Bluedrop Releases Q3 2016 Financial Results

Q3 Revenues and Earnings Continue Strong Trend for 2016

ST. JOHN’S, Newfoundland and Labrador--()--Bluedrop Performance Learning (“Bluedrop”) (TSX-V:BPL) today reported its financial results for the three months ended June 30, 2016.

Revenue for the three months ended June 30, 2016 was $5.9 million, up from $5.4 million, an increase of 10% on the same period in the previous year. Gross profit for the period was $2.6 million, an increase of $0.4 million over the three-month period ended June 30, 2015. Pre-tax income was $0.4 million for the three-month period compared to a loss of $0.4 million in the same period in the previous year. After tax income for the period was $0.2 million compared to after tax loss of $0.4 million for the same period in the previous year.

Revenues increased in both business units versus last year with the largest percentage increase in the Learning Networks business unit at a year over year increase of 22% and an 8% increase in year over year revenues for the Training and Simulation business. Consolidated gross margins remained strong in the quarter at $2.6 million or 45%, up slightly from the previous year. Consolidated expenses for the quarter were down $0.5 million from that of the same quarter in the previous year notwithstanding that investment in Research and Development increased in the quarter this year. Net investment in Research and Development in the quarter this year was reduced as a result of strong offset funding recognized from various Government and other funding programs.

Bluedrop continued its investment trend in its Research and Development efforts with over $1.0 million of investment in the quarter. The Training and Simulation business unit invested $0.7 million in the quarter. This investment was expensed in the quarter but was offset by an equal amount from our fully funded deferred development Boeing contract and therefore had no effect on pre-tax income. The Learning Networks business unit invested $0.4 million in the quarter for costs mostly associated with enhancements to the in service Bluedrop 360 platform. This investment net of related government assistance was expensed in the quarter.

For further details, please see the Financial Statements and Management’s Discussion and Analysis for the quarter ended June 30, 2016 which are available on the Company’s web site at www.bluedrop.com or on SEDAR at www.sedar.com.

Commenting on the results and year to date progress of Bluedrop, Founder and CEO Emad Rizkalla said “It was another strong quarter for Bluedrop financially and operationally. I was especially pleased to see the year over year revenue growth in the Learning Networks business unit. That unit is very busy with some large deliverables. While we had hoped to meet a few more revenue milestones in the quarter, I feel confident they will be achieved before year end. The Training and Simulation group achieved a major milestone for the Boeing rear crew mission trainer in the quarter and we remain excited about that programs potential. The demonstration unit is on schedule to be delivered to Boeing by end of calendar year. We saw some large contracts announced in the quarter including a US$13 million contract renewal with Sikorsky and excellent pipeline opportunities for both groups. We continued to pay down debt while still aggressively investing in our R&D. Overall we are very pleased with the quarter and the year to date results and excited about our progress on our new product strategy. I am enormously proud of the Bluedrop team. Their passion and commitment to making a difference is the source of our success.”

About Bluedrop

Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Bluedrop is transforming the workplace globally by designing, developing and delivering practical, actionable and affordable training content and delivery platforms that improve individual and overall performance of organizations. For more information, visit www.bluedrop.com.

This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2015. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts

Shanelle Clowe
Marketing/Communications
Bluedrop Performance Learning Inc.
shanelleclowe@bluedrop.com
Phone: 709-699-2902

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