ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--Aug 23, 2018--Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPLI) today reported its financial results for the three months ended June 30, 2018.

Revenue for the three months ended June 30, 2018 was $5.0 million, down from $6.5 million for the same period in the previous year, a decrease of 23%. Gross profit for the period was $2.3 million, a decrease of $0.2 million over the three-month period ended June 30, 2017. Pre-tax loss was $0.2 million for the current quarter compared to a profit of $0.2 million for the same period in the previous year. After tax loss for the three months ended June 30, 2018 was $0.2 million compared to an after tax profit of $0.1 million for the same period in the previous year.

Revenues decreased in the third quarter this year compared to the same period last year due to lower revenues in the Training and Simulation business unit. Gross profit of $2.3 million was down slightly in the current quarter compared to the same quarter in the previous year with improved gross margins on lower revenues. Expenses for the quarter were up $0.2 million from that of the same quarter in the previous year. The Company continued to pay down long term debt and have reduced the balance by $3.8 million over the first nine months of this fiscal year. Included in the repayment of long term debt during the nine month period ended June 30, 2018 was the retirement of a 14% unsecured convertible term note for $3.0 million paid out of restricted cash on hand held for this purpose.

Bluedrop continued its investment trend in its research and development efforts with $0.9 million of investment in the quarter in programs to build new and stronger intellectual property based products.

For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended June 30, 2018 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.

Commenting on the quarterly results of Bluedrop, Founder and CEO Emad Rizkalla said “It was a slower quarter for the Training and Simulation business unit as it had a larger low margin simulator sale in the same period last year and as it transitions from several larger programs to starting up several new programs. This created a gap in workflow that resulted in us having to maintain the full team while we wait for the new programs to get under way. We remain very optimistic that our new rear crew training devices will contribute to the future revenues while understanding it will take some time to get through the long lead times of the procurement cycles. The Learning Networks business unit has been extremely busy in delivering content and finalizing its new service offering to meet the recent contracts awarded for its SaaS business but cannot recognize revenues until the systems go live. The Learning Networks backlog is at its highest level every reported. Overall, we are pleased with the progress both business units are making on their product strategies and expect that these investments will yield positive results over the coming years.”

About Bluedrop

Bluedrop Performance Learning Inc. (TSX-V: BPLI) is an innovator in both the development of workplace e-learning and simulation as well as the way large organizations deliver, track and manage training. Our two divisions serve the world’s leading aerospace and defence organizations as well as broad cross sections of organizations focused on managing system wide health and safety and developing the skills of external workforces. Bluedrop is creating the workforce of the future by improving the effectiveness, speed and costs of training delivery and management. For more information, visit www.bluedrop.com

This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2017. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180823005766/en/

CONTACT: Bluedrop Performance Learning Inc.

Media contact:

Bernie Beckett, 709-739-4938

Chief Financial Officer

berniebeckett@bluedrop.com

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: EDUCATION TECHNOLOGY SOFTWARE AUDIO/VIDEO TRANSPORT AIR PUBLIC POLICY/GOVERNMENT MANUFACTURING PUBLIC POLICY AEROSPACE TRAINING

SOURCE: Bluedrop Performance Learning

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PUB: 08/23/2018 05:25 PM/DISC: 08/23/2018 05:25 PM

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