In-Touch Survey Systems Ltd. Announces FY 2014 Financial Results
By: Sample HubSpot User March 26, 2015
OTTAWA, Canada March 26, 2015 – In-Touch Survey Systems Ltd. (“In-Touch”) (TSXV: INX) today announced its operating and financial results for the year ended December 31, 2014.
Revenue for the year ending 2014 was $8,357,824 for continuing operations which was 16% lower than revenue of $9,964,800 in 2013. The Company previously announced that it expected account losses to impact 2014 by 25%. The Company was able to procure new business and these revenue losses are within Management’s expectations. The Company reclassified revenues of $489,611 (2013 - $692,675) as discontinued operations as its Information Management Services segment was reclassified as a disposal group.
Net earnings before income taxes were $115,348 compared to a net earnings of $406,685 reported in 2013. Gross Margin increased to 58% in 2014 compared to 57% in 2013. Company-defined adjusted EBITDA were approximately $764,000 for the year ended December 31, 2014, compared to an EBITDA of approximately $824,000 for the year ended 2013.
“We are extremely pleased with the EBITDA and net earnings performance that was achieved despite the significant change in revenues. As a percentage of revenue, EBITDA increased to 9% in 2014 compared to 8% in 2013,” said Cameron Watt, President and Chief Executive Officer.
“Over the course of 2014 a number of changes were made across the business; not only adjusting the cost structure to match the expected revenues but also to improve the focus of the business itself. 2014 saw two separate companies spun off as well as the launch of the first ever software as a service (SaaS) product. OpsMatrix has paying customers and will be a continued focus for sales, marketing and development through 2015. Additional opportunities across product lines and markets have also been identified for commercialization efforts in 2015. Monthly recurring revenue from software application licensing and user fees became a driving force for the business through 2014 and is expected to continue to set the stage for future growth,” said Watt.
| Consolidated Statements of Operations | 2014 | 2013 |
|---|---|---|
| Revenue | $ 8,357,824 | $ 9,964,800 |
| Cost of services | 3,544,287 | 4,312,556 |
| Gross profit | 4,813,537 | 5,652,244 |
| Total operating expenses | 4,549,939 | 5,228,215 |
| Earnings from operating activities | 263,598 | 424,029 |
| Finance costs | (48,250) | (44,601) |
| Gain on fair value of contingent consideration | - | 27,257 |
| Gain on dilution of assoicate | 106,680 | - |
| Share of loss from investments accounted for using the equity method | (206,680) | - |
| Net earnings from continuing operations before income taxes | 115,348 | 406,685 |
| Loss from discontinued operations | (69,752) | (133,984) |
| Net earning before income taxes | $45,596 | $272,701 |
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company’s current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information please contact:
George Pretli
Controller
gpretli@intouchinsight.com
613-270-7916