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Bluedrop Releases Year End Financial Results and Clarifies Impact to Same and Prior Year Annual and Quarterly Results


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2014-01-28 22:49:22 -

Revenues up 14% Year over Year; Continues Investment in Growth Opportunities


St. John's, Newfoundland CANADA, January 28, 2014 /FSC/ - Bluedrop Performance Learning Inc. (BPL - TSX Venture), today reported its audited financial results for the year ended September 30, 2013 and provided information on the impact of certain revenue recognition adjustments at year end on same and prior year annual and quarterly financial statements previously filed.

The revenues for the year ended September 30, 2013 were $11,527,765 up from $10,118,532, an increase of 14%. Gross profit for the year was $5,521,594 up from $5,017,726, an increase of 10%. Pre-tax loss for the year was $2,300,416 versus pre-tax earnings in the prior year of $96,025, a decrease of $2,396,441. After tax

loss for the period was $1,723,610 as compared to loss of $19,827 in the prior period. For further details, please see the Financial Statements and Management's Discussion and Analysis for the year ended September 30, 2013, which are available on the Company's web site at www.bluedrop.com or on SEDAR at www.sedar.com.

During the fiscal year ended September 30, 2013, the Company reviewed its accounting policies for revenue recognition in the CoursePark Learning Services business unit under multiple-element arrangements. As a result of the review, management has determined that the Company's accounting for perpetual licenses under IFRS as presented in previously issued financial statements was not in accordance with generally accepted accounting principles. In previously reported financial statements such revenues were recognized immediately given an indefinite useful life. In the restated financial statements, management has estimated a useful life based on factors specific to individual licensing arrangements. Revenue is recognized on a straight-line basis over the estimated useful life. A more detailed explanation and reconciliation is included in Management's Discussion and Analysis.

The impact of the above adjustments to revenue and related tax impact has been reflected in the comparative financial results for the prior year in the financial statements for the year ended September 30, 2013. Several line items in the first three quarterly financial statements for the year and in the financial statements for the previous year were restated based on the closing of the accounts for the year ended September 30, 2013. This will require the three previous quarters for 2013 to be restated for comparison purposes going forward. The previously reported quarterly results will be restated in the comparative results when the Company reports its quarterly financial results for the fiscal year ending September 30, 2014.

The following tables summarize the impact of the above transactions on the interim statements of comprehensive income (loss) and basic and fully diluted earnings per share for the previous two fiscal periods as filed on SEDAR.

Bluedrop Performance Learning Inc.
Statements of Comprehensive Income (Loss)
For the Year Ended September 30, 2013
(With Restated Quarters)



(Canadian dollars in thousands)

Fiscal year 2013

YE QE June 30
Sept 30 Restated Previous

Revenue
Defence & Aerospace $ 7,971 $ 2,095 $ 2,095
CoursePark Learning Services $ 3,557 $ 1,155 $ 980

11,528 3,250 3,075
Direct costs 6,006 1,479 1,479

Gross profit 5,522 1,771 1,596

Gross profit percentage 48% 54% 52%
Expenses
Sales and marketing 2,767 741 741
General and administration 3,842 1,107 1,107
Government assistance (896) (307) (307)
Share-based compensation 363 6 6
Finance costs 382 89 89
Depreciation and amortization 825 206 206
Impairment loss 539 - -

7,822 1,842 1,842

Earnings (loss) before income taxes (2,300) (71) (246)
Income taxes (recovery) (577) (16) (63)

Net earnings (loss) $ (1,723) $ (55) $ (183)


Net earnings (loss) per share
Basic (0.0174) (0.0006) (0.0019)
Diluted (0.0174) (0.0006) (0.0019)
Weighted average number of shares
Basic (in thousands) 98,987 98,987 98,987
Diluted (in thousands) 98,987 98,987 98,987


(Canadian dollars in thousands)
--
Fiscal year
--
QE March 31 QE Dec 31
Restated Previous Restated Previous
--
Revenue
Defence & Aerospace $ 2,117 $ 2,117 $ 1,701 $ 1,701
CoursePark Learning Services $ 674 $ 1,090 $ 830 $ 692
--
2,791 3,207 2,531 2,393
Direct costs 1,637 1,637 1,429 1,429
--
Gross profit 1,154 1,570 1,102 964
--
Gross profit percentage 41% 49% 44% 40%
Expenses
Sales and marketing 689 689 606 606
General and administration 998 998 818 818
Government assistance (346) (346) (442) (442)
Share-based compensation 131 131 151 151
Finance costs 87 87 87 87
Depreciation and amortization 206 206 204 204
Impairment loss - - - -
--
1,765 1,765 1,424 1,424
--
Earnings (loss) before income taxes (611) (195) (322) (460)
Income taxes (recovery) (127) (15) (16) (54)
--
Net earnings (loss) $ (484) $ (180) $ (306) $ (406)
--

Net earnings (loss) per share
Basic (0.0049) (0.0018) (0.0031) (0.0041)
Diluted (0.0049) (0.0018) (0.0031) (0.0041)
Weighted average number of shares
Basic (in thousands) 98,987 98,987 98,987 98,987
Diluted (in thousands) 98,987 98,987 98,987 98,987
--




The net effect of the year end accounting adjustments for revenue recognition on the Company's
statement of comprehensive income (loss) for the nine months ended June 30, 2013 is a cumulative decrease of $75,162.

