GetSwift Reports Fiscal Third Quarter 2021 Financial Results
GetSwift Technologies Limited ("GetSwift" or the "Corporation"; NEO: “GSW”), a leading provider of last mile SaaS logistics technology and services, has reported its financial and operational results for the fiscal third quarter ended March 31, 2021.
Key Third Quarter and Subsequent Operational Highlights
- Introduced next-generation On-Demand Dispatching algorithm to help clients connect orders with drivers more efficiently by automatically batching a pair of deliveries with just one driver whenever possible, minimizing the number of drivers needed and maximizing vehicle capacity.
- Partnered with elGrocer, the UAE’s multi-award winning and industry-recognized grocery delivery organization with over 300 stores across all seven Emirates, to provide a full suite of services through its SaaS platform including fleet management, route-optimization, and other services to ensure fast, efficient delivery to customers across the UAE.
- Chosen by Famous Dave’s, an award-winning, internationally recognized barbeque restaurant chain operating 146 restaurants in 31 states, Canada, and the United Arab Emirates, to provide a full suite of last mile delivery logistics services through its SaaS platform.
- Redomiciled from Australia to Canada, and its common shares were approved for listing with the NEO Exchange (“NEO”) under the symbol “GSW” to increase visibility in the marketplace, move onto a senior stock exchange to improve stock liquidity, further broaden its institutional shareholder base, and enhance long-term shareholder value.
Management Commentary
“The third quarter of 2021 was marked by ongoing support for the adoption of our technology by major businesses that require affordable, scalable, secure last mile delivery management,” said Bane Hunter, CEO of GetSwift. “The flexibility of our solution was illustrated by two significant partnerships during the quarter, including a countrywide grocery delivery service in the UAE and an international barbecue restaurant chain delivering meals to customers, both highlighting the accelerating ‘digital-first’ trend in the food category.
Our technology capabilities continued to evolve during the quarter after identifying a key efficiency improvement for dispatching deliveries. Our next generation On-Demand Dispatching can automatically batch a pair of deliveries with just one driver whenever possible when orders or jobs are coming in on the fly. This complements our five additional dispatching methods, giving owners multiple options to choose the right dispatch for their business. We look forward to announcing additional technology improvements in the coming months.
Operationally, the quarter marked our corporate transition from Australia to Canada and listing on the NEO Exchange to better align with our New York headquarters. In our first few months of trading, we have found NEO to be a perfect fit for us. Our customer acquisition and technology achievements have persisted through the year despite the ongoing class action litigation challenges to our company. After completing mediation, we were unable to reach any settlement and are now preparing for trial and looking forward to presenting our case.
Revenue for the quarter was supported by an increasing level of subscriptions. We are disappointed that certain projects and initiatives we have been investing in and had hoped would materialize for this quarter have been delayed, with that said although there are no guarantees, the team is working hard to deliver them in 2021. Our current cash position will support current working capital needs as we continue to focus on cost reductions to streamline our business and explore additional financing opportunities to support our ongoing growth.
Looking ahead to the remainder of fiscal year 2021, we expect to meet our goals for the year and believe the opportunity for our company has never been greater. Although we have seen delays, our momentum will continue as we improve our cloud-based SaaS logistics services in response to our customers’ needs, and diversify our growing base of users as more companies transition to the demands of the digital economy,” concluded Bane.
Third Quarter 2021 Financial Results
Revenue for the third quarter of 2021 totaled $2.7 million. This compares to revenues of $6.1 for the third quarter of 2020. The decrease in revenue was primarily due to expected project initiations.
Total operating expenses for the third quarter of 2021 were $0.9 million as compared to total operating expenses of $4.5 million for the same period in 2020.
Cash used in operating activities for the three months ending March 31, 2021 totaled $9.7 million compared to $11.7 million in the third quarter of 2020, a decrease of $2.0 million.
Net loss for the third quarter of 2021 was $3.0 million, as compared to a net income of $2.1 million, in the third quarter of 2020.
Cash totaled $11.8 million at March 31, 2021, as compared to $7.4 million at December 31, 2020.
About GetSwift Technologies Limited
Technology to Optimise Global Delivery Logistics
GetSwift is a technology and services company that offers a suite of software products and services focused on business and logistics automation, data management and analysis, communications, information security, and infrastructure optimization and also includes ecommerce and marketplace ordering, workforce management, data analytics and augmentation, business intelligence, route optimization, cash management, task management shift management, asset tracking, real-time alerts, cloud communications, and communications infrastructure (collectively, the “GetSwift Offering”). The GetSwift Offering is used by public and private sector clients across industries and jurisdictions for their respective logistics, communications, information security, and infrastructure projects and operations.
GSW is headquartered in New York and its common shares are listed for trading on the NEO Exchange under the symbol “GSW”. The Corporation has filed and obtained a receipt for the Prospectus. A copy of the Prospectus can be obtained under GetSwift's corporate profile on SEDAR at www.sedar.com.
