PowerBand Reports Third Quarter 2021 Financial Results
- Revenues of $9.2M in Q3 2021, an increase of 96% from Q2 2021 revenues of $4.7M
- Adjusted EBITDA loss reduced by 22% in Q3 2021 relative to Q2 2021
TORONTO, Ontario (November 10, 2021) — PowerBand Solutions (TSXV: PBX) (OTCQB: PWWBF) (“PowerBand” “PBX” or the “Company”), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, is announcing that it has filed its Interim Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and nine-month period ended September 30, 2021. These documents may be viewed under the Company’s profile at www.sedar.com. All numbers are in Canadian dollars, except otherwise noted.
The financial results for the three-month period ended September 30, 2021 when compared to the same period in 2020 and the previous quarter ended June 30, 2021 have demonstrated a significant increase in revenues as depicted in the table below. This is primarily due to the increased dealer participation and the adoption of the DRIVRZ lease origination proprietary software. As the business commenced its scaling phase early in 2021, the adjusted EBITDA loss has been decreasing quarter-over-quarter, and the Company expects to achieve profitability by Q1 2022. The development of our Drivrz Financial loan-lease platform, a multi-lender platform built with the latest, cloud-scalable technologies has been accelerated with the infusion of new capital and the other two business segments, DrivrzXchange and DrivrzLane is expected to be in the market early 2022.
PowerBand has invested significantly in its workforce in preparation for substantial growth in future periods. While depressed inventory levels delayed economies of scale benefits from corporate overhead functions, the Company sees margin expansion in coming quarters. Drivrz Financial is ahead of plan on its dealer onboarding initiatives and expects material contribution to originations from its recently signed enterprise customers. The Company reiterates that its true scaling capability will not be appreciated until used car prices normalize, which is expected to gradually improve over the next 12-18 months.
The Company has reported year-to-date 2021 revenues of $16.8M an increase of 460% when compared to full twelve months 2020 revenues of $3.0M. The adjusted EBITDA loss for the nine-months ended September 30, 2021 continues to narrow as revenue accelerated faster than expenses in absolute values.
Cash on hand at September 30, 2021 was $9,236,773 compared to $1,403,213 as at December 31, 2020. The net current assets position has improved to $2,732,068 at September 30, 2021 from ($5,925,718) at December 31, 2020.
In October 2021, the board of directors approved the grant of 8,192,500 stock options and 3,150,000 restricted share units to directors, officers, employees and consultants at a price of $0.89 per share which vest over a two-year period and has an expiry date of five years from the date of issuance.
2021 Segment Highlights
Drivrz Financial’ s lease origination software continues to report exponential growth as reflected in the increase in revenue noted in the chart below:
Kelly Jennings, CEO and Founder of PowerBand Solutions states “With our three key complimentary verticals – Drivrz Financial, DrivrzLane and DrivrzXchange ready to be in the market early 2022 and over 1,000 dealer relationships, we are excited about the tremendous growth opportunity for the Company and value to our shareholders.”
About PowerBand Solutions, Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand’s integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric and non-electric vehicles, on any phone, tablet or PC connected to the internet. PowerBand’s transaction platform – being trademarked under DRIVRZ™ – is being made available across North American and global markets.
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Chief Executive Officer
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This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company’s performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company’s operating results.
This news release contains forward-looking statements relating to the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, we cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as at the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.