MISSISSAUGA, ON, March 1, 2021 /CNW/ -Pioneering Technology Corp. (TSXV: PTE) ("Pioneering" or the "Company"), a technology company and North America's leader in cooking fire prevention technology and products reports its unaudited financial results for the first quarter ended December 31, 2020. Pioneering's unaudited condensed interim financial statements and MD&A are available on SEDAR (www.sedar.com).
Revenue was $1,106,079 versus $2,201,185 for the same period year ago.
Expenses in Q1 2021 were $1,082,463 versus $813,382 in Q1 2020.
Net income for the quarter was ($673,435) versus $324,733 in Q1 2020.
Adjusted EBITDA was ($552,709) versus Adjusted EBITDA of $413,801 a year ago.
Gross margins declined due to US tariffs and inventory accounting consequences of supplier price increases.
Balance sheet remains strong with approximately $1.5M in cash and $4.0M in accounts receivables & inventory.
The Company lost $0.01 per share in Q1.
The COVID-19 pandemic continues to affect the timing of shipments and the Company's financial results. Similarly, U.S. tariffs have adversely affected gross margins over the past four quarters. However, given the prospect of widespread vaccinations in 2021 in the Company's primary market, and an internal strategic plan focused on addressing these challenges while also managing expenses and creating new opportunities means that Pioneering believes that it is well positioned to overcome these challenges. The Company believes that its current plan will help position it for future growth as its customers' activity in the United States resumes. (Please see Pioneering's MD&A for more detail).
Selected Financial Highlights for the First Quarter ended December 31, 2020 and 2019
Net Income (Loss)
Tariff Adjusted EBITDA(1)
Adjusted EBITDA & Tariff Adjusted EBITDA are non-IFRS measures. Please refer to "Non-IFRS Measures" at end of this press release.
Pioneering CEO Kevin Callahan said of the results, "Despite some setbacks over the past three quarters due to COVID-19, we remain confidant that we will come out of this difficult stretch stronger than ever. We continue to focus on activities that will help drive future top line growth, while taking proactive steps to manage expenses, pricing, cost of goods and gross profit. We are currently executing on a plan to address some of the challenges we have recently been presented with to regain our upward trajectory."
About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "energy smart" technology company and North America's leader in innovative cooking fire prevention technologies and products. Our mission is simple: To help save lives and property from the number one cause of household fire – cooking fires. We do this by engineering and bringing to market energy-smart solutions that make consumer appliances safer, smarter, and more efficient. Our patented cooking-fire prevention products address the multi-billion-dollar problem of cooking fires. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America. Pioneering's temperature limiting control (TLC) technology is now installed in over 300,000 multi-residential housing units across North America without a single cooking fire being reported, delivering peace of mind and a solid return on investment for its customers. Pioneering's proprietary cooking fire prevention solutions include Safe-T-element, SmartBurner, RangeMinder & Safe-T-sensor and are suitable for the majority of the more than 140 million stoves/ranges and over 140 million microwave ovens in use throughout North America. For more info, go to www.pioneeringtech.com.
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in Pioneering's target markets, the demand for Pioneering's products, the availability of funding and the efficacy of Pioneering's technology, governmental regulation and the impact of the COVID-19 pandemic. These forward- looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering's expectations and projections.
Adjusted EBITDA is a measure not recognized under International Financial Reporting Standards ("IFRS"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in general and administration expense, fair value movement – derivative liability and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standard meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com). For a reconciliation of Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering's management's discussion and analysis.
Tariff Adjusted EBITDA, defined as Adjusted EBITDA adjusted for tariff and tariff related costs, is used by management to measure operating performance of the Company and is a supplement to our unaudited condensed interim financial statements presented in accordance with IFRS. Tariff Adjusted EBITDA is a helpful measure of operating performance, similar to Adjusted EBITDA, enabling management and investors to gain a clearer understanding of the underlying financial performance of the Company without the impact of U.S. Section 301 tariffs and related costs. While management considers Tariff Adjusted EBITDA a meaningful measure for assessing the underlying financial performance of the Company, Tariff Adjusted EBITDA is a non-IFRS measure and does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Readers are cautioned that Tariff Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering's Tariff Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com). For a reconciliation of Tariff Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering's management's discussion and analysis.
Neither the TSXV nor its Regulation Services Provider (as that term is defined under the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pioneering Technology Corp.
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