For further background, please visit www.getswift.co.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Corporation, to the future outlook of the Corporation and anticipated events or results and may include statements regarding the future financial performance of the Corporation. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Forward looking Statements in this press release include statements related to the class action proceeding, the ASIC proceeding, and the anticipated timing of hearings related to, or the outcome of, such proceedings or any negotiations or discussions related thereto. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include, without limitation, the availability and scheduling of the Federal Court of Australia and other parties involved in the Australian civil legal proceedings, the withdrawal of claims related to, or the settlement of, the class action or the ASIC proceeding, the delivery of judgments related to the class action or the ASIC proceeding that are adverse to the interests of the Corporation, and the other risk factors set forth in the Prospectus under the heading "Risk Factors". The Corporation undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Corporation to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
GetSwift Technologies Limited Condensed interim consolidated statement of financial position As of 31 March 2021 |
|||||
Notes |
31 March |
30 June |
|||
2021 |
2020 |
||||
$ |
$ |
||||
| ASSETS |
|
||||
| Current assets |
|
||||
| Cash and cash equivalents |
|
11,843,420 |
|
23,300,583 |
|
| Trade and other receivables |
|
3,780,914 |
|
10,504,507 |
|
| Prepaids |
|
1,801,805 |
|
2,267,718 |
|
| Inventories |
|
1,674,642 |
|
1,660,744 |
|
| Other current assets |
|
424,955 |
|
- |
|
| Total current assets |
|
19,525,736 |
|
37,733,552 |
|
| Non-current assets |
|
||||
| Property, plant and equipment |
|
1,360,658 |
|
1,318,721 |
|
| Deferred tax assets |
|
35,133 |
|
32,456 |
|
| Intangible assets |
|
11,900,053 |
|
12,962,869 |
|
| Other non-current assets |
|
95,373 |
|
130,517 |
|
| Total non-current assets |
|
13,391,217 |
|
14,444,563 |
|
| Total assets |
|
32,916,953 |
|
52,178,115 |
|
| LIABILITIES |
|
||||
| Current liabilities |
|
||||
| Trade and other payables |
|
6,709,384 |
|
13,820,894 |
|
| Contract liabilities |
|
74,048 |
|
306,920 |
|
| Warranty provisions |
|
587,191 |
|
275,530 |
|
| Employee benefit obligations |
|
29,824.00 |
|
97,837 |
|
| Other current liabilities |
|
448,549 |
|
573,524 |
|
| Total current liabilities |
|
7,848,996 |
|
15,074,705 |
|
| Non-current liabilities |
|
||||
| Trade and other payables |
|
- |
|
297,972 |
|
| Deferred tax liabilities |
|
932,643 |
|
1,070,663 |
|
| Warranty provisions |
|
309,555 |
|
554,278 |
|
| Employee benefit obligations |
|
- |
|
7,302 |
|
| Other non-current liabilities |
|
330,278 |
|
327,827 |
|
| Total non-current liabilities |
|
1,572,476 |
|
2,258,042 |
|
| Total liabilities |
|
9,421,472 |
|
17,332,747 |
|
| EQUITY |
|
||||
| Share capital | 4(a) |
82,332,552 |
|
79,980,173 |
|
| Other reserves | 4(b) |
1,276,271 |
|
(3,028,701 |
) |
| Accumulated losses |
|
(63,884,649 |
) |
(46,445,098 |
) |
| Non-controlling interests |
|
3,771,307 |
|
4,338,994 |
|
| Total liabilities and equity |
|
32,916,953 |
|
52,178,115 |
|
|
|||||
GetSwift Technologies Limited Condensed interim consolidated statement of loss and other comprehensive income For the three and nine months ended 31 March 2021 and 2020 |
|||||||||
|
|||||||||
|
|||||||||
|
Three months ended 31 March |
Nine months ended 31
|
|||||||
Notes |
2021 |
2020 |
2021 |
2020 |
|||||
$ |
$ |
$ |
$ |
||||||
| Revenue from contracts with customers | 2 |
2,641,807 |
|
5,923,988 |
|
15,433,801 |
|
7,874,951 |
|
| Other income | 3(a) |
33,831 |
|
177,699 |
|
1,225,476 |
|
819,021 |
|
|
|||||||||
|
2,675,638 |
|
6,101,687 |
|
16,659,277 |
|
8,693,972 |
|
|