Bluedrop Performance Learning Inc.
Statements of Comprehensive Income (Loss)
For the Year Ended September 30, 2012
(With Restated Quarters)



(Canadian dollars in thousands)
-
Fiscal year 2012
-
YE Sept 30 QE June 30
Restated Previous Restated Previous
-
Revenue
Defence & Aerospace $ 7,740 $ 7,740 $ 2,838 $ 2,838
CoursePark Learning Services $ 2,379 $ 2,732 $ 563 $ 511
-
10,119 10,472 3,401 3,349
Direct costs 5,101 5,101 1,689 1,689
-
Gross profit 5,018 5,371 1,712 1,660
-
Gross profit percentage 50% 51% 50% 50%
Expenses
Sales and marketing 1,747 1,747 363 363
General and administration 3,261 3,261 783 783
Government assistance (1,368) (1,368) (103) (103
Share-based compensation 502 502 114 114
Finance costs 210 210 55 55
Depreciation and amortization 569 569 171 171
Impairment loss - - - -
-
4,921 4,921 1,383 1,383
-
Earnings (loss) before income taxes 97 450 329 277
Income taxes (recovery) 116 205 153 139
-
Net earnings (loss) $ (19) $ 245 $ 176 $ 138
-

Net earnings (loss) per share
Basic (0.0002) 0.0026 0.0018 0.0014
Diluted (0.0002) 0.0026 0.0018 0.0014
Weighted average number of shares
Basic (in thousands) 93,492 93,492 98,987 98,987
Diluted (in thousands) 93,492 93,515 98,987 98,987
-

(Canadian dollars in thousands)
--
Fiscal year
--
QE March 31 QE Dec 31
Restated Previous Restated Previous
--
Revenue
Defence & Aerospace $ 1,730 $ 1,730 $ 1,575 $ 1,575
CoursePark Learning Services $ 702 $ 683 $ 446 $ 506
--
2,432 2,413 2,021 2,081
Direct costs 1,319 1,319 1,069 1,069
--
Gross profit 1,113 1,094 952 1,012
--
Gross profit percentage 46% 45% 47% 49%
Expenses
Sales and marketing 385 385 329 329
General and administration 924 924 772 772
Government assistance (181) (181) (721) (721)
Share-based compensation 184 184 - -
Finance costs 51 51 26 26
Depreciation and amortization 140 140 83 83
Impairment loss - - - -
--
1,503 1,503 489 489
--
Earnings (loss) before income taxes (390) (409) 463 523
Income taxes (recovery) (92) (97) 175 186
--
Net earnings (loss) $ (298) $ (312) $ 288 $ 337
--

Net earnings (loss) per share
Basic (0.0031) (0.0033) 0.0035 0.0041
Diluted (0.0031) (0.0033) 0.0035 0.0041
Weighted average number of shares
Basic (in thousands) 94,980 94,980 81,108 81,108
Diluted (in thousands) 94,980 94,980 81,108 81,108
--




The net effect of the year end accounting adjustments in 2013 for revenue recognition on the Company's
statement of comprehensive income (loss) for the year ended September 30, 2012 is a cumulative decrease of $263,397.

Subsequent to the fiscal year ended September 30, 2013, the Company entered into a royalty arrangement whereby it will pay a royalty of up to 1% of the Company's business intellectual property revenues in exchange for a payment of up to $1.0 million. To date, the Company has received an advance of $500,000 on the royalty arrangement.

Commenting on the overall results and progress for the year, founder and CEO Emad Rizkalla said, "We are pleased to see the continuing growth in the business. We are focussed on executing our business plan of driving growth and making investments where considered strategic to the business as a whole. We are also very pleased to have completed our acquisition of Atlantis Systems Corp. on December 31, 2013 and we are well underway on our integration plan. We look forward to Atlantis' contribution to our 2014 financial results."


About Bluedrop

Bluedrop Performance Learning Inc. (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 100 employees, Bluedrop is transforming the workplace globally 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.

Media contact:

Bernie Beckett
Bluedrop Performance Learning Inc.
Berniebeckett@bluedrop.com
Phone: 709-739-4938

To view the press release as a PDF file, please click on the following link:
www.usetdas.com/pr/bluedrop01282014.pdf


Source: Bluedrop Performance Learning Inc. (TSX-V: BPL) www.bluedrop.com
Maximum News Dissemination by FSCwire. www.fscwire.com


Author:
Fred Gautreau
e-mail
Web: www.fscwire.com
Phone: 14037173898

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