Prodigy Ventures Inc. Announces Leadership Change, Q4 Profit Growth
(TSXV-PGV)
TORONTO, April 8, 2021 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced its financial results for the three months and year ended December 31, 2020.
Effective today, Tom Beckerman is assuming the role of CEO in addition to his role as Executive Chairman. Tom Beckerman is the Founder and former CEO of Prodigy. Tom is a seasoned technology veteran, with over 35 years of experience, and has led seven prior technology startups. He has created unique technologies and worked with Fortune 1000 companies. Mr. Beckerman holds the ICD.D designation from the Institute of Corporate Directors, an MBA in Finance from the University of Chicago Booth School of Business, as well as a patent in secure communications technology.
In addition to stepping down as CEO, Jeff Watts has resigned from the Prodigy Board, but will remain with Prodigy as a Special Advisor, working on the CEO transition and special projects. When Jeff joined Prodigy, he gave the Company a three to five year commitment before phasing into retirement, and he has fulfilled that commitment. The Board would like to thank Jeff for his many contributions to the Company's growth and success since joining in 2016. As CEO, he successfully navigated the Company through the COVID pandemic and aligned the Company for future success. Tom Beckerman stated, "I greatly appreciate Jeff's contribution and commitment, and I look forward to working with him in this new capacity."
Full Year 2020 Financial Results
- Revenue for the year ended December 31, 2020 totalled $15,968,507 as compared to $20,330,350 for the year ended December 31, 2019, a decrease of 21%.
- Gross profit for the year ended December 31, 2020 of $4,523,923 as compared to $5,641,723 for the year ended December 31, 2019, a decrease of 20%.
- Operating Expenses for the year ended December 31, 2020 of $3,772,589 as compared to $5,149,103 for the year ended December 31, 2019, a decrease of 27%.
- Net Income for the year ended December 31, 2020 totalled $524,774 as compared to $343,311 for the year ended December 31, 2019, an increase of 53%.
- Adjusted EBITDA for the year ended December 31, 2020 totalled $1,094,553 as compared to $750,556 for the year ended December 31, 2019, an increase of 46%.
- The Company had working capital of $2,715,694 as of December 31, 2020 compared to $2,728,512 as of December 31, 2019.
Fourth Quarter 2020 Financial Results
- Revenue for the three months ended December 31, 2020 totalled $3,603,183 as compared to $4,999,457 for the three months ended December 31, 2019, a decrease of 28%.
- Gross profit for the three months ended December 31, 2020 of $1,048,504 as compared to $1,242,574 for the three months ended December 31, 2019, a decrease of 16%.
- Operating Expenses for the three months ended December 31, 2020 of $629,120 as compared to $1,299,837 for the three months ended December 31, 2019, a decrease of 52%.
- Net Income for the three months ended December 31, 2020 totalled $309,540 as compared to a loss of $49,145 for the three months ended December 31, 2019.
- Adjusted EBITDA for the three months ended December 31, 2020 totalled $532,789 as compared to $18,507 for the three months ended December 31, 2019.
Three months ended | Year ended | ||||
2020 | 2019 | 2020 | 2019 | ||
$ | $ | $ | $ | ||
Revenue | 3,603,183 | 4,999,457 | 15,968,507 | 20,330,350 | |
Gross Profit | 1,048,504 | 1,242,574 | 4,523,923 | 5,641,723 | |
Expenses | 629,120 | 1,299,837 | 3,772,589 | 5,149,103 | |
Net and comprehensive income (loss) for the period | 309,540 | (49,145) | 524,774 | 343,311 | |
Net income (loss) per share – basic and diluted | 0.00 | (0.00) | 0.00 | 0.00 | |
Adjusted EBITDA(1) | 532,789 | 18,507 | 1,094,553 | 750,556 | |
(1) | Adjusted EBITDA is a non-GAAP financial measure, which is defined as earnings before income tax expense, finance meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used in substitute for measures | ||||
(2) | For further information regarding non-GAAP financial measures please see the Company's Management's Discussion | ||||
The complete audited financial statements and associated Management's Discussion and Analysis are available under the Company's profile at www.sedar.com or the Company's website at www.prodigy.ventures.
"Prodigy is successfully controlling costs as it navigates the challenges of the COVID-19 economy." said Tom Beckerman, Prodigy's Chairman and CEO. "The Company has improved its year over year quarterly EBITDA performance, is in a strong cash position, and continues to deliver its pipeline of work without interruption."
COVID-19 UPDATE
Prodigy continues to carefully monitor and assess the evolving situation related to COVID-19 and the potential impact to its business, employees and customers. Although the impact to the future demand for the Company's services remains unknown, the Company has a continuing pipeline of work which is being delivered remotely without interruption. We believe the Company is well positioned to absorb economic impacts and maintain its long-term viability.
About Prodigy Ventures Inc.
Prodigy delivers innovation. The Company develops software and services for clients with emerging technologies focused on digital transformation, identity, and payments. These services include strategy, architecture, design, project management, development, cloud migration, and quality engineering. These professional services are delivered in a variety of model ranging from turnkey projects, to managed services, to staff augmentation. In addition, Prodigy delivers digital identity innovation to enterprise clients with its IDVerifactTM platform. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards: Deloitte's Fast 50 Canada and Fast 500 North America (2016, 2017, 2018), Branham 300 (2017, 2018), Growth List (2018, 2019 and 2020), Canada's Top Growing Companies (2019 and 2020).
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward looking statements in this press release include statements regarding the impact of COVID-19 on the Company's business. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the year ended December 31, 2020, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Non-GAAP Financial Measures
Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Certain financial measures in this press release are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze operating performance. These non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Except as otherwise indicated, these non-GAAP measures are calculated and disclosed on a consistent basis from period to period.
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.
SOURCE Prodigy Ventures Inc.
