GetSwift Reports Fiscal Third Quarter 2021 Financial Results

NEW YORK–(BUSINESS WIRE)–GetSwift Technologies Limited (“GetSwift” or the “Corporation“; NEO: “GSW”), a leading provider of last mile SaaS logistics technology and services, has reported its financial and operational results for the fiscal third quarter ended March 31, 2021.

Key Third Quarter and Subsequent Operational Highlights

  • Introduced next-generation On-Demand Dispatching algorithm to help clients connect orders with drivers more efficiently by automatically batching a pair of deliveries with just one driver whenever possible, minimizing the number of drivers needed and maximizing vehicle capacity.
  • Partnered with elGrocer, the UAE’s multi-award winning and industry-recognized grocery delivery organization with over 300 stores across all seven Emirates, to provide a full suite of services through its SaaS platform including fleet management, route-optimization, and other services to ensure fast, efficient delivery to customers across the UAE.
  • Chosen by Famous Dave’s, an award-winning, internationally recognized barbeque restaurant chain operating 146 restaurants in 31 states, Canada, and the United Arab Emirates, to provide a full suite of last mile delivery logistics services through its SaaS platform.
  • Redomiciled from Australia to Canada, and its common shares were approved for listing with the NEO Exchange (“NEO”) under the symbol “GSW” to increase visibility in the marketplace, move onto a senior stock exchange to improve stock liquidity, further broaden its institutional shareholder base, and enhance long-term shareholder value.

Management Commentary

“The third quarter of 2021 was marked by ongoing support for the adoption of our technology by major businesses that require affordable, scalable, secure last mile delivery management,” said Bane Hunter, CEO of GetSwift. “The flexibility of our solution was illustrated by two significant partnerships during the quarter, including a countrywide grocery delivery service in the UAE and an international barbecue restaurant chain delivering meals to customers, both highlighting the accelerating ‘digital-first’ trend in the food category.

Our technology capabilities continued to evolve during the quarter after identifying a key efficiency improvement for dispatching deliveries. Our next generation On-Demand Dispatching can automatically batch a pair of deliveries with just one driver whenever possible when orders or jobs are coming in on the fly. This complements our five additional dispatching methods, giving owners multiple options to choose the right dispatch for their business. We look forward to announcing additional technology improvements in the coming months.

Operationally, the quarter marked our corporate transition from Australia to Canada and listing on the NEO Exchange to better align with our New York headquarters. In our first few months of trading, we have found NEO to be a perfect fit for us. Our customer acquisition and technology achievements have persisted through the year despite the ongoing class action litigation challenges to our company. After completing mediation, we were unable to reach any settlement and are now preparing for trial and looking forward to presenting our case.

Revenue for the quarter was supported by an increasing level of subscriptions. We are disappointed that certain projects and initiatives we have been investing in and had hoped would materialize for this quarter have been delayed, with that said although there are no guarantees, the team is working hard to deliver them in 2021. Our current cash position will support current working capital needs as we continue to focus on cost reductions to streamline our business and explore additional financing opportunities to support our ongoing growth.

Looking ahead to the remainder of fiscal year 2021, we expect to meet our goals for the year and believe the opportunity for our company has never been greater. Although we have seen delays, our momentum will continue as we improve our cloud-based SaaS logistics services in response to our customers’ needs, and diversify our growing base of users as more companies transition to the demands of the digital economy,” concluded Bane.

Third Quarter 2021 Financial Results

Revenue for the third quarter of 2021 totaled $2.7 million. This compares to revenues of $6.1 for the third quarter of 2020. The decrease in revenue was primarily due to expected project initiations.

Total operating expenses for the third quarter of 2021 were $0.9 million as compared to total operating expenses of $4.5 million for the same period in 2020.

Cash used in operating activities for the three months ending March 31, 2021 totaled $9.7 million compared to $11.7 million in the third quarter of 2020, a decrease of $2.0 million.

Net loss for the third quarter of 2021 was $3.0 million, as compared to a net income of $2.1 million, in the third quarter of 2020.

Cash totaled $11.8 million at March 31, 2021, as compared to $7.4 million at December 31, 2020.

