GetSwift Reports Fiscal First Quarter 2022 Financial Results
GetSwift Technologies Limited ("GetSwift" or the "Corporation"; NEO: GSW), a leading provider of last mile SaaS logistics technology and services, has reported its financial and operational results for the fiscal first quarter of 2022 which ended September 30, 2021.
GetSwift Technologies Limited ("GetSwift" or the "Corporation"; NEO: “GSW”), a leading provider of last mile SaaS logistics technology and services, has reported its financial and operational results for the fiscal first quarter of 2022 which ended September 30, 2021.
Key First Quarter and Subsequent Operational Highlights
- 64% quarter-over-quarter increase in revenue from customer contracts
- Decrease of 17% in operating costs from the prior quarter
- Signed a partnership agreement with Uber Technologies, Inc.
- Total sales for the quarter of $7.2 million or 20% higher than forecast in the Corporation’s management discussion & analysis for the year ended June 30, 2021
- Executed a settlement deed with no admissions as to liability in the class action suit against the company
Management Commentary
“The first fiscal quarter of 2022 was marked by continued growth, driven by the adoption of our products and services by major businesses that require affordable, scalable, and secure solutions,” said Bane Hunter, CEO of GetSwift.
“We saw a 64% improvement in revenue from customer contracts over the prior quarter, building on 67% growth in the prior quarter, while we continued to reduce operating costs. Total sales for the quarter were $7.2 million or 20% higher than the forecast of $6.0 million. This higher sales figure was driven primarily by higher than anticipated Communication Technology Services (CTS) sales as revenue was pulled ahead from the October to December 2021 period,” Hunter continued.
“The CTS business segment continues to produce revenue growth driven by SaaS software needs in the market. In addition, there has been strong global investment in the connectivity and infrastructure industries, driving solid sales for the Technology Software Services (TSS) business segment,” Hunter explained.
“Availability of workforce continued to be a challenge in the quarter due to the pandemic and economic conditions, including both employee turnover and remote working arrangements resulting in churn in some business segments,” Hunter further explained.
“As a result of an over-performance, the Corporation is expecting a potential proportionate reduction in estimated revenue to be recognized by the Corporation during the current quarter ending December 31, 2021. While the Corporation expects continued revenue growth for such period, management believes it is reasonable to expect that its estimate of revenue for the second fiscal quarter of 2022 to be reduced by an amount equal to (or possibly greater than) the over-performance achieved in the first quarter (such estimate equaling an aggregate revenue projection of $13.8 million (or less) as compared to $15 million as forecasted in the Corporation’s Management Discussion and Analysis for the year ended June 30, 2021). The Corporation expects that the subsequent third quarter ending in March 2022 will see an increase over the second quarter in revenue.
“On the aggregate, the Corporation expects to exceed during fiscal 2022 the revenues recognized in fiscal 2021, but the timing and recognition throughout the next several quarters remain fluid as demand and resource availability exhibit their short-term effects.
“The Corporation is also currently considering various financing opportunities to meet the near term cashflow and growth initiatives,” Bane Hunter, CEO of GetSwift concluded.
Preliminary estimated financial results and financial outlook set forth above are as of the date of the financial statements of the Corporation for the interim period ended September 30, 2021 and related management’s discussion and analysis and are subject to the completion of the Corporation’s financial closing procedures for the applicable periods in fiscal 2022. This data has been prepared by management, and is the responsibility of the Corporation’s management and audit committee. The Corporation’s independent auditors have not expressed an opinion or any other form of assurance with respect thereto. Such estimates are preliminary and subject to a number of risks and the Corporation’s actual results of operations, which could differ materially from these estimates. See “Disclaimer Regarding Financial Outlook” below for additional details.
First Quarter 2022 Financial Results
Revenue for the first quarter of 2022 totaled $7.2 million. This compares to revenue of $7.5 million for the first quarter of fiscal 2021.
Total operating expenses for the first quarter of 2022 were $8.9 million as compared to total operating expenses of $14.0 million for the first quarter of fiscal 2021.
Total comprehensive loss for the first quarter of 2022 was $1.9 million, as compared to a total comprehensive loss of $2.2 million for the first quarter of fiscal 2021.
Cash used in operating activities for the three months ending September 30, 2021 totaled $4.9 million compared to $12.2 million in the first quarter of fiscal 2021.
The information provided in this news release should be read in conjunction with the financial statements of the Corporation for the interim period ended September 30, 2021 and related management’s discussion and analysis, which are available under the Corporation’s profile on SEDAR at www.sedar.com .
About GetSwift Technologies Limited
Technology to Optimise Global Delivery Logistics
GetSwift is a technology and services company that offers a suite of software products and services focused on business and logistics automation, data management and analysis, communications, information security, and infrastructure optimization and also includes ecommerce and marketplace ordering, workforce management, data analytics and augmentation, business intelligence, route optimization, cash management, task management shift management, asset tracking, real-time alerts, cloud communications, and communications infrastructure (collectively, the “GetSwift Offering”). The GetSwift Offering is used by public and private sector clients across industries and jurisdictions for their respective logistics, communications, information security, and infrastructure projects and operations.
