December 09, 2020
iCreate Limited (ICREATE) for the nine months ended September 30, 2020 reported revenues of $47.12 million, up from $41.40 million reported a year ago. For the third quarter, ICREATE posted $7.86 million in revenue (2019: $16.38 million).
Management noted that, “the start of one of our major partnerships was delayed and we had to depend on our business-to-consumer (B2C) market to record revenue during this period. During this period, iCreate was able to restart classes while adhering to social distancing protocols in addition to expanding our virtual classes. We continue to build out our corporate partnerships with companies such as Heart Trust/NTA.”
Total direct costs amounted to $7.97 million for the nine months period compared to $10.94 million for the nine months of 2019. Thus, resulting in gross profit of $39.16 million relative to $30.47 million booked last year. Gross profit for the quarter amounted to $6.66 million versus $12.18 million booked for the third quarter of 2019. Other income for the nine months amounted to $68,256 relative to $554,759 for 2019, while the other income for the quarter totalled $34,106 (2019: $261,854).
Total operating expenses for the period closed at $38.86 million in contrast to $42.45 million for the corresponding period of 2019. Operating expenses for the third quarter totalled $11.29 million (2019: $15.33 million). Of this, administrative expense decreased by 11% to $35.94 million (2019: $40.29 million) for the nine months. Depreciation and amortization expense increased year over year to close at $2.93 million versus $2.16 million recorded for the corresponding period in 2019.
As such, operating profit for the period closed at $361,204 in contrast to a loss of $11.43 million for the corresponding period of 2019. Operating loss for the third quarter closed at $4.60 million (2019: $2.88 million).
Finance cost for the nine months amounted to $2.62 million relative to $1.08 million a year ago.
Consequently, net loss for the nine months period amounted to $2.26 million versus a loss of $12.51 million in 2019. For the third quarter, net loss totalled $5.35 million compared to $3.17 million booked in the corresponding quarter last year.
For the nine months, ICREATE reported comprehensive income of $4.81 million, relative to a comprehensive loss of $12.51 million booked in 2019. While for the quarter, total comprehensive income amounted to $1.72 million versus a loss of $3.17 million booked for the corresponding period.
Loss per share (LPS), for the nine months ended September 30, 2020, amounted to $0.01 compared to a LPS of $0.06 for the same period of 2019. The loss per share for the quarter amounted to $0.03 relative to $0.02 reported in 2019. The trailing twelve months LPS is $0.18. The number of shares used in this calculation was 197,592,500 shares. iCreate traded on November 8, 2020 at $0.63.
ICREATE mentioned that, “the company benefited from a revaluation surplus of $7.1m from our license agreement with Code Fellows to acquire the license to deliver coding and data security courses in Jamaica.”
Balance Sheet at a Glance:
As at September 30, 2020, total assets increased to close at $56.30 million (2019: $47.50 million). The increase was largely due to a $10.70 million growth in ‘Investment or other non-current assets’ which closed at $11.97 million (2019: $1.27 million).
Shareholder’s deficit totalled $792,411 compared to a shareholders’ equity of $26.71 million quoted as at September 30, 2019. This resulted in a shareholders’ deficit value of $0.004 (2019: book value $0.135).
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