|
|||||||||
| Other (losses) gains | 3(b) |
581,786 |
|
8,814,696 |
|
(5,284,380 |
) |
8,453,276 |
|
|
|||||||||
| General and administrative expenses | 3(c) |
(3,516,861 |
) |
(5,609,779 |
) |
(14,509,701 |
) |
(12,494,697 |
) |
| Employee benefits expenses | 3(c) |
(1,956,532 |
) |
(2,595,460 |
) |
(6,739,436 |
) |
(5,940,885 |
) |
| Operating expenses | 3(c) |
(860,397 |
) |
(4,547,992 |
) |
(8,138,892 |
) |
(4,547,992 |
) |
| Share-based payment expenses |
|
(24,569 |
) |
(88,642 |
) |
(86,722 |
) |
(1,177,179 |
) |
|
(3,100,935 |
) |
2,074,510 |
|
(18,099,854 |
) |
(7,013,505 |
) |
|
|
(425,297 |
) |
8,176,197 |
|
(1,440,577 |
) |
|||
| Income (loss) before income tax |
|
(3,100,935 |
) |
2,074,510 |
|
(18,099,854 |
) |
(7,013,505 |
) |
|
|||||||||
| Income tax benefit/(expense) |
|
51,568 |
|
28,256 |
|
92,616 |
|
(10,197 |
) |
| Income (loss) for the period |
|
(3,049,367 |
) |
2,102,766 |
|
(18,007,238 |
) |
(7,023,702 |
) |
|
|||||||||
| Other comprehensive income | |||||||||
| Items that may be reclassified to profit or loss: |
|
||||||||
| Exchange differences on translation of foreign operations | 4(b) |
(1,253,789 |
) |
(8,575,458 |
) |
6,070,247 |
|
(9,404,379 |
) |
| Total comprehensive loss for the period |
|
(4,303,156 |
) |
(6,472,692 |
) |
(11,936,991 |
) |
(16,428,081 |
) |
|
|||||||||
| Total comprehensive loss for the period is attributable to: |
|
||||||||
| Owners of GetSwift Limited |
|
(3,947,887 |
) |
(6,368,801 |
) |
(11,369,304 |
) |
(16,324,190 |
) |
| Non-controlling interests |
|
(355,269 |
) |
(103,891 |
) |
(567,687 |
) |
(103,891 |
) |
|
(4,303,156 |
) |
(6,472,692 |
) |
(11,936,991 |
) |
(16,428,081 |
) |
|
|
|||||||||
|
|||||||||
| Loss per share for loss attributable to the ordinary equity holders of the company: |
|
||||||||
| Basic/diluted loss per share | 7 |
(0.10 |
) |
0.08 |
|
(0.59 |
) |
(0.26 |
) |
|
|||||||||
|
|||||||||
|
|||||||||
GetSwift Technologies Limited Condensed interim consolidated statement of cash flows For the nine months ended 31 March 2021 and 2020 |
|||||
| Nine months ended | Nine months ended | ||||
| 31-Mar-21 | 31-Mar-20 | ||||
| $ | $ | ||||
| Cash flows from operating activities | |||||
| Receipts from customers (inclusive of GST) | 22,040,324 |
|
3,333,930 |
|
|
| Payments to suppliers and employees (inclusive of GST) | (31,591,636 |
) |
(15,813,253 |
) |
|
| R&D tax incentive received | 165,829 |
|
164,015 |
|
|
| Income taxes paid | (355,760 |
) |
(10,197 |
) |
|
| Interest paid | (22,922 |
) |
(32,823 |
) |
|
| Interest received | 80,292 |
|
654,419 |
|
|
| Net cash (outflow) from operating activities | (9,683,873 |
) |
(11,703,909 |
) |
|
| Cash flows from investing activities | |||||
| Payments for property, plant and equipment | (138,106 |
) |
(30,778 |
) |
|
| Payments for acquisition of business | - |
|
(5,837,329 |
) |
|
| Payments for other non-current assets | - |
|
(66,040 |
) |
|
| Net cash (outflow) from investing activities | (138,106 |
) |
(5,934,147 |
) |
|
| Cash flows from financing activities | |||||
| Proceeds from issues of shares | 489,859 |
|
- |
|
|
| Financing costs for LDA facility | (300,000 |
) |
- |
|
|
| Restrinction for letter of credit | (424,955 |
) |
- |
|
|
| Proceeds from line of credit | 2,106,751 |
|
- |
|
|
| Repayment of line of credit | (2,668,758 |
) |
- |
|
|
| Principal elements of lease payments | (91,483 |
) |
(256,586 |
) |
|
| Net cash inflow (outflow) from financing activities | (888,586 |
) |
(256,586 |
) |
|
| Net (decrease) in cash and cash equivalents | (10,710,565 |
) |
(17,894,642 |
) |
|
| Cash and cash equivalents at the beginning of the period | 23,300,583 |
|
48,255,760 |
|
|
| Effects of exchange rate changes on cash and cash equivalents | (746,598 |
) |
164,701 |
|
|
| Cash and cash equivalents at end of the period | 11,843,420 |
|
30,525,819 |
|
|
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