GSW is headquartered in New York and its common shares are listed for trading on the NEO Exchange under the symbol “GSW”. Additional information regarding the Corporation is provided in the Corporation’s annual information form for the year ended June 30, 2021, which is available under the Corporation’s profile on SEDAR at www.sedar.com.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Corporation, to the future outlook of the Corporation and anticipated events or results and may include statements regarding the future financial performance of the Corporation. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.
Forward-looking Statements in this press release include statements related to future guidance regarding revenue and other financial forecasts for the remainder of the Corporation’s fiscal year, continued or expected use of the Corporation’s services, and intentions with respect to capital raising transactions. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include, without limitation, continued use of the Corporation’s services, sources of the Corporation’s revenue, the potential for additional tax expenses in future periods relating to historical filings, short- to mid-term expectations regarding the likelihood of the Corporation making capital calls under the Amended LDA Agreement (as defined below), limitations on the ability of the Corporation to leverage the LDA facility in the future, the timing of judgments relating to the civil proceedings in Australia, the incurrence of legal fees in relation to defending the civil proceedings involving Corporation or its subsidiaries, judgments relating to any civil proceedings involving the Corporation or its subsidiaries, the timing of future hearings related to the civil proceedings involving the Corporation or its subsidiaries, compliance with any settlement agreements entered into by the Corporation and the likelihood such agreements will be approved by courts of competent jurisdiction, estimates of the useful lives of assets, provisions for impairment of inventories, the ability of the Corporation to continue as a going-concern, the effect of a change of control on the Corporation’s material contracts, the Corporation’s dependence on key personnel, the Corporation’s ability to achieve or maintain profitability, the ability of clients terminating contracts with the Corporation and the impact thereof, short- to mid-term expectations regarding the sources and quantum of revenue, ongoing costs and obligations of the Corporation and its subsidiaries, the Corporation’s need and ability to obtain additional financing, the Corporation’s ability and intention to develop the GetSwift Offering (as defined below) and other intellectual property, the Corporation’s dependence on the GetSwift Offering to maintain operability and functionality on third-party operating systems and the likelihood of changes to such platforms, the Corporation’s dependence on suppliers and skilled labor, growth-related risks such as capacity constraints and pressure on internal systems and controls, the likelihood of reputational harm to the Corporation and the impact thereof, and the impact of pandemics, including COVID-19, on the Corporation, applicable regulation, and global commerce, and the other risk factors set forth in the Corporation’s management’s discussion and analysis for the interim period ended September 30, 2021 and the Corporation’s annual information form for the year ended June 30, 2021 under the heading "Risk Factors".
The Corporation undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Corporation to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Disclaimer regarding financial outlook.
Revenue estimates and other financial outlook referenced in this news release is provided for the purpose of providing additional information regarding the cyclicality of the Corporation’s revenue and management’s current expectations with respect to revenue derived from contracts with customers in the short and medium term and may not be appropriate for any other purpose. The Corporation currently expects that its final results of operations and other data for fiscal 2022 will be consistent with the estimates set forth above, but such estimates are preliminary and the Corporation’s actual results of operations and other data could differ materially from these estimates due to the completion of its quarterly review procedures, final adjustments, and other developments that may arise between now and the time such consolidated financials statements are released and/or closed out. Readers are cautioned that such forward-looking information and financial outlook is based on management’s current expectations in light of existing market conditions and that such statements are subject to a number of risks described above and in the risk factors set forth in Corporation’s management’s discussion and analysis for the interim period ended September 30, 2021 and the Corporation’s annual information form for the year ended June 30, 2021.
