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ProBility Media Corp. Reports Record Quarter of Sequential Revenue Growth(June 18, 2018)
Q2 Revenue Reached $4.0 Million
HOUSTON, June 18, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – ProBility Media Corp. (OTCQB:PBYA), an education technology (EdTech) company offering immersive technologies, digital learning and compliance solutions for the industrial education and training markets, today announced its financial results for the fiscal 2018 second quarter ended April 30, 2018.
Revenue for the second quarter of 2018 totaled $4,017,599, an increase of 118 percent compared to revenue of $1,840,647 in the second quarter ended April 30, 2017. Revenue for the six months ended April 30, 2018 totaled $7,753,140, an increase of 165 percent compared to $2,928,827 for the six months ended April 30, 2017. The growth represents a record quarter of increasing revenue for ProBility Media Corp. The increase was due to sales from companies that were acquired since January 31, 2017, which realized an increase in sales of $460,000, during the three months ended April 30, 2018, and sales from companies that were acquired since January 31, 2018, which recognized sales of $1,700,000 during the quarter. Gross margins improved in the comparable second quarters from 37.50 percent to 41.07 percent.
Fiscal 2018 Second-Quarter Highlights:
- Disco Learning Media secured a renewed contract with the Minnesota Historical Society.
- North American Crane Bureau Group launched the latest virtual reality platform for crane training at AISTECH 2018.
- Disco Learning Media launched Watt Watchers 2.0 at the Texas Energy Managers Association Conference 2018.
- Disco Learning Media secured a contract with the State of Texas for the development of a series of new STEM programs.
“ProBility reported its strongest quarter in the Company’s history in the second quarter of fiscal 2018,” stated ProBility CEO Evan Levine. “During the quarter we continued to execute on our growth plans and expand our offerings in the crane, energy and STEM educational materials space. Our costs as a percentage of sales decreased during this period as we shifted our product focus from printed materials to higher margin training and eLearning products. ProBility has been funding its accelerated growth through the issuance of debt vehicles and is now in the process of exploring certain debt reduction opportunities which would positively impact the balance sheet and income statement. As we continue to execute on our growth strategy we believe we have the opportunity to explore more advantageous forms of financing with the intention of a more positive impact on our balance sheet. We believe that our second-quarter results validate both our growth strategy, and the ongoing acceptance of ProBility as a leading provider of educational and training materials within the industrial trades.”
Total operating expenses were $2,890,931 compared to $1,319,079 in the second quarter of 2017. The increase was due to cost of sales from companies that were acquired since January 31, 2018, which realized an increase in cost of sales of $770,000, during the three months ended April 30, 2018, and an increase in cost of sales from our operations that existed at April 30, 2017, of $230,000 during the period. Our costs as a percentage of sales decreased during this period as we shifted our product focus from printed materials to higher margin training and eLearning products, which resulted in higher gross margin. The second-quarter net loss was $4,363,460, or ($0.08) per basic and diluted share, compared to a net loss of $505,704, or ($0.01) per basic and diluted share, for the second quarter of fiscal 2017. This increase was impacted by the change in the derivative liability, a noncash expense, and higher interest expense due to higher note balances. Basic and diluted per share results are based on weighted average shares outstanding of 55,783,687 and 45,143,289 respectively.
ProBility Media Corp.
Chairman and Chief Executive Officer
President and Chief Operating Officer
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