Snapshot | Fiscal 2020 (1)
|Revenue||$105.1 million||Gain on Settlement of Debts||$1.4 million|
|Gross Profit||$8.1 million||Adjusted EBITDA (2)||$2.8 million|
VANCOUVER, BRITISH COLUMBIA, CANADA – APRIL 30, 2021 – Mission Ready Solutions Inc. (“Mission Ready” or the “Company”) (TSX Venture: MRS) (OTCQX: MSNVF) today announced its results for the fourth quarter (3-months ended December 31, 2020) (“Q4 2020”) and full-year (12-months ended December 31, 2020) (“FY 2020”).
FY 2020 Financial Highlights (in millions) (1)
|FY 2020||FY 2019||Increase (2020 vs 2019)|
|Revenue||$105.1||$21.2||$83.9 or 396%|
|Gross Profit||$8.1||$2.4||$5.7 or 238%|
|Expenses||$11.1||$8.6||$2.5 or 29%|
|Adjusted EBITDA (2)||$2.8||($3.9)||$6.7 or 172%|
|Average Gross Margin||8%||11%||(3%)|
Q4 2020 Financial Highlights (in millions) (1)
|Q4 2020||Q4 2019||Increase (2020 vs 2019)|
|Revenue||$42.6||$13.5||$29.1 or 216%|
|Gross Profit||$2.5||$1.1||$1.4 or 127%|
|Expenses||$2.1||$2.6||($0.5) or (19%)|
|Adjusted EBITDA (2)||$1.9||($1.8)||$3.7 or 206%|
|Average Gross Margin||6%||9%||(3%)|
(1) Rounded to nearest hundred thousand
(2) Excludes interest, income taxes, depreciation, amortization and stock-based compensation
Operations Highlights (FY 2020)
- Board Appointments – Mission Ready welcomed William Bratton, Terrace (Terry) Nixon, Buck Marshall and Daniel Raczykowski to the Company’s Board of Directors; James Marks as Chairman of the Board.
- COVID-19 Response Team – The Company announced the redirection and reassignment of certain resources and personnel to facilitate the Company’s pandemic response.
- DHS FEMA Contract Award ($24 Million) – Mission Ready received a $24 million contract award from the U.S. Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA).
- Lyft Partnership – Mission Ready Partnered with Lyft, Inc. (“Lyft”) to help safeguard the health and wellbeing of Lyft drivers and passengers through the provision of personal protective equipment and antimicrobial supplies.
- Management Changes – James Marks, Chairman of the Board, was appointed interim Chief Executive Officer (“CEO”) of the Company before stepping aside to welcome Buck Marshall as the Company’s new President and CEO, effective October 1, 2020 which coincided with the appointment of Alvin Church as President of Unifire, Inc.
- HHS Contract Awards (Estimated Value: $127 Million) – In September 2020, Mission Ready, through its wholly-owned subsidiary, Unifire, Inc., was awarded a number of government contracts for personal protective equipment (“PPE”) with an estimated value of $127,878,307 and a maximum value of $435,723,020 to be fulfilled over a 12-month period. As part of its COVID-19 pandemic response, the contracts were awarded to the Company through the United States Defense Logistics Agency Troop Support Clothing & Textiles supply chain to facilitate the delivery of PPE to the United States Department of Health and Human Services for the Strategic National Stockpile.
- Receipt of $112 Million in Aggregate Purchase Orders Across HHS Contracts – In October 2020, the Company announced that it had received an aggregate of $112 million in purchase orders further to the contract awards announced by the Company on September 18, 2020.
- Virtual Annual General and Special Shareholders’ Meeting – The Company conducted its 2020 Annual Shareholder Meeting virtually via live webcast on November 4, 2020.
- OTCQB Listing – The Company announced its intention to initiate the process to obtain a cross-listing of its common shares on the OTCQB Marketplace.