|
GetSwift Technologies Limited Condensed interim consolidated statements of financial position As at September 30, 2021 and June 30, 2021 (In US dollars) |
||
|
September 30 |
June 30 |
|
|
2021 |
2021 |
|
|
$ |
$ |
|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents |
4,693,788 |
7,276,107 |
| Trade and other receivables |
9,470,492 |
5,438,149 |
| Prepaids |
2,609,749 |
2,520,151 |
| Inventories |
7,217,652 |
1,860,062 |
| Total current assets |
23,991,681 |
17,094,469 |
| Non-current assets | ||
| Property, plant and equipment |
3,333,688 |
1,598,650 |
| Deferred tax assets |
35,336 |
35,735 |
| Goodwill and intangible assets |
10,170,776 |
11,140,009 |
| Other non-current assets |
835,780 |
1,137,412 |
| Total non-current assets |
14,375,580 |
13,911,806 |
| Total assets |
38,367,261 |
31,006,275 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade and other payables |
19,052,536 |
11,073,244 |
| Contract liabilities |
62,668 |
79,481 |
| Warranty provisions |
512,288 |
557,540 |
| Employee benefit obligations |
43,067 |
65,997 |
| Lease and other current liabilities |
558,507 |
457,246 |
| Total current liabilities |
20,229,066 |
12,233,508 |
| Non-current liabilities | ||
| Deferred tax liabilities |
760,148 |
858,220 |
| Warranty provisions |
235,783 |
283,680 |
| Lease non-current liabilities |
2,014,475 |
612,493 |
| Total non-current liabilities |
3,010,406 |
1,754,393 |
| Total liabilities |
23,239,472 |
13,987,901 |
| EQUITY | ||
| Share capital |
82,332,552 |
82,332,552 |
| Other reserves |
(2,996,339) |
314,409 |
| Accumulated losses |
(68,714,291) |
(69,910,131) |
| Non-controlling interests |
4,505,867 |
4,281,544 |
| Total equity |
15,127,789 |
17,018,374 |
| Total liabilities and equity |
38,367,261 |
31,006,275 |
|
GetSwift Technologies Limited Condensed interim consolidated statements of income (loss) and other comprehensive loss For the three months ended September 30, 2021 and 2020 (In US dollars) |
||
|
Three months ended September 30 |
||
|
2021 |
2020 * |
|
|
$ |
$ |
|
| Revenue from contracts with customers |
7,211,205 |
7,510,952 |
| Total revenue |
7,211,205 |
7,510,952 |
| General and administrative expenses |
(3,060,744) |
(7,179,486) |
| Employee benefits expenses |
(1,721,773) |
(2,230,586) |
| Operating expenses |
(4,090,301) |
(4,521,350) |
| Share-based payment expenses |
(16,837) |
(25,032) |
| Total expenses |
(8,889,655) |
(13,956,454) |
| Other income |
97,169 |
239,096 |
| Other gains(losses) |
2,995,366 |
(1,524,084) |
| Income/(loss) before income tax |
1,414,085 |
(7,730,490) |
| Income tax benefit/(expense) |
6,078 |
(117,671) |
| Income/(loss) for the period |
1,420,163 |
(7,848,161) |
| Other comprehensive income | ||
| Items that may be reclassified to profit or loss: | ||
| Exchange differences on translation of foreign operations |
(3,327,585) |
5,633,863 |
| Total comprehensive loss for the period |
(1,907,422) |
(2,214,298) |
| Total comprehensive loss for the year is attributable to: | ||
| Owners of GetSwift Technologies Limited |
(2,131,745) |
(2,412,524) |
| Non-controlling interests |
224,323 |
198,226 |
|
(1,907,422) |
(2,214,298) |
|
| Earnings/(loss) per share for income (loss) attributable to the ordinary equity holders of the company: |
||
| Basic/diluted earnings/(loss) per share** |
0.05 |
(0.26) |
| *Comparative figures will differ to previously issued financial statements due to the change in reporting currency | ||
| **Reflects the retrospective application of the 7:1 exchanage ratio |
|
GetSwift Technologies Limited Condensed interim consolidated statements of cash flows For the three months ended September 30, 2021 and 2020 (In US dollars) |
||
|
Three months ended |
Three months ended |
|
|
$ |
$ |
|
| Cash flows from operating activities | ||
| Receipts from customers (inclusive of GST) |
4,304,069 |
4,390,095 |
| Payments to suppliers and employees (inclusive of GST) |
(8,796,911) |
(16,415,895) |
| R&D tax incentive received |
- |
157,882 |
| Income taxes paid |
(355,760) |
(355,448) |
| Interest paid |
(26,538) |
(6,066) |
| Interest received |
4,756 |
54,077 |
| Net cash (outflow) from operating activities |
(4,870,384) |
(12,175,355) |
| Cash flows from investing activities | ||
| Payments for property, plant and equipment |
(322,013) |
(93,712) |
| Net cash (outflow) from investing activities |
(322,013) |
(93,712) |
| Cash flows from financing activities | ||
| Proceeds from issues of shares |
- |
489,904 |
| Proceeds from borrowings |
- |
758,838 |
| Financing costs for LDA facility |
- |
(300,000) |
| Restrinction for letter of credit |
- |
(1,559,568) |
| Proceeds from line of credit |
3,225,680 |
2,106,943 |
| Repayment of line of credit |
(366,738) |
(980,221) |
| Principal elements of lease payments |
(293,440) |
(46,358) |
| Net cash inflow from financing activities |
2,565,502 |
469,538 |
| Net (decrease) in cash and cash equivalents |
(2,626,895) |
(11,799,529) |
| Cash and cash equivalents at the beginning of the period |
7,276,107 |
24,279,996 |
| Effects of exchange rate changes on cash and cash equivalents |
44,576 |
(975,684) |
| Cash and cash equivalents at end of the period |
4,693,788 |
11,504,783 |
| * Comparative figures will differ to previously issued financial statements due to the change in reporting currency. |
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