BuildingIQ Achieves Significantly Improved Cashflows in 2Q2016
Sydney – 28 July 2016 – BuildingIQ, a leading energy management software and services company, today lodged its Appendix 4C for the second quarter of 2016.
- Cash receipts were significantly improved from first quarter and amounted to over $1.2m for the half, representing a 33% increase from the prior comparable period in 2015.
- The receipt of the R&D grant from the Australian Tax Office in May amounted to almost $1.7m, resulting in a significant reduction in operating cash outlflow, approximately $0.7m, compared to an outflow of around $2.6m in first quarter 2016.
- A number of other factors impacted cash receipts for the period.
- Two months of receipts from the (US) Department of Energy program were received, with a further catch-up in third quarter following notification of program extension. This represents an improvement from first quarter with a further improvement expected in Q3.
- A favourable impact from the acquisition of Energy Worksite and Facility Worksite, with further improvement in the remainder of the year, after catching up the lag in initial collections immediately following acquisition.
- The true up of a significant utility program will now occur in Q3 (was potentially Q2).
Cash payments were consistent with management’s expectations, with employment costs increasing in line with the recruitment of an expanded executive leadership team following the initial public offer. A slight increase in other working capital expenditure relates to one-off expenditure relating to a previously planned relocation of our Silicon Valley office, together with a partial uplift in underlying operating expenditure. Transaction advisory costs relate to the acquisition of Energy WorkSite and Facility WorkSite and accordingly are of a non-recurring nature. The majority of BuildingIQ’s cash is held in USD resulting in a favourable FX impact on cash compared to the prior quarter.
A separate ASX release has been lodged in respect of the purchase of core technology from the CSIRO and the release of the transformational new energy intelligence platform. The payment to the CSIRO (approximately $0.5m) is a non-operating cash flow which expected to occur in the current Q3 quarter.
A further update on 2016 activities will be provided with the release of the half year results on 24 August 2016.
BuildingIQ (ASX:BIQ) helps building owners and operators worldwide lower energy use, increase building operations efficiency, and tenant comfort. The company’s 5i cloud-based platform and managed services deliver on the promise of IoT for buildings with none of the drawbacks. Over 60M square feet of building space is serviced by BuildingIQ. Investors in BuildingIQ include the Venture Capital unit of Siemens Financial Services, Paladin Capital and Exto Partners.
BuildingIQ Company Secretary
Rob Goss, +61 2 9360 0602