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Q1/18 Revenue Beat for Solar Power Firm, Continuing Growth Expected
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Pardeep Sangha, an analyst with Haywood Securities, reviewed this energy solutions company's first quarter financial results.

In a May 16, 2018 research note, Analyst Pardeep Sangha with Haywood Securities indicated that UGE International Ltd. (UGE:TSX.V; UGEIF:OTC) posted "strong results for Q1/18 with revenue beating our estimate and adjusted EBITDA in line with our expectations."

Q1/18 revenue was $6.1 million ($6.1M) an increase of 10% year over year and 46% quarter over quarter. It exceeded Haywood's estimate of $5.6M. Reported adjusted EBITDA was a loss of $0.1M, equal to Haywood's forecast and better than Q1/17's result of $0.2M. Gross margins in the quarter were 17.9%. "Growth was driven by strong performance in the U.S. and Philippines," Sangha explained.

As of March 31, 2018, UGE had $1.5M in cash and $7.4M in debt. Quarter-end net debt of $5.8M was $1M more than at year-end 2017.

In the near term, Q2/18 "should be a solid quarter," Sangha noted, supported by the Peterborough contract, a $41.2M project backlog and new jobs. Longer term, he projected revenue growth of 31% in 2018 and 36% in 2019.

Sangha concluded that UGE "is experiencing very strong growth and plans to report positive adjusted EBITDA for full-year 2018." Haywood, which expects the same, maintained its Buy recommendation and CA$0.80 per share target price on the company, whose stock is currently trading at around CA$0.37 per share.

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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with UGE International. Please click here for more information.
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Disclosures from Haywood Securities, UGE International Ltd., Research Report, May 16, 2018

Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.

Haywood Securities, Inc., and Haywood Securities (USA) Inc. do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts.

Analyst Certification: I, Pardeep S. Sangha, hereby certify that the views expressed in this report (which includes the rating assigned to the issuerís shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report the following Important Disclosures apply: Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for UGE International Ltd (UGE-T) in the last 12 months.

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a

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