Q3 FY2019 Market Update – BuildingIQ

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BuildingIQ (ASX: BIQ) — Q3 FY2019 Market Update

31 October 2019

Financial Summary

  • Cash receipts from customers were up 10.4% to A$1.73m (A$1.57m prior corresponding period (pcp))
    • Net cash used in operations: A$1.20m, down 36.5% (A$1.89 million pcp)
    • Operating expenses: down 25.8% to A$1.70m, (A$2.29m pcp)
  • Unaudited total income in Q3 FY2019: A$2.23 million, down 2.9% (A$2.30m pcp)
    • Revenue: A$1.84m, down 4.6% (A$1.93 million pcp)
  • Contract bookings were lower at A$1.27 million (A$1.81m pcp), YTD A$9.56 million (A$7.92m pcp)
  • $0.99m was received during the quarter from Tranche 2 of the private placement. A further $0.31m was received after the end of Q3 from the Share Purchase Plan (SPP)
  • Cash and cash equivalents at quarter end: A$0.14 million (A$0.53m last quarter)

Operational Summary

  • An additional 10 buildings are now active on the 5i Platform for a total of 1,337 buildings and approx. 142M SF (36 additional buildings and total of 1,212 buildings pcp)
  • 29 new sites were added in the quarter to BuildingIQ’s Facility Worksite Service. 43,282 work order requests / transactions were processed in the quarter for 430 plus users
  • Cumulative YTD value delivered to clients through documented operations and energy savings continued to grow. In Q3, savings were up 12% to A$5.15 million (A$4.58 million pcp)
  • Five (5) customer contracts were renewed during the quarter, maintaining strong renewal rates of greater than 97% (noting contracts vary in size and duration)

Note: BuildingIQ is incorporated in Delaware and has a 31 December financial year end.

BuildingIQ Inc. (ASX: BIQ), ), a tech-enabled services business, today released its Appendix 4C and Market Update for the third quarter of FY2019 ending 30 September, 2019.

In commenting, BuildingIQ’s President & CEO, Michael Nark, said “The benefits and opportunities from Australia’s construction boom were again evident in the past quarter and underpinned our new business with 5 contracts in Greenfield projects.

“We achieved some notable traction this quarter in two sectors, Education and Health, with our subsidiary Buildingsense, being approved as a panellist for the NSW Government’s Schools Infrastructure ‘Cooler Classrooms Program’. While the program scope is for the provision of systems and infrastructure in schools to allow for air conditioning installation, the future benefit is the adoption of Established building services to help schools manage energy efficiency. In the Health sector, Buildingsense won its first contract from NSW Health for the Mudgee Hospital precinct development.”

“Our financial metrics were mixed. Revenue was relatively steady year-on-year as delayed project starts in our Greenfield business pushed back the expected top line growth by a quarter. Positively, cash receipts from customers were up 10%, we also kept a tight rein on operating expenses, which were 25% lower than the same period last year, and drove the 36% reduction in net cash used in operations. In addition to the proceeds from the SPP, we are expecting proceeds of at least A$750k from the financing of our 2019 R&D tax credit in the fourth quarter.

“In the Established buildings market in North America, BuildingIQ secured new business for complete 5i Services for more than 1M SF across three (3) new customers in the Northeast. In Western Canada, BuildingIQ was named a certified energy efficiency provider for British Columbia Hydro’s commercial building customers. The United Arab Emirates continues to show promise with another building added in the region this quarter.

“In Australia, we saw examples of the potential long-term benefits of our Greenfield project work with the conversion of two (2) projects to Established building 5i service contracts, plus we added new Greenfield projects for a hospital, office building and education facility. Additionally, in recognition of our services to drive optimization for Established buildings, we recently executed a new agreement with an existing healthcare client to rollout 5i services to a portfolio of 16 new sites Australia-wide with a three (3) year term.”

BuildingIQ services continued to deliver documented operational and energy savings for customers. Cumulative savings for Q3 FY2019 totalled $5.15 million, an increase of 12%.

The number of buildings active on the 5i Platform continued to grow, with 10 new buildings added during the quarter. Services are now provided to more than 1,330 buildings globally, reflecting the ongoing adoption and up from just 893 buildings three years ago.

Total Buildings Chart

Future Updates

The Company will hold an investor conference call at 10am (AEDT) on 31 October, 2019 to discuss this announcement. Please refer below for the dial-in details and use the computer login details if you wish to submit typed questions via the “chat” functionality.

Quarterly investor call details:
Time: 10 am (AEDT)
Date: Thuersday 31 October, 2019
Phone: +61 2 9087 3604 (AU) or +1 (312) 757-3126 (US) or +852 3071 3169 (HK)
Access code: 983-247-749
Please note: For investors wanting to ask questions, please use the computer login below.
Optional computer login: https://global.gotomeeting.com/join/983247749

Financial Calendar

Future Dates* Details
January 30, 2020 Appendix 4C & Q4 FY2019 Market Update
February 28, 2020 FY2019 Annual Results
April 30, 2020 Appendix 4C & Q1 FY2020 Market Update

*NOTE: Dates may be subject to change


For further information contact:

Lisa Jones
Company Secretary
Ph.:  +61 2 9360 0602
E: lisajones@buildingiq.com

Christine Bowen
Ph.: +61 414 861 629
E: christine@communicaterelate.com.au

About BuildingIQ
BuildingIQ (ASX: BIQ) helps building owners and operators worldwide lower energy use, increase building operations efficiency and enhance tenant comfort. The Company’s 5i cloud-based platform and Managed Services deliver on the promise of Internet of Things (IoT) for buildings. Approximately 142M square feet of building space is currently under management with BuildingIQ. www.buildingIQ.com

Foreign Ownership Restrictions
BuildingIQ’s CHESS Depositary Interests (CDIs) are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers or sales which are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. The holders of BuildingIQ’s CDIs are unable to sell the CDIs into the US or to a US person unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a ‘FOR US’ designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.