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UGE Reports Third Quarter 2020 Financial Results, Including Record Backlog of $112 Million

Toronto, Ontario--(Newsfile Corp. - November 24, 2020) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar energy solutions, reported its financial results for the three and nine months ended September 30, 2020. The Company's September 30, 2020 Consolidated Financial Statements and Management's Discussion & Analysis have been filed at www.sedar.com as well as on the Company's website. UGE reports in US dollars.

Third Quarter 2020 Highlights

  • The Company's project backlog, representing the calculated unlevered net present value of solar projects, grew from $83 million in Q2 2020 to $112 million by the end of Q3 2020. When fully deployed, which is anticipated over the following 24 months, the backlog represents $11 million of long-term annual recurring revenue over an average lifespan of 25 years.

  • Revenue from UGE's continuing business units grew 35% year over year, compared with the first nine months of 2019, after taking into account the effect of winding down the Company's EPC services division.

  • Since adopting a recurring revenue model, the Company's gross margins have increased and were 48% through the first nine months of 2020. After accounting for one-time factors, gross margins remain above 30%.

  • Since refocusing the Company to self-financing its projects in late 2019, UGE commissioned its first two self-financed projects in the quarter. Once deployed, self-financed projects generate recurring revenue throughout their entire project lifetimes.

  • During the quarter, the Company settled debt owing from its UGE Canada RE business unit, which resulted in Other Income of $1.1 million.

  • Net income for the quarter was $0.6 million versus $(0.8 million) in Q3 2019 as the Company benefited from higher gross margins, lower SG&A expenses, and a one-time gain from settlement of debt.

  • Cash at quarter-end was $0.14 million, which has since increased due to the sale of a project and the exercise of warrants and options, shown below.

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Subsequent to Quarter End

  • Subsequent to quarter-end, the Company sold a project for $0.7 million, providing the Company with a non-dilutive source of capital, and received proceeds through the exercise of options and warrants totaling $0.2 million.

  • UGE has reached commercial operation on two additional projects within the fourth quarter, further growing the Company's base of operating projects and recurring revenue.

"2020 has seen UGE reestablish itself as a developer, builder, and owner/operator of commercial and community solar projects," said Nick Blitterswyk, CEO of UGE. "Through unprecedented challenges in the global economy, this year we have grown our project backlog by over 200%, reaching $112 million by the end of the third quarter. With our first self-financed projects now operational, and several more under construction, we are preparing to accelerate our growth in 2021."

UGE Conference Call to Discuss Q3 2020 Financial Results

UGE's CEO Nick Blitterswyk, and CFO Paul Kania will host a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar and submit questions below:

Date: Tuesday, November 24, 2020
Time: 2:00pm EST
Register: www.ugei.com/register

About UGE

UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 400MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com.

Contact:
investors@ugei.com
917-720-5685

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68831