About GetSwift Technologies Limited

Technology to Optimise Global Delivery Logistics

GetSwift is a technology and services company that offers a suite of software products and services focused on business and logistics automation, data management and analysis, communications, information security, and infrastructure optimization and also includes ecommerce and marketplace ordering, workforce management, data analytics and augmentation, business intelligence, route optimization, cash management, task management shift management, asset tracking, real-time alerts, cloud communications, and communications infrastructure (collectively, the “GetSwift Offering”). The GetSwift Offering is used by public and private sector clients across industries and jurisdictions for their respective logistics, communications, information security, and infrastructure projects and operations.

GSW is headquartered in New York and its common shares are listed for trading on the NEO Exchange under the symbol “GSW”. The Corporation has filed and obtained a receipt for the Prospectus. A copy of the Prospectus can be obtained under GetSwift’s corporate profile on SEDAR at www.sedar.com.

For further background, please visit www.getswift.co.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Corporation, to the future outlook of the Corporation and anticipated events or results and may include statements regarding the future financial performance of the Corporation. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Forward looking Statements in this press release include statements related to the class action proceeding, the ASIC proceeding, and the anticipated timing of hearings related to, or the outcome of, such proceedings or any negotiations or discussions related thereto. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. 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. Important factors that could cause actual results to differ materially from the Corporation’s expectations include, without limitation, the availability and scheduling of the Federal Court of Australia and other parties involved in the Australian civil legal proceedings, the withdrawal of claims related to, or the settlement of, the class action or the ASIC proceeding, the delivery of judgments related to the class action or the ASIC proceeding that are adverse to the interests of the Corporation, and the other risk factors set forth in the Prospectus under the heading “Risk Factors”. The Corporation undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Corporation to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.

 
 
 
 

GetSwift Technologies Limited

Condensed interim consolidated statement of financial position

As of 31 March 2021

 
 

Notes

31 March

30 June

 

2021

2020

 

$

$

 
ASSETS

 

Current assets

 

Cash and cash equivalents

 

11,843,420

 

23,300,583

 

Trade and other receivables

 

3,780,914

 

10,504,507

 

Prepaids

 

1,801,805

 

2,267,718

 

Inventories

 

1,674,642

 

1,660,744

 

Other current assets

 

424,955

 

 

Total current assets

 

19,525,736

 

37,733,552

 

Non-current assets

 

Property, plant and equipment

 

1,360,658

 

1,318,721

 

Deferred tax assets

 

35,133

 

32,456

 

Intangible assets

 

11,900,053

 

12,962,869

 

Other non-current assets

 

95,373

 

130,517

 

Total non-current assets

 

13,391,217

 

14,444,563

 

Total assets

 

32,916,953

 

52,178,115

 

LIABILITIES

 

Current liabilities

 

Trade and other payables

 

6,709,384

 

13,820,894

 

Contract liabilities

 

74,048

 

306,920

 

Warranty provisions

 

587,191

 

275,530

 

Employee benefit obligations

 

29,824.00

 

97,837

 

Other current liabilities

 

448,549

 

573,524

 

Total current liabilities

 

7,848,996

 

15,074,705

 

Non-current liabilities

 

Trade and other payables

 

 

297,972

 

Deferred tax liabilities

 

932,643

 

1,070,663

 

Warranty provisions

 

309,555

 

554,278

 

Employee benefit obligations

 

 

7,302

 

Other non-current liabilities

 

330,278

 

327,827

 

Total non-current liabilities

 

1,572,476

 

2,258,042

 

Total liabilities

 

9,421,472

 

17,332,747

 

EQUITY

 

Share capital

4(a)

82,332,552

 

79,980,173

 

Other reserves

4(b)

1,276,271

 

(3,028,701

)

Accumulated losses

 

(63,884,649

)

(46,445,098

)

Non-controlling interests

 

3,771,307

 

4,338,994

 

Total liabilities and equity

 

32,916,953

 

52,178,115

 

 

 

GetSwift Technologies Limited

Condensed interim consolidated statement of loss and other comprehensive income

For the three and nine months ended 31 March 2021 and 2020

 

 

 

 

Three months ended 31

March

Nine months ended 31

March

Notes

2021

2020

2021

2020

$

$

$

$

Revenue from contracts with customers

2

2,641,807

 

5,923,988

 

15,433,801

 

