Business
Powerband Releases Q1 2019 Results; Posts Record Revenue for The Quarter; Provides Corporate Update
VANCOUVER, BC / ACCESSWIRE / May 28, 2019 / PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWW...
About this update from Ameritrust Financial Technologies Inc.
[{"type":"text","content":"Powerband Releases Q1 2019 Results; Posts Record Revenue for The Quarter; Provides Corporate UpdateVANCOUVER, BC / ACCESSWIRE / May 28, 2019 / PowerBand Solutions Inc. (TSXV: PBX) (OTCQB: PWWBF) (Frankfurt: 1ZVA) (\"PowerBand\", \"PBX\" or the \"Company\"), a leading online automotive auction, remarketing and vehicle acquisition and sales platform in North America, is pleased to announce that it has released its 2019 first quarter financial results. During the period the Company generated over CAD$550,000 in revenue, with a gross margin of $82,500 and a net loss of approximately $370,000, as compared to approximately CAD$10,000 in revenue in the same period in 2018, with a gross margin of $1,500 and a net loss of approximately $2,980,000. The Company anticipates strong revenue growth to continue in the second quarter of 2019.\"I am excited to announce our first quarter financial and operational results,\" said President and COO Mike Moen. \"After a restructuring period of six months we were able to reduce our monthly burn rate from approximately CAD$350,000 to CAD$150,000. We closed down our Western Canada operations and reduced headcount as we refocused the business in Ontario on the North-South used car market and the D2D Auto Auctions (\"D2D\") partnership. We are now executing on our strategic initiatives in the United States where we have access to over 2,500 dealerships in D2D's network, 8,500 dealers with Dealer Socket, and over 19,000 dealers with RouteOne. Based on our internal projections our recently granted Exporter Licence will enable us to double first quarter revenue, targeting over CAD$1,000,000 in revenue from the projected sale of 40 used vehicles at an average sales price of $25,000, with earnings of $100,000, based on a projected gross margin of 10%, from the cross-border purchase and sale of used vehicles. In the first quarter we launched over CAD$2.1 million in vehicle auctions with our dealer partners in Ontario, with the value of sold vehicles exceeding $500,000. Assuming we had our Export Licence in place in the first quarter, revenue generated could have included the value of all vehicles launched through the PowerBand Exchange platform. I am also excited to announce last week we moved our first vehicle carrier (CAD$150,000) to the United States. We are now aggressively implementing our growth strategy ...