strategic Acquisitions and Customer Wins:
Since October 2017, mCloud has completed three strategic acquisitions providing the technology and intellectual property foundation for mCloud’s Artificial Intelligence and Analytics (“AI&A”) AssetCare™ Cloud. These previously announced transactions consist of Norwin Energy Inc. (wind IP), Endurance Wind (last License), and nGrain (Artificial Intelligence and Augmented Reality IP). In addition, mCloud has entered into a letter of intent to acquire CSA Inc (3D Software and High Accuracy Scanning IP). These acquisitions will supplement the AssetCare platform enabling the Asset-circle-of-care.
Additionally, in Q4 2017, mCloud signed a strategic Master Reseller Agreement with TELUS for Smart Building Solutions in Canada. In this agreement, Telus and mCloud will target the approximately 440,000 buildings, as estimated by Statistics Canada, with high-energy intensity use profiles and rising energy rates. The Company also signed an IoT off balance sheet fund arrangement with Commercial Funding Group (CGF) of up to $50M. This is in place to provide customers with “easy decision” IoT retrofit and AssetCare connection leading to a worry-free energy optimization purchased on a subscription fee priced at a fraction of the delivered savings.
Over the last six months, mCloud entered into strategic relationships with Cypress Envirosystems and Lunera Inc to expand its IoT technology portfolio. Both companies’ offerings further maximize the smart building footprint that mCloud is able to service. Cypress Envirosystems provides pneumatic thermostats that convert large and relatively dated campuses and facilities into digital and smart, connected buildings. Lunera Inc complements this offering as it further enhances such buildings with its smart lighting products.
mCloud now has over 30 well known corporate brands with approximately 5,000 locations and facilities connected. New customer brands and multiple locations with numerous assets are now being engaged on a weekly basis both in the USA and Canada. mCloud’s software solutions continue to be extensively used by existing customers of the Company. This provides a very strong operating foundation of “sticky” repeat and recurring revenues.
Operating Results and Improvements
The Company has provided fourth quarter 2017 and first quarter 2018 operating results on a sequential, pro forma basis assuming the acquisitions of NGrain and CSA were in effect during these periods for comparability purposes. Co-Founder, CIO and CFO Michael A. Sicuro stated: “Our balance sheet has improved significantly since our public initiation last fall through the intelligent use of our capital proceeds, the successful execution of a disciplined process in our acquisitions activities and driving hard on the most important metric in our business – connected assets, which we have more than doubled in the last six months. This keen focus on connected assets and acquisitions, and our strategic use of operating capital, has also resulted in the improvements in our P&L during the past six months and achieving near break even in the most recent quarter.”
AssetCare Technology Progress
Over the past six months, mCloud targeted investments in AssetCare technology, developing a solid common architecture and platform that supports the vision and goals of the Company. The mCloud offering is built in the cloud, it allows the company to connect to an ever-increasing number of IoT devices. The company captures and stores the information in the cloud where learning algorithms and AI output the information required to better operate and maintain the assets under care. “What really sets AssetCare apart from competition is the embedded deep knowledge of the assets. This knowledge has and will continue to grow as more assets are connected and data stored for longer periods of time”, said Co-Founder and CGO Costantino Lanza.
Progress and Outlook
Revenues in the first six months of 2017 were primarily from US-based customers secured and expanded since joining mCloud. During these six months we saw significant demand and connected assets from existing customers and locations where mCloud is very well established. During the same period, mCloud launched targeted sales initiatives via its strategic partnership with TELUS. There are now coast to coast sales activities with strategic customers throughout Canada. mCloud has connected 105 wind turbines in the last six months. In Q2 of 2018, mCloud expects that drone data will be collected on a number of wind turbines in the USA and Canada and will form the basis for additional connected wind turbines with new functionality around AssetCare AI Blade Inspection. In April, mCloud announced a partnership with SCN Ltd in China to target it’s strategically captive >300M square feet of western and Japanese branded high-end retail and hotel facilities for AssetCare.
Co-Founder and CEO Russ McMeekin stated, “Over the past six months, we have built the technology base, resources and leadership combined with partnerships and market positioning to make mCloud a leading “pure play” publicly listed company in the global industrial Artificial Intelligence and Analytics (AI&A) space. We expect the kind of growth and performance we executed in the last six months to continue and to be sustainable on a go forward basis.”
Mr. McMeekin added, “The mCloud leadership team and founders have been major players in the industrial internet evolution for the last three decades working in and with Fortune 500 companies in these industries.”
About Universal mCloud Corp.
Universal mCloud is headquartered in Vancouver, BC with technology and operations centers in San Francisco, CA and Bristol, PA. mCloud is an Artificial Intelligence and Analytics , IoT connected asset care cloud solution company utilizing connected IoT devices, AI, deep energy analytics, secure mobile and 3D technologies that rally all asset stakeholders around an Asset-Circle-of-Care™, providing complete real-time and historical data coupled with guidance and advice based on deep analytics and diagnostics resulting in optimal performance and care of critical equipment. It’s all about the asset. The powerful and secure AssetCare™ environment is accessible everywhere, 24/7 through standard mobile devices, ruggedized headsets, and web browsers. For more information, visit www.mCloudCorp.com.
For additional information, please contact:
NATIONAL | Equicom
Chief Executive Officer
Universal mCloud Corp.
Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information concerning the ability to expand the asset base of the Company and the future business prospects and potential revenue of the Company.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, the risks discussed under the heading “Risk Factors” on pages 29 to 46 of the Company’s filing statement dated October 5, 2017. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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