7,874,951

 
Other income

3(a)

33,831

 

177,699

 

1,225,476

 

819,021

 

 

 

2,675,638

 

6,101,687

 

16,659,277

 

8,693,972

 

 

Other (losses) gains

3(b)

581,786

 

8,814,696

 

(5,284,380

)

8,453,276

 

 

General and administrative expenses

3(c)

(3,516,861

)

(5,609,779

)

(14,509,701

)

(12,494,697

)

Employee benefits expenses

3(c)

(1,956,532

)

(2,595,460

)

(6,739,436

)

(5,940,885

)

Operating expenses

3(c)

(860,397

)

(4,547,992

)

(8,138,892

)

(4,547,992

)

Share-based payment expenses

 

(24,569

)

(88,642

)

(86,722

)

(1,177,179

)

 

(3,100,935

)

2,074,510

 

(18,099,854

)

(7,013,505

)

 

(425,297

)

8,176,197

 

(1,440,577

)

Income (loss) before income tax

 

(3,100,935

)

2,074,510

 

(18,099,854

)

(7,013,505

)

 

Income tax benefit/(expense)

 

51,568

 

28,256

 

92,616

 

(10,197

)

Income (loss) for the period

 

(3,049,367

)

2,102,766

 

(18,007,238

)

(7,023,702

)

 

Other comprehensive income
Items that may be reclassified to profit or loss:

 

Exchange differences on translation of foreign operations

4(b)

(1,253,789

)

(8,575,458

)

6,070,247

 

(9,404,379

)

Total comprehensive loss for the period

 

(4,303,156

)

(6,472,692

)

(11,936,991

)

(16,428,081

)

 

Total comprehensive loss for the period is attributable to:

 

Owners of GetSwift Limited

 

(3,947,887

)

(6,368,801

)

(11,369,304

)

(16,324,190

)

Non-controlling interests

 

(355,269

)

(103,891

)

(567,687

)

(103,891

)

 

(4,303,156

)

(6,472,692

)

(11,936,991

)

(16,428,081

)

 

 

Loss per share for loss attributable to the ordinary equity holders of the company:

 

Basic/diluted loss per share

7

(0.10

)

0.08

 

(0.59

)

(0.26

)

 

 

 

 

 
 

GetSwift Technologies Limited

Condensed interim consolidated statement of cash flows

For the nine months ended 31 March 2021 and 2020

     
 
Nine months ended Nine months ended 
31-Mar-21 31-Mar-20 
$
Cash flows from operating activities    
Receipts from customers (inclusive of GST)

22,040,324

 

3,333,930

 

Payments to suppliers and employees (inclusive of GST)

(31,591,636

)

(15,813,253

)

R&D tax incentive received

165,829

 

164,015

 

Income taxes paid

(355,760

)

(10,197

)

Interest paid

(22,922

)

(32,823

)

Interest received

80,292

 

654,419

 

Net cash (outflow) from operating activities

(9,683,873

)

(11,703,909

)

     
Cash flows from investing activities    
Payments for property, plant and equipment

(138,106

)

(30,778

)

Payments for acquisition of business

 

(5,837,329

)

Payments for other non-current assets

 

(66,040

)

Net cash (outflow) from investing activities

(138,106

)

(5,934,147

)

     
Cash flows from financing activities    
Proceeds from issues of shares

489,859

 

 

Financing costs for LDA facility

(300,000

)

 

Restrinction for letter of credit

(424,955

)

 

Proceeds from line of credit

2,106,751

 

 

Repayment of line of credit

(2,668,758

)

 

Principal elements of lease payments

(91,483

)

(256,586

)

Net cash inflow (outflow) from financing activities

(888,586

)

(256,586

)

     
Net (decrease) in cash and cash equivalents

(10,710,565

)

(17,894,642

)

Cash and cash equivalents at the beginning of the period

23,300,583

 

48,255,760

 

Effects of exchange rate changes on cash and cash equivalents

(746,598

)

164,701

 

Cash and cash equivalents at end of the period

11,843,420

 

30,525,819

 

 

Contacts

U.S. Investor Relations
Chris Tyson

Executive Vice President – MZ North America

Direct: 949-491-8235

[email protected]
www.mzgroup.us

Company Investor Relations:
[email protected]

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