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Farmers Edge Reviews Report Fourth Quarter and Fiscal 2020 Outcomes

Business Wire


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WINNIPEG, Manitoba — Farmers Edge Inc. (“Farmers Edge” or the “Firm”) (TSX: FDGE), a Winnipeg-based pure-play digital agriculture firm reported its monetary outcomes for the fourth quarter and yr ended December thirty first, 2020. All quantities are expressed in Canadian {dollars}. Sure metrics are non-IFRS measures or key efficiency indicators. See “Non-IFRS Monetary Measures and Key Efficiency Indicators” under.

Highlights

Elevated fiscal yr 2020 income to $45.9 million, up 93% from 2019.
December 31, 2020 Annual Recurring Income reaching $53.4 million, up 81%.
Signed strategic partnership agreements to speed up world development and scale back prices
.
Subscribed Acres grew to 23.4 million at December 31st, 2020 up 42%.
Improved fiscal EBITDA Loss by 37% and Free Money Circulation by 47%.
Generated constructive Adjusted Gross Revenuein fourth quarter.
Efficiently accomplished Preliminary Public Providing on March third, 2021.

“Regardless of the unexpected challenges many companies have skilled through the pandemic, I’m proud to say that our efficiency in 2020 provided many highlights and accomplishments that we take nice pleasure in. Our Farmers Edge crew tailored shortly to the ever-changing circumstances of the pandemic whereas persistently demonstrating a dedication to our growers and companions,” mentioned Wade Barnes, Chief Govt Officer and founding father of Farmers Edge. “Financially, we delivered top-line development whereas driving sturdy features in acres beneath subscription. Strategically, we made necessary progress increasing our partnerships in insurance coverage, imagery, Cloud and expertise providers, which is able to assist us additional advance the Farmers Edge place as a world chief in digital agriculture. We additionally efficiently accomplished an IPO to carry Farmers Edge to the general public markets elevating $117.6 million of web proceeds after deducting prices and reimbursement of shareholder debt. It was nice to expertise the help for our Firm’s imaginative and prescient. The funds give us the flexibility to speed up development and velocity up digital transformation on the farm and past.

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“We consider our sturdy data-driven, customer-centric method to digital agriculture, in tandem with sturdy strategic partnerships, offers worth to each the farmer and the expanded agricultural ecosystem. Our energy in combining deep business information and expertise with our improvement groups’ technical acumen makes our digital platform of distinctive profit to farmers and those that serve them. We assist growers obtain larger yields with fewer inputs, bettering profitability and guaranteeing sustainable meals manufacturing for a quickly rising inhabitants.”

Fiscal 2020 Monetary Highlights

  • Generated income of $45.9 million, up 93% from $23.8 million.
  • Digital agronomy options income elevated 85% to $35.5 million.
  • Enterprise analytic options income of $2.6 million grew primarily from insurance coverage associated actions.
  • Confirmed scalable enterprise mannequin and value administration with decrease EBITDA prices realized even with vital Subscribed Acres and income development that resulted in EBITDA bettering $27.2 million (37%) on $22.1 million of income development.
  • Signed new satellite tv for pc imagery (Airbus DS Geo Inc.), cloud internet hosting and expertise (Google Cloud Canada), and business insurance coverage and carbon partnership agreements.
  • Free Money Circulation improved by $45.4 million (47%) to destructive $51.3 million.

Fourth Quarter 2020 Monetary Highlights

  • Generated income of $19.1 million, up 186% from $6.7 million.
  • Digital agronomy options income elevated 214% to $11.7 million.
  • Enterprise analytic options income included carbon credit score income for the primary time within the Firm’s historical past.
  • Non-recurring business contract income was $5.7 million, a rise of $3.7 million.
  • Constructive Adjusted Gross Revenue of $7.0 million (37% margin), included non-recurring business contract income of $5.5 million, is an enchancment of $12.4 million and a good portion of the fiscal yr’s destructive Adjusted Gross Revenue enchancment of $19.9 million (2020 – $2.3 million vs 2019 – $22.2 million).
  • EBITDA lack of $4.6 million was an enchancment of $13.1 million (74%) on $12.4 million of income development.
  • Free Money Circulation improved by $20.4 million (83%) to destructive $4.1 million because the Firm advantages from its elevated scale of operations.

