Renavotio
Announces First Quarter 2021
Results
Well Positioned for Infrastructure Project
Opportunities
Tulsa, OK -- May 14, 2021 -- InvestorsHub NewsWire
-- Renavotio, Inc. (OTCQB:
RIII) (the "Company"), a holding company focused on
infrastructure opportunities including personal protective
equipment, 5G, utility construction, utility management, IoT,
water, waste management technology, and related industries, today
announced the Company's financial results for the first quarter
ended March 31, 2021.
Key Highlights for Q1 2021 and
Year-to-Date
- Revenue of $0.37
million
- Gross profit of $0.15 million, with gross
margin of 39.3%
- Total assets grew 79.5% to $8.4 million
compared to December 31, 2020
- Paid off $89,000 in convertible
debt
- Prepaid expenses of $3.3 million for
inventory
- Initiated the strategic partnership
with VerifyMe by purchasing 2
million security labels to implement a production buy of
Medical Gloves to protect against anti-counterfeiting, tracking,
tracing and brand protection. Plans to begin implementing by the
end of the second quarter.
- Secured a $2.15 million initial purchase
order from a PPE supplier for boxes of surgical gloves,
which order is subject to the buyer's product inspection and final
60% payment
- Secured an additional $1.8 million
purchase order from a PPE medical distributor for surgical
gloves, the order of which is subject to the buyer's product
inspection and final payment
Management
Commentary
Billy Robinson, Renavotio's Chief Executive
Officer, commented, "The first quarter was very eventful for
Renavotio, as we put the pieces together towards building a
well-positioned company that's addressing market opportunities in
infrastructure, especially if there is significant interface with
the upcoming infrastructure bill. We managed to secure large-scale
PPE purchase orders, worth over $3.9 million that has been
invoiced. We also paid off $89,000 in convertible debt outstanding
to strengthen our capitalization. While our business continues to
grow and deliver results, I am happy with the business flow we are
witnessing that can potentially expand our geographic footprint, as
well as provide opportunities in 5G installation and outsourced
utility management. "
Mr. Robinson continued, "We plan to actively
participate in public sector capital spending that may be fueled by
the upcoming infrastructure bill. The President's plan to use the
Defense Production Act to its fullest capacity is designed to help
solve the widespread weaknesses of the PPE supply chain, including
to ensure the availability of COVID-19 related supplies. President
Biden's plans to use the Defense Production Act to meet the current
demand of PPE may also increase stockpiles of PPE to lessen the
impact of future shortages, while expanding American manufacturing
capability so the United States is not dependent on other countries
in a crisis. We remain confident in our business outlook as we see
improved demand for our products and services, which would be
enhanced contingent upon the passage and the contents of a national
infrastructure bill. While we closely follow developments on the
infrastructure front, we are well-positioned to do our part on
these public works projects given the long-standing experience and
quality that our team is known for
delivering."
Financial Results for the First Quarter
Ended March 31, 2021
Revenue for the first quarter ended March 31, 2021
was $0.4 million, compared to nil for the first quarter ended March
31, 2020, which is incomparable because of the Infratech and
Utility Management acquisitions in the second half of 2020. For the
first quarter of 2021, revenue consisted of $0.02 million from
Personal Protective Equipment, $0.08 million from Construction,
$0.24 million from Management and $0.03 million from Repair &
Maintenance.
Gross profit for the first quarter ended March 31,
2021 was $0.15 million, compared to nil for the first quarter ended
March 31, 2020. The resulting gross margin was 39.3% for the first
quarter ended March 31, 2021, which is not comparable to the first
quarter ended March 31, 2020 because of the Infratech and Utility
Management acquisitions. in the second half of
2020.
General and administrative expenses were $0.5
million for the first quarter ended March 31, 2021, an increase of
$0.4 million, compared to $0.1 million for the first quarter ended
March 31, 2020, due to the Infratech and Utility Management
acquisitions during the second half of 2020. General and
administrative expenses as a percentage of revenues for the three
months ended March 31, 2021 and 2020 were 138%, and 100%,
respectively.
Depreciation expense was $0.2 million for the
first quarter ended March 31, 2021 on the assets acquired as part
of the UMC acquisition during the second half of
2020.
During the three months ended March 31, 2021, the
Company had other income totaling $353,967 from relief payments
made under the CARES Act for principal and interest on SBA notes
payable. During the three months ended March 31, 2021, the Company
incurred $95,837 in interest expenses and $50,000 in expenses
related to its debt obligations.
Operating loss three months ended March 31, 2021
was $0.5 million, compared to an operating loss of $0.1 million for
the three months ended March 31, 2020.
Net loss for the first quarter ended March 31,
2021 was $0.3 million, an increase of $0.2 million, compared to
$0.1 million for the first quarter ended March 31,
2020.
About Renavotio,
Inc.
Renavotio, Inc. (OTCQB:
RIII) focuses on three unique infrastructure opportunities,
including medical protective equipment, 5G, utility construction,
utility management, IoT, water, waste management technology, and
related industries.
The Company's wholly owned subsidiary, Renavotio
Infratech, Inc. ("RII"), includes business and acquisition
strategies concentrating on medical protective equipment and
infrastructure with utility construction and consulting/operational
agreements with small towns or county CO-OPS that operate their own
water and sewer systems, providing long-term savings, utilizing
smart-utility monitoring, and dedicated engineering and service
personnel. These platforms capture utility data from hand-held GPS
devices or in-place sensors, with planned use of drones to identify
waste contamination, leak detection, and topographic underground
utility installation planning. RII's wholly owned subsidiary,
Utility Management Corp, is a holding company focused on
infrastructure, 5G, utility construction, utility management, IoT,
water and waste management technology, and related industries.
Utility Management Corp's subsidiary, Utility Management and
Construction (UMCCO) is an engineering and smart utility management
company that provides a one-stop solution to rural communities to
reduce the consumption of electricity, data, natural gas, and water
utilities for commercial, industrial and municipal end users.
UMCCO's unique approach creates immediate bottom-line savings for
its clients, by providing engineering, planning, permitting and
installation through their second wholly owned subsidiary, Cross-Bo
Construction, which specializes in water, sewer, Telcom, and 5G
design and installation, establishing a long-term value proposition
while also achieving respective sustainability goals. www.umcco.com
For additional information on Renavotio, please
click: www.renavotio.com
Forward Looking
Statement
This news release includes certain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors may cause the
actual results and future events to differ materially from those
expressed or implied by such forward-looking statements. Such
factors include general business, economic, competitive,
regulatory, capital markets, political and social uncertainties.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. No information in this news release should be construed
as any indication whatsoever of the Company's future stock price,
revenues, or results of operations. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Investor Contacts:
Renavotio, Inc.
601 South Boulder Ave.
Suite 600 Tulsa, OK 74119
Email Contact: brobinson@renavotio.com
Telephone: 1-888-928-1312
Skyline Corporate Communications Group, LLC
Matthew Abenante, IRC, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: 646-893-5835
Email: mabenante@skylineccg.com
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