Urbanimmersive Announces Its 2019 Audited Financial Results

Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSX VENTURE: UI) (OTC PINK: UBMRF) today announced select audited consolidated financial results and presents business highlights for the fourth quarter and year ended September 30, 2019. The consolidated financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/.

HIGHLIGHTS

• Success in the completion of the integration of Urbanimmersive LLC (‘Tourbuzz’) along with all the realized cost synergies anticipated;
• Gross Merchant Volume (‘GMV’) of $2,535k for Q4-19 while compared to $1,481k for Q4-18, a growth of $1,054k or 71% and a GMV of $10,061k for 2019 compared to $3,477k for 2018, a growth of $6,584k or 189%;
• Revenues of $864k for Q4-19 while compared to $812k for Q4-18, a growth of $52k or 6.4% and revenues of $4,454k for 2019 compared to $2,271k for 2018, a growth of $2,183k or 96%;
• Gross margin (before amortization) of $816k (94.4%) for Q4-19 compared to $273k (33.6%) for Q4-18 (increase of $543k) and gross margin of $3,378k (75.8%) for 2019 compared to $335k (14.8%) for 2018 (increase of $3,043k);
• EBITDA of $466k for Q4-19 compared to –$285k for Q4-18 (increase of $751k) and EBITDA of $725k for 2019 compared to –$1,366k for 2018 (increase of $2,091k);
• Net income of $746k for Q4-19 compared to a net loss of $1,589k for Q4-18 (improvement of $2,335k) and net income of $1,942k for 2019 compared to a net loss of $2,766k for 2018 (improvement of $4,708k);
• Cashflows related to operating activities of $437k for Q4-19 compared to –$243k for Q4-18 (improvement of $680k) and cashflows related to operating activities of $464k for 2019 compared to –$1,325k for 2018 (improvement of $1,789k);
• Conversion of all merchants using low-margin services to new high margin platform feature;
• Renewal of terms and conditions of the US term loan in compliance with its required financial covenants and reclassed as long-term debt;
• Launch of a new corporate website with enriched investors section;

SELECTED CONSOLIDATED FINANCIAL INFORMATION 

	Three-month period endedSept. 30, 2019	Three-month period endedSept. 30, 2018		Twelve-month period endedSept. 30, 2019		Twelve-month period endedSept. 30, 2018
	In thousands $	In thousands $		In thousands $		In thousands $
Gross Merchant Volume (GMV) *	2,535	1,481		10,061		3,477
Revenues	864	812		4,4954		2,270
Direct charges	48	539		1,076		1,936
Amortization	132	58		494		87
Gross margin (before amortization and loss on disposal of assets)	816	273		3,378		335
Operating expenses	363	934		2,666		2,076
EBITDA**	466	(285)		725		(1,366)
Other expenses (revenues)	51	870		(1,313)		938
Net income (loss)	746	(1,589)		1,942		(2,766)
Basic net income (loss) per share	0.01	(0.040)		0.03		(0.04)

* GMV represents the value of all transactions performed by merchants using Urbanimmersive’s business solutions for invoicing and/or collecting payments for their services.

** Exclude Tourbuzz acquisition costs of $13k for the 3 and 12-months periods ended September 30, 2019 and respectively $331k and $346k for the 3 and 12-months periods ended September 30, 2018.

ACHIEVEMENTS

"This other consecutive quarter of strong financial performance once again demonstrates the profitability and sustainability of the Company following the successful integration of Tourbuzz's activities and allows us to tackle the low season with serenity and a financial strength never achieved before. This is particularly satisfying to realize that this improvement in our financial situation is driven by many various financial metrics including revenues, gross margin, operating income, net income, cash flow from operating activities and working capital. In addition, the ongoing refinancing process of our term loan should provide us with greater financial flexibility," said Ghislain Lemire, President and CEO of Urbanimmersive.

"This year, we have put a lot of effort into integrating, streamlining and harmonizing our technological, human and financial activities following our major acquisition of Tourbuzz in order to provide ourselves with the means to invest more in the growth of our activities and we are very proud of the results achieved today," said Ghislain Lemire, President and CEO of Urbanimmersive. "We are also proud of the competent and tightly integrated team we have put in place this year. Now that the integration of our activities is behind us, team’s priority in the coming months will be to optimize the customer experience through increased sales and marketing support and the launch of new innovative business solutions driven by the core technologies developed by Urbanimmersive. We also intend to continue to pursue strategic accretive acquisitions that will allow us to enhance our product offering and accelerate our growth," said Ghislain Lemire, President and Chief Executive Officer of Urbanimmersive.

Options grant and shares issuanceThe Company also announces that 1,250,000 share purchase options have been granted to employees, management and members of the Board of directors pursuant to the terms of its share option plan (the “Plan”). These options are exercisable at $0.06 per share and expire on January 13, 2025. The Plan provides that options may be exercised on a cumulative basis over a period of three years from the date they are granted, as to one-third every year. The Company has also issued 315,000 shares at a price of $0.06 to Officers as bonus and which is subject to a 4-month hold period from the date of issuance.

Update on the refinancing of the US term loan

The Company just recently signed a financing offer with a financial institution to mainly refinance its US term loan with a current balance of Can$ 1.1 million as well as its ongoing operations. Terms of this 2-year loan include a 5-year amortization period, a variable interest rate of prime rate +5.0% or 7.52% (while compared to 11.75% for the existing loan) and similar guarantees. This financing offer also includes a $900k term loan with a 20-year amortization period to acquire a commercial condominium on the South Shore of Montreal in order to relocate Company’s head office by May 2020. Closing of this financing is expected before the end of this month.

TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.

Investor Conference CallUI will be hosting a conference call to discuss 2019 financial results and answer questions at 4:00 p.m. (ET) on January 14, 2020. To participate in the conference call, please dial toll free number [phone] or international number [phone] five to 10 minutes before the call is scheduled to begin. A replay will be available for 7 days from January 14, 2020 7:00 p.m. to January 21, 2020 7:00 p.m. The number to hear the conference replay are [phone] or [phone]. Conference ID for the conference call and the replay is 7582201.

About Urbanimmersive

Urbanimmersive is the leading SaaS business management solution providing mission critical solutions to visual content providers serving the real estate residential, commercial, construction and local businesses markets. The Urbanimmersive platform helps customers increase their operational productivity while helping in delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems and interactive visual technology solutions. Urbanimmersive’s core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline cost-effective alternatives to traditional 3D engines for the creation of immersive digital environments. The 3D emulator enables to quickly create immersive environments of small existing and future spaces like houses to extremely large environments like stadiums, to which clients can interpolate multiple layers of interactive and contextualized set of data for many purposes such as for online marketing, building asset management and offsite training and inspection. The Company offers its advance features on a pay-per-use transactional business model and licenses its immersive technology in other market segments.

Caution of Forward-Looking StatementsCertain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.

For more information, please contact:

Urbanimmersive Inc. Ghislain LemirePresident & CEO514-394-7820 X [e-mail]

Simon Bédard, CA, CPA, CFA, MBA Chief Financial Officer 514 394-7820 X [e-mail]