UrtheCast Reports 2014 Fourth Quarter And Year-end Financial Results
- First Revenue In Company History
- Working Capital Improved to $22M
- Test Imagery Released
VANCOUVER, March 23, 2015 | UrtheCast Corp. (TSX:UR) (“UrtheCast” or the “Company”), a technology company that is developing the world’s first Ultra HD video platform of Earth from space, today announces financial results for the three and twelve months ended December 31, 2014. The Company reported a comprehensive income of $6.2 million in the quarter as compared to a loss of $4.8 million in the comparative year’s quarter. The Company’s comprehensive loss in 2014 was $5.7 million, compared to $19.2 million in the previous year. UrtheCast’s working capital position increased from $4.8 million at September 30, 2014 to $21.8 million at year-end, an improvement of $17.0 million, with a cash balance of $11.4 million.
Recent highlights include:
- Initial Revenue Recognition
- UrtheCast recognized $3.9 million in revenue in the fourth quarter, which is primarily from the data and value-added engineering services contract that was previously announced.
- Business Interruption Insurance Payment
- UrtheCast was awarded an insurance claim of up to $11.5 million, of which $7.75 million was collected during the fourth quarter. The remaining funds will be accrued at $750,000 per month, up to May 2015, or whenever the High-Resolution Camera (“HRC”) achieves Initial Operating Capability (“IOC”).
- Bi-Axial Pointing Platform (“BPP”) & HRC Update
- The cables and software updates needed to repair the BPP have now been installed. We are now in the process of testing and characterizing the BPP and continuing with our commissioning phase for the HRC. Although a lot of work remains ahead to fully commission the BPP and the HRC and get to IOC, we are satisfied with the test results we have attained so far. We have released a sample HRC video from our initial testing on our website at www.urthecast.com/testing. This test video does not yet have the final image quality and resolution as the BPP performance and our ground processing algorithms will continue to improve as we progress through commissioning.
- Letitia “Tish” Long, Former Director Of The National Geospatial-Intelligence Agency Appointed to the Board
- Letitia “Tish” Long, former director of the U.S. National Geospatial-Intelligence Agency, joined our Board of Directors. Ms. Long most recently served as the fifth Director of the National Geospatial-Intelligence Agency (NGA). Prior to her appointment to the NGA, Ms. Long served as the Deputy Director of the Defense Intelligence Agency (DIA) from 2006 until 2010. She was also named one of the Most Powerful Women in the D.C. Metro area by Washingtonian magazine in 2013.
- Formation of an Advisory Board To Provide Strategic Guidance In Space And Technology
- UrtheCast announced an Advisory Board consisting of Peter Marino, Michele Weslander Quaid, Jeffrey Manber, and Sunil Sharma — all leading executives currently with, or from organizations including Google Inc., NanoRacks LLC, Lockheed Electronics, and Extreme Venture Partners. This group of senior executives will assist UrtheCast as the Company continues to democratize Earth Observation by revolutionizing geospatial ‘big data’ analytics.
- MRC Update
- The Medium-Resolution Camera (“MRC”) is generating initial revenue. The customer base and sales funnel continues to grow and we actively engaged in a number of pilot projects from customers around the world. The key near-term driver for MRC revenue in 2015 will be the northern hemisphere growing cycle.
- Website Development
- The web platform is now in a private beta phase. Part of the core of the UrtheCast vision, this platform will enable the democratization and understanding of how the world changes. New features, including ordering and publishing services, are planned for launch mid-2015, with continued, routine releases of new functionality and datasets thereafter.
Our cash balance at December 31, 2014 was $11.4 million. We expect to receive the balance of the 20% cash advance, US$10 million, for the US$65 million contract and the first milestone payment of US$5.6 million in the first half of 2015. In addition, we expect to receive a further payment under our business interruption insurance policy of up to $3.75 million, plus the possibility of an additional amount for the costs to implement the technical solution. These expected proceeds are expected to fund our current level of operations and capital commitments over the next twelve months.
“I am extremely pleased with the financial results of the quarter”, explained Scott Larson, UrtheCast’s Chief Executive Officer. “The improvement of our cash and working capital positions, combined with the technical progress that we have made, puts the Company in an excellent position for growth in 2015.”
The full financial statements and accompanying Management’s Discussion & Analysis are available on UrtheCast’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at its website www.sedar.com, and on UrtheCast’s website at www.urthecast.com.
The Company will host a conference call regarding its corporate earnings for the three and nine months ended December 31, 2014, at 8:30 a.m. ET (5:30 a.m. PT) on Monday, March 23, 2015. The live conference call will be available by calling toll-free at 866-696-5910, or by toll call at 416-340-2217. The participant pass code is 2427706.
An archived version of the conference call will be made available on the Company’s investor webcast page following the live conference call.
About UrtheCast Corp.
UrtheCast Corp. is a Vancouver-based technology company that is developing the world’s first Ultra HD video feed of Earth, streamed from space in full color. Working with renowned aerospace partners from across the globe, UrtheCast has built, launched, installed, and will soon operate its Ultra HD video camera, Iris, on the ISS alongside its Medium Resolution Camera (“MRC”) which reached Initial Operation Capability (“IOC”) in 2014. Video and still image data captured by the cameras will be downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to partners and customers. UrtheCast’s cameras will provide Ultra HD video and still imagery of Earth that will allow for monitoring of the environment, humanitarian relief, social events, agricultural land, etc. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker ‘UR’.
For more information visit UrtheCast’s website at www.urthecast.com.
Forward Looking Information
This release contains certain information which, as presented, constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions and includes, but is not limited to, statements about the commissioning of the cameras and the BPP, plans to operate camera components on, and stream video footage from, the ISS, proposed image and video product offerings, expectations regarding the commencement of commercial operations, expected partners and customers to distribute such products and expected costs and revenues. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of UrtheCast to control or predict, and which may cause UrtheCast’s actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, damage which may have occurred to the cameras during launch or installation, unexpected changes in Russian or Canadian government policies, technology changes, reliance on key personnel, the potential for conflicts of interest among certain officers, directors or promoters with certain other projects, competition, risks related to the business activities of Longford Energy Inc. (now UrtheCast) prior to the reverse take-over transaction with Earth Video Camera Inc., as well as those factors discussed in the Company’s annual information form dated March 20, 2015, (the “AIF”) and the Company’s short form base shelf prospectus dated April 7, 2014 (the “Prospectus”) which are available under UrtheCast’s SEDAR profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the AIF and Prospectus, and as otherwise disclosed from time to time on UrtheCast’s SEDAR profile.
Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and UrtheCast undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.
For further information:
Issa Nakhleh, CFO
(778) 331-7827 Direct