The release of the FY 2020 financials gives me an opportunity to provide some insight into the numbers from my perspective, to opine on what I find valuable in the data, and to communicate a baseline in relation to what I expect from the Company going forward. Please review the FY 2020 audited annual financials and the related Management Discussion and Analysis for details and notes.
My primary focus since joining the Company in October 2020 has been on improving the total financial position of the Company in order to achieve sustained profitability and increase shareholder confidence. These are my highlights:
- Revenues were $43MM during Q4 2020 compared with a total of $62MM for Q1, Q2 and Q3 combined. The underlying driver to this was a focus on removing the barriers of administrative work from our front-line sales team in order that they may focus on what they do best.
- The fourth quarter drive increased total revenue for the year to $105.1MM with total expenses of $11.1MM. For context, the Company’s Q4 2020 revenues grew by nearly $84MM dollars compared to the same period in 2019 while reducing total expenses as a ratio from 41% to 11%, reflecting the Company’s commitment to a sound and responsible expense management strategy.
- Net loss of $1.3MM equates to a $6.1MM improvement over 2019. The Net loss for FY 2020 is largely attributable to the $1.5MM Stock-based compensation, a non-cash expense which is included as an add back in the Adjusted EBITDA calculation referenced herein. Historical capital costs reflected in the Interest Expense also contributed to the Net loss calculation. The Company recorded an EBITDA for FY 2020 of $1.3MM and an Adjusted EBITDA (exclusive of Stock-based compensation) of $2.8MM.
- The Company generated sufficient cash flow to increase its overall cash position, reduce outstanding long and short-term debt, and begin funding an increasing number of orders internally as opposed to utilizing expensive capital facilities that would hamper the Companies ability to grow the bottom line.
- The significance of the Company generating cash flow through operations is that it is indicative that the Company is trending towards positive liquidity and working capital positions. Said another way, the Company is generating enough cash to meet its short-term obligations.
- The reduction in outstanding legacy debt is another key highlight. While cash flow and time were not enough to retire the entire outstanding debt and bring all operations current, it reflects the Company’s commitment to better margins and expense management. This philosophy is carried forward in to 2021 and the future.
- Non-financial highlights include an upgrade to our IT network, accounting software, market changes and brand enhancements. We have been working to produce new marketing material, videos, and interviews that are being released through our social media channels. I would encourage you to visit and sign up for our newsletter at www.mrscorp.com and to visit Facebook and LinkedIn to follow Mission Ready Solutions and Unifire for additional content.
My excitement over the Company’s ever-improving financial position increases with each milestone achievement and I truly believe that we are only on the first leg of the journey. I look forward to reporting the first quarter 2021 financials which are due to be filed on or before May 31, 2021. I am confident in the trends and activities of the Company to position ourselves for new contracts and opportunities through 2021 and beyond.
The Company’s Audited Annual Financial Statements, Management Discussion and Analysis and related filings for fiscal 2020, can be viewed on SEDAR (System for Electronic Document Analysis and Retrieval) at the following link:
About Mission Ready Solutions Inc.
Mission Ready specializes in providing comprehensive government contracting solutions through its privileged access to a host of federal contracting vehicles including Multiple Award Schedule (“MAS”) contracts awarded and administered by the United States General Services Administration (“GSA”).
Mission Ready’s wholly-owned subsidiary, Unifire, Inc. (“Unifire”), is a designated Small Business and an industry-leading manufacturer and distributor of over 1.5 million military, fire and first-responder products. With extensive knowledge and experience in providing turnkey solutions to the United States Federal Government, Unifire utilizes its time-proven industry relationships and proprietary technology infrastructure to efficiently source and deliver critical, life-saving products in cooperation with government program managers, military and federal contracting offices, base supply centers, and other federal, state and local supply agencies.
Mission Ready Solutions Inc.
(Signed “Buck L. Marshall”)
Buck L. Marshall
President, CEO and Director
T: +1 877.479.7778
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should” or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by Mission Ready Solutions Inc. as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mission Ready Solutions Inc. to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Mission Ready Solutions Inc. does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.