OPERATING HIGHLIGHTS

in hundreds, besides per share quantities

Three months ended
December 31

Yr ended
December 31

2020

2019

2020

2019

FINANCIAL PERFORMANCE

Revenues

$19,120

$6,696

$45,880

$23,802

Working bills (1)

23,717

24,425

92,851

97,987

EBITDA

$(4,597)

$(17,729)

$(46,971)

$(74,185)

Adjusted EBITDA

$(3,512)

$(17,729)

$(45,886)

$(74,185)

Internet loss

$(17,078)

$(34,104)

$(84,633)

$(117,960)

Loss per share – fundamental & diluted (2)

$(1.55)

$(3.46)

$(8.01)

$(11.97)

Free Money Circulation

$(4,081)

$(24,518)

$(51,257)

$(96,631)

2020

2019

FINANCIAL POSITION as at December thirty first

Complete property

$79,484

$77,492

Complete long-term liabilities

$4,760

$3,908

2020

2019

KEY PERFORMANCE INDICATORS as at December thirty first

Complete Subscribed Acres

23,357

16,523

Annual Recurring Income (ARR)

$53,421

$29,521

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(1) Working Bills embrace Value of income, Knowledge and expertise infrastructure bills, Promoting and advertising bills, Product analysis and improvement bills, and Common and administrative bills as set out on the Firm’s Statements of Operations and Complete Loss in its Monetary Statements.

(2) On account of web losses incurred, probably dilutive securities have been excluded from the calculation of diluted loss per share as a result of together with them could be anti dilutive.

See the Firm’s administration dialogue and evaluation and audited consolidated monetary statements for the years ending December 31, 2020 for extra info on the interval’s outcomes which can be found on the Firm’s web site ( www.farmersedge.ca/investor-relations/) and on SEDAR ( www.sedar.com).

Throughout This fall, the Firm shaped a strategic partnership with Google Cloud Canada and entered right into a multi-year contract for cloud internet hosting providers. Collectively the companions will launch a world co‑promote initiative to ship the subsequent era of digital agricultural expertise instruments to growers and companions globally. Farmers Edge additionally entered into a brand new multi‑yr contract with Airbus DS Geo Inc. because the Firm’s satellite tv for pc imagery supplier which is able to scale back the price of imagery by 60% starting in 2021. The mixed affect of those new contracts is estimated to be a discount of roughly $15 million on an annualized foundation primarily based on 2020 precise prices.

Moreover, in This fall, Farmers Edge accomplished its first sale of carbon credit to a company North American energy producer as a part of Alberta’s regulated carbon program. This sale makes Farmers Edge solely one among three corporations in North America who’ve offered carbon credit coming from growers’ operations in a regulated market. Farmers Edge is increasing this distinctive Carbon Program on the energy of the sturdy and verifiable knowledge made doable via the corporate’s fertility and digital options.

In 2020, the Firm launched the “Progressive Grower” program to advertise the adoption of its Sensible Answer, a full-service digital bundle that has attracted new growers and considerably contributed to rising the Subscribed Acres to 23.4 million as at December 31, 2020 (2019 – 16.5 million). Moreover, the Firm launched a brand new stream of income enhancing alternatives beneath its enterprise analytics options, which expands its scope of market past the farm, partnering with world insurance coverage, reinsurance, and different outstanding agriculture business members, together with Munich Re, ProAg, Hudson Insurance coverage Group, and Fairfax Brasil Seguros Corporativos S/A.

