NEW YORK, Aug. 31, 2017 (GLOBE NEWSWIRE) -- Power Clouds Inc. (OTC Pink:PWCL), a global renewable energy company, today announced financial results for the second quarter ended June 30, 2017.
Revenue for the second quarter of 2017 was $655,010, a 93% increase compared to $339,351 revenue for the same quarter of the previous year, ended June 30, 2016. The increase is primarily due to the inclusion of revenues from the recent acquisition of two PV parks in Italy that was completed on March 31, 2017. This growth will also be reflected in PWCL’s Q3 results due to the recurring nature of the revenue streams. Gross profit was $293,120, a 130% increase compared to $127,257 for the comparable period last year reflecting the immediately accretive 85% gross margins delivered from the Italian parks as well as a reduction of 40% in Romanian gross margins due to ongoing challenges with green certificate income there.
Total operating expenses were $239,267 in the second quarter of 2017 compared to $173,336 in the same period of 2016. Increased corporate activities relating to being a public company in addition to increased pre-sales costs in Romania primarily accounted for the rise in operating expenses. For the three months ended June 30, 2017 EBITDA was positive for the first time and totaled $53,853 compared to an EBITDA loss of $46,079 for the second quarter of 2016.
The net loss was $404,025, or $(0.00) per fully diluted share, compared to a net loss of $178,939, or $(0.01) per fully diluted share, for the same period of fiscal 2016. Increases in interest expense and depreciation and amortization, due to the inclusion of the Italian operations, accounted for the increase, as well as a $165,148 provision for loss on sale of a subsidiary in the 2017 period. Fully diluted per share results are based on weighted average shares outstanding of approximately 101.3 million and 92.2 million in the three-month periods of 2017 and 2016 respectively.
“This was a strong quarter for Power Clouds and in line with expectations. Revenue was nearly double that of last year and we reported positive EBITDA for the first time, an important milestone,” said Vincent Browne, Chief Financial Officer of Power Clouds. “Our most recent acquisition of the two PV parks in Italy contributed to group revenue for the first time in the second quarter and their EBITDA contribution allowed us to post the positive turn in this important metric. We believe that this is a sustainable position going forward on a like-for-like basis.”
“The recently announced acquisition of a further three PV parks in Italy, which is expected to be completed in October, will more than double our installed power base in the country. Once completed, the acquisition will again double our Italian revenues and gross profit for the 15 years remaining on the government subsidies, some of which will be immediately accretive to our fourth quarter 2017 results. We believe these results validate our current business model of acquiring existing operational PV parks with long-term supply contracts and positive recurring cash flows as we look to continue to execute on our strategic expansion plans,” Mr. Browne concluded.
For the first six months of 2017 ended June 30, 2017, revenue was $934,260, a 51% increase compared to revenue of $617,698 for the same period of 2016. Operating expenses were flat at $443,150 compared to $438,110 for the six months ended June 30, 2016. EBITDA loss narrowed to $70,670 for the six months ended June 30, 2017, compared to an $186,370 EBITDA loss for the comparable period of 2016. The net loss for the six months was $751,257, or $(0.01) per fully diluted share, compared to a net loss of $446,161, or $(0.01) per fully diluted share, for the six month period of 2016. Fully diluted per share results are based on weighted average shares outstanding of approximately 98.8 million and 84.7 million in the six- month periods of 2017 and 2016 respectively.
For additional information the full FYQ2 report is available to view at http://www.otcmarkets.com/stock/PWCL/filings
About Power Clouds Inc.
Power Clouds Inc. is a global renewable energy provider that is changing how energy is generated and owned. We create value for our investors by developing; owning and operating clean energy power plants in multiple countries where the combination of regulatory, economic and environment elements are maximized. PWCL operates solar parks that connect directly to national power grids rather than residential rooftops. We currently have activities in Europe & Asia. Global focus means operations are not limited to any one geography or single commercial model or regulatory influence. For further information about how the Power Clouds model works, see www.PowerCloudsInc.com
Forward Looking Statement
This press release contains forward-looking statements. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the OTC Markets Group. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.