NEW YORK, Oct. 03, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Power Clouds Inc. (OTC Pink: PWCL), a global renewable energy company, has announced financial results for the second quarter of 2018 ended June 30, 2018.
Revenue for the second quarter ended June 30, 2018 was $984,713, a 50% increase compared to $655,010 in revenue for the same quarter of the previous year. The increase is primarily due to the inclusion of revenues from the acquisition of two PV solar parks in Italy that was completed on March 31, 2017. Gross profit for the quarter was $537,171, nearly double the $293,120 for the comparable period last year, reflecting the accretive 84% gross margins generated by the Italian parks, augmenting the gross margins generated from the Romanian operations.
Total operating expenses were $382,953 in the second quarter of 2018 compared to $239,267 in the same period of 2017. The increase is primarily due to increased costs related to funding activities for planned acquisitions, the German plants and planned acquisitions in Italy as well as the Company’s ongoing audit activities. For the three months ended June 30, 2018, Earnings Before Interest Depreciation and Amortization (EBITDA) was $154,218 compared to $53,853 for the second quarter of 2017, continuing the run of positive quarterly EBITDA that began in the second quarter of last year.
“We are clearly very pleased with these results that continue our run of quarter-on-quarter revenue increases and positive EBITDA that began with the acquisitions of our solar parks in Italy last year. These acquisitions have served to prove our business model and ongoing growth strategy where each new park acquired delivers immediate stable and sustainable positive incomes and cash flows to the group over a 15-20 year horizon,” said Vincent Browne, Chief Executive Officer of Power Clouds.
“Our expansion into Germany continues on target with five of the seven parks we acquired in June now completed. These first seven parks represent 3MW of installed power that combined will deliver approximately $340k of additional annual revenues and $300k of EBITDA for the next 20 years. We are now working on the contracts for the next 10MW’s of parks in Germany that will share these characteristics and expect completion of these in Q4 of this year. We will be using funds from our existing $20 million financing facility with InMost Partners LLC to complete these additional acquisitions,” concluded Mr. Browne.
For the first six months of 2018 ended June 30th, revenue was $1,421,803, a 52% increase compared to revenue of $934,260 for the same period of 2017. Operating expenses were $618,932, a 40% increase compared to $443,150 for the six months ended June 30, 2017. The increase is primarily due to increased costs related to funding activities for planned acquisitions. EBITDA was $155,168 for the six months ended June 30, 2018, compared to a $70,671 EBITDA loss for the comparable period of 2017. The net loss for the six months ended June 30, 2018 was $414,794, or $(0.00) per fully diluted share, compared to a net loss of $751,258, or $(0.01) per fully diluted share, for the six month period of 2017.
For additional information, the full Q2 2018 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 creates value for investors by developing, owning and operating clean energy power projects in multiple countries where the combination of regulatory, economic and environment elements are maximized. PWCL operates solar projects that connect directly to national power grids rather than residential rooftops. The Company currently has activities in Europe & Asia. This global focus means operations are not limited to any one geography or single commercial model or regulatory influence.
For further information please go to: 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.