Blackline Safety posts record second quarter revenue

Contracted future revenue up 83% and overall revenue up 49% compared to same quarter, prior year

CALGARY, Alberta, June 28, 2018 (GLOBE NEWSWIRE) — Blackline Safety Corp. (TSX Venture:BLN), a leading manufacturer of gas detection and connected safety solutions, announced its best ever second quarter revenue, ended April 30, 2018.

“Our award-winning G7 product line — launched just over six months ago — continues to drive Blackline’s top-line growth,” said Cody Slater, Blackline Safety CEO and Chairman. “Product and service revenue grew significantly, up 49% compared to last year. Even stronger growth was shown in our contracted future service revenues, up 83%, generated by customers adopting G7 through our leasing program.”

“With the recent introduction of our new G7 Insight program, we have expanded our target market to include replacement of ordinary ‘beep-and-flash’ gas detectors currently offered by traditional gas detection suppliers,” said Slater. “Not only has G7 Insight generated considerable interest within our channels, it solves one of the biggest problems for businesses that our competitors have not been able to address — the ongoing need to prove compliance with legislated safety regulations.” He added, “Every business using gas detectors must ensure that all equipment is regularly tested, periodically calibrated and continuously used by their personnel. G7 Insight combines wireless technology, an online compliance dashboard and business analytics software to deliver the world’s first hands-free, comprehensive live view of compliance.”

Looking into the next quarter, Blackline continues its aggressive investment to further its channel expansion and increase the breadth of its connected safety offering. This week’s press release about the new G7 multi-gas pump cartridge for confined spaces and leak checks marks the beginning of a series of announcements about enhanced capabilities that will promote further growth and expand Blackline’s leadership position in the world of connected safety.

Highlights

  • Total revenue of $3.8M, a 49% increase over the prior year’s Q2
  • Product revenue of $1.2M, a 57% increase over the prior year’s Q2
  • Service revenue of $2.5M, a 45% increase over the prior year’s Q2
  • European revenue of $724, a 158% increase over the prior year’s Q2
  • Contracted future service revenue grew to $5.2M, an 83% increase over the prior year’s Q2
  • Cash and short-term investments of $15.5M at end of Q2 FY 2018
  • Added a key refinery customer in the Midwest United States that deployed G7 using Blackline’s leasing program
  • Named Manufacturer of the Year at the 2018 Oil & Gas Awards
  • Commissioned its new $1.1M manufacturing surface-mount technology line that will reduce R&D time-to-market and positively impact product margins beginning in Q4

Financial Highlights

The subsequent values in this release are in thousands, except for percentages and per share data.­­

     
  Quarter Ended April 30 Six-Months Ended April 30
  2018 2017 Change 2018 2017 Change
Revenue $3,749 $2,524 49% $7,552 $5,040 50%
Gross Margin $1,658 $972 71% $3,352 $2,223 51%
Gross Margin Percentage 44% 39% 15% 44% 44% 0%
Net Loss $(2,905) $(1,701) (71)% $(4,510) $(3,766) (20)%
Net Loss excluding stock- based compensation expense $(1,676) $(1,613) (4)% $(3,177) $(3,094) (3)%
Adjusted EBITDA $(104) $(243) 57% $(239) $(434) 45%
Loss per Share $(0.07) $(0.06)   $(0.12) $(0.13)  
             

Key Financial Information

Second quarter revenue was $3,749 compared to $2,524 in the comparable quarter of the prior fiscal year, resulting in an increase of 49% or $1,225.

Product revenue during the second quarter was $1,223, an increase of 57% compared to $779 in the comparable quarter of the prior fiscal year. This increase was driven by shipments of Blackline’s G7c and G7x products in the period, particularly in Europe with an increase of 158% in total revenues as the region continues its strong growth in the current fiscal year.

Service revenue was $2,527, an increase of 45% compared to $1,746 in the same period last year, attributed to new service activations by end customers from the continued solid growth in product sales and adoption of the Blackline Complete leasing program.

Contracted future service revenue, representing the value of future Blackline Complete lease commitments, was $5,236 as at April 30, 2018, an increase of 83% from Q2 FY2017.

Gross margin for the second quarter was $1,658 compared to $972 in the comparable quarter of the prior year, an increase of 71% over the comparable period from the prior year.

Adjusted EBITDA was $(104) for the second quarter compared to $(243) in the comparable quarter of the prior year. The increase in the Adjusted EBITDA in the quarter is attributable to an increase in revenues and gross margin quarter-over-quarter.

Blackline’s unaudited condensed consolidated interim financial statements and management’s discussion and analysis on financial condition and results of operations for the period ended April 30, 2018 are available at www.sedar.com. All results are reported in Canadian dollars. To learn more about Blackline Safety, visit www.blacklinesafety.com and follow Blackline on Twitter @blacklinesafety.

About Blackline Safety: Blackline Safety is a global connected safety technology leader. Providing comprehensive live-monitoring and wireless gas detection, we help teams working in hazardous environments respond to emergencies in real-time and manage efficient evacuations, accounting for everyone’s safety along the way. With millions invested in technology research and development, Blackline Safety is recognized for quality and innovation. Our talented team of designers and engineers create and manufacture in-house — from wearable technology and personal gas detectors to cloud-hosted infrastructure and web-based interfaces for global industry. We deliver the world’s first turn-key, work-anywhere connected safety monitoring solution with gas detection, 3G wireless, satellite communications, two-way speakerphone, employee messaging and live monitoring to meet the demanding safety challenges of organizations in over 200 countries. For more information, visit www.BlacklineSafety.com.

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.

Cody Slater, CEO
cslater@blacklinesafety.com

Blackline Safety Corp.
Unit 101, 1215 13 Street SE
Calgary, AB Canada T2G 3J4
Telephone: +1 403 451 0327
Fax: +1 403 451 9981
www.BlacklineSafety.com

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