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Non-IFRS Monetary Measures and Key Efficiency Indicators

This press launch makes reference to sure non-IFRS measures and key efficiency indicators (“KPIs”). These measures aren’t acknowledged measures beneath IFRS and would not have a standardized that means prescribed by IFRS and are subsequently unlikely to be similar to related measures introduced by different corporations. Relatively, these measures are offered as extra info to enhance these IFRS measures by offering additional understanding of our outcomes of operations from administration’s perspective. Accordingly, these measures shouldn’t be thought of in isolation nor as an alternative choice to evaluation of our monetary info reported beneath IFRS. We make reference to the next non-IFRS measures: “Adjusted Gross Revenue”, “EBITDA”, “Adjusted EBITDA” and “Free Money Circulation”. This press launch additionally makes reference to “Annual Recurring Income” or “ARR” and “Subscribed Acres”, that are working metrics utilized in our business. These non-IFRS measures and KPIs are used to offer traders with supplemental measures of our working efficiency and thus spotlight tendencies in our core enterprise that won’t in any other case be obvious when relying solely on IFRS measures. We additionally consider that securities analysts, traders and different events steadily use non-IFRS measures within the analysis of issuers. Our administration additionally makes use of non-IFRS measures and KPIs to be able to facilitate working efficiency comparisons from interval to interval, to organize annual working budgets and forecasts and to find out elements of administration compensation. Definitions of those non-IFRS measures and KPIs, in addition to a reconciliation of the non-IFRS measures to their most instantly comparable measures calculated in accordance with IFRS, could be discovered beneath the heading “Key Efficiency Indicators and Non IFRS measures” within the Firm’s administration dialogue and evaluation filed in the present day, March 29, 2021, which is accessible on the Firm’s web site ( www.farmersedge.ca/investor-relations/) and on SEDAR ( www.sedar.com).

About Farmers Edge

Farmers Edge is main the subsequent agricultural revolution with the business’s broadest portfolio of proprietary technological improvements, spanning {hardware}, software program, and providers. Powered by a novel mixture of linked area sensors, synthetic intelligence, large knowledge analytics, and agronomic experience, the Firm’s digital platform turns knowledge into actions and clever insights, delivering worth to all stakeholders of the agricultural ecosystem. Farmers Edge disruptive applied sciences speed up digital transformation on the farm and past, defending our world assets and guaranteeing sustainable meals manufacturing for a quickly rising inhabitants.

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For extra info, please go to www.farmersedge.ca and SEDAR ( www.sedar.com).

Ahead-Wanting Info

This press launch could comprise forward-looking info throughout the that means of relevant securities laws. Such info consists of, however just isn’t restricted to, statements associated to the Firm’s anticipated outcomes and future price financial savings and its future enterprise prospects, partnerships and alternatives, together with the deliberate additional enlargement into the carbon credit score market, and the anticipated advantages therefrom. Phrases resembling “count on,”, “anticipate”, “intend,”, “could,”, “will”, “estimate” and variations of such phrases and related expressions are meant to establish such forward-looking info. This info relies on the Firm’s affordable assumptions and beliefs in gentle of the knowledge presently accessible to it and the statements are made as of the date of this press launch. Ahead-looking info relies on various assumptions and is topic to various dangers and uncertainties, lots of that are past the Firm’s management, that might trigger precise outcomes and occasions to vary materially from these which might be disclosed in or implied by such forward-looking info. Such assumptions, dangers and uncertainties embrace, however aren’t restricted to, the elements mentioned beneath “Ahead-Wanting Info” and “Threat Elements” within the Firm’s Annual Info Kind dated in the present day, March 29, 2021 and beneath the “Threat Elements” part within the Firm’s administration dialogue and evaluation filed in the present day, March 29, 2021, every of which can be found on the Firm’s web site ( www.farmersedge.ca/investor-relations/) and on SEDAR ( www.sedar.com). The Firm cautions that the checklist of danger elements and uncertainties just isn’t exhaustive and different elements may additionally adversely have an effect on the Firm’s outcomes. Readers are urged to contemplate the dangers, uncertainties and assumptions related to these statements rigorously in evaluating the forward-looking info and are cautioned to not place undue reliance on such info. The Firm doesn’t undertake any obligation to replace such forward-looking info, whether or not on account of new info, future occasions or in any other case, besides as expressly required by relevant regulation.

View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20210329005814/en/

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Contacts

Farmers Edge Inc.

David Patrick
Chief Monetary Officer
David.Patrick@FarmersEdge.ca
(204) 992-7019

Janet Eger
VP, Communications & Public Affairs
Janet.Eger@FarmersEdge.ca
(416) 999-1294

#distro

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