ST. JOHN’S, Newfoundland and Labrador — BPLI Holdings Inc. (“BPLI” or “the Company”) (TSX-V:BPLI) today reported its financial results for the three months ended December 31, 2020.

BPLI consolidated revenue for the three months ended December 31, 2020 was $7.0 million, up from $6.1 million for the same period in the previous year, an increase of 13%. Gross profit for the period was $3.7 million, an increase of $0.5 million over the three-month period ended December 31, 2019. Pre-tax income was $0.1 million for the current quarter compared to $1.4 million for the same period in the previous year. After tax income for the three months ended December 31, 2020 was nil compared to $0.8 million for the same period in the previous year.

The Bluedrop Training and Simulation business unit revenues were $5.2 million, up from $4.8 million for the same period in the previous year. Revenues from Courseware development services and in-service support were up $0.8 million for the period. Revenues from simulation products were down by $0.3 million for the period. Gross profit was $2.3 million for the three-month period ended December 31, 2020, consistent with the previous year. Expenses for the quarter were up $1.1 million from the same quarter in the previous year. Pre-tax income was $0.5 million for the current quarter compared to $1.6 million for the same period in the previous year.

The Bluedrop Learning Networks business unit revenues were $1.8 million, up from $1.3 million for the same period in the previous year. Revenues from Software licencing and subscriptions increased to $1.6 million up from $1.0 million while Courseware development services were down $0.2 million from the same period the previous year. Gross profit was $1.3 million for the three-month period ended December 31, 2020, an increase of $0.4 million over from the same quarter in the previous year. Expenses for the quarter were down $0.1 million from that of the same quarter in the previous year. Pre-tax income was $0.1 million for the current quarter compared to a loss of $0.4 million for the same period in the previous year.

The Company had positive cash flow from operating activities and ended the quarter with cash on hand of $7.3 million.

The Company invested $2.1 million in the quarter and $7.0 million over the last 12 months in Research and Development. The Bluedrop Training and Simulation business unit continued its investments to meet the development and delivery plans for the new crew training simulators and related software solutions. The Bluedrop Learning Networks business unit continued its investments to develop additional features and scalability capabilities for its SaaS platform.

The Company noted that while the ongoing COVID-19 global pandemic has created additional risk and uncertainty around future plans and activities, the pandemic has had minimal disruption to most of the Company’s ongoing operations as of the current date. There is added uncertainty for various simulation product deliveries and schedules due to travel restrictions and potential procurement delays as a result of the pandemic.