NEW YORK, Nov. 28, 2017 /PRNewswire/ -- Power Clouds Inc. (OTC Pink: PWCL), a global renewable energy company, today announced financial results for the third quarter ended September 30, 2017.
Revenue for the third quarter ended September 30, 2017 was $640,713, a 29% increase compared to $496,916 revenue for the same quarter of the previous year. The increase is primarily due to the inclusion of revenues from the acquisition of two PV parks in Italy that was completed on March 31, 2017. Gross profit for the quarter was $323,182, a 23% increase compared to $263,448 for the comparable period last year reflecting the immediately accretive 75% gross margins delivered from the Italian parks that augment the gross margins generated from the Company's Romanian operations.
Total operating expenses were $265,250 in the third quarter of 2017 compared to $1,006,573 in the same period of 2016. The decrease is primarily due to a decline in non-cash stock compensation costs which totaled $8,750 in the third quarter of 2017 compared to $660,000 in the third quarter of 2016. For the three months ended September 30, 2017, EBITDA was $57,932 compared to an EBITDA loss of $743,125 for the third quarter of 2016. This was the second consecutive quarter of positive EBITDA for the Company.
The net loss was $446,933, or $(0.01) per fully diluted share, compared to a net loss of $935,176, or $(0.01) per fully diluted share, for the same period of fiscal 2016. Increases in interest expense and depreciation and amortization, due to the inclusion of the Italian operations, accounted for the increase, as well as a $202,135 provision for a one-time loss on the sale of a subsidiary in the 2017 period. Fully diluted per share results are based on weighted average shares outstanding of approximately 101.3 million and 99.5 million in the three- month periods of 2017 and 2016 respectively.
"The third quarter is our second consecutive quarter of strong year-on-year revenue growth and the second consecutive quarter of positive EBITDA. The results are primarily driven from the acquisition of two Italian PV parks that closed in March 2017," said Vincent Browne, Chief Executive Officer of Power Clouds. "We believe that operational positive EBITDA is sustainable going forward, a reflection of the Power Clouds business model to acquire operational PV parks with long-term government supply contracts and positive recurring cash flows that deliver long term stable and predictable incomes."
"We are continuing to execute on our strategic plans to expand our operations in Europe and have a strong pipeline of potential acquisitions that are progressing through our rigorous due diligence process. We are also working to close the 3 additional PV parks in Italy, previously announced in August, which we now expect to close during Q1 2018. The addition of these parks will more than double our installed power base in Italy and be immediately accretive upon closing, another important characteristic of the Power Clouds operating model," concluded Mr. Browne.
For the first nine months of 2017 ended September 30, 2017, revenue was $1,574,973, a 41% increase compared to revenue of $1,114,614 for the same period of 2016. Operating expenses were $708,400 for the current nine month period compared to $1,450,683 for the nine months ended September 30, 2016. EBITDA loss narrowed to $12,738 for the nine months ended September 30, 2017, compared to a $935,495 EBITDA loss for the comparable period of 2016. The net loss for the nine months was $1,198,190, or $(0.02) per fully diluted share, compared to a net loss of $1,387,337, or $(0.02) per fully diluted share, for the nine month period of 2016. Fully diluted per share results are based on weighted average shares outstanding of approximately 98.8 million and 95.3 million in the nine-month periods of 2017 and 2016 respectively.
For additional information the full FYQ3 report is available to view at http://www.otcmarkets.com/stock/PWCL/filings
About Power Clouds Inc.
Power Clouds Inc. is a global renewable energy provider that is changing how energy is generated and owned. We create value for our investors by developing; owning and operating clean energy power plants in multiple countries where the combination of regulatory, economic and environment elements are maximized. PWCL operates solar parks that connect directly to national power grids rather than residential rooftops. We currently have activities in Europe & Asia. Global focus means operations are not limited to any one geography or single commercial model or regulatory influence. For further information about how the Power Clouds model works, see www.PowerCloudsInc.com
Forward Looking Statement
This press release contains forward-looking statements. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the OTC Markets Group. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
SOURCE Power Clouds Inc.