OTTAWA, Canada March 23, 2017 – Intouch Insight Ltd., formerly In-Touch Survey Systems Ltd., (“Intouch”) (TSXV: INX) today announced its operating and financial results for the year ended December 31, 2016.
Revenue for the year ending 2016 was $13,349,391, which was 30% higher than revenue of $10,232,708 in 2015.
Earnings before income taxes were $212,945 compared to earnings of $313,543 reported in 2015. Gross Margin decreased to 53% in 2016 compared to 55% in 2015 as the acquisition of Statopex Inc. increased our volume in the lower margin product lines.
Company-defined adjusted EBITDA were approximately $1,075,000 for the year ended December 31, 2016, compared to an EBITDA of approximately $1,115,000 for the year ended 2015.
“We are extremely pleased with the overall performance of the company throughout 2016 as we were able to invest significantly in our software products and underlying technologies while delivering strong growth to recurring revenues and significant EBITDA. This performance allows the company to remain focused on its plan for the future,” said Cameron Watt, President and Chief Executive Officer.
“We now have visibility into the results of our continued investment in product development, in particular, our ability to secure long-term sustainable recurring revenue. While our focus on increasing recurring revenue from software license & user fees will continue, we will also focus on increasing our recurring revenue across the entire business. Each of our offerings is positioned for long-term relationships with the clients we serve. We retained over 96% of the client revenue from 2015 through 2016. Because of a strong history with our client base, our goal is to extend the customer tenure timeframe even longer through an improved product suite. In 2017 will see an increased investment against sales and marketing efforts to ensure that we can take full advantage of the competitive position that we now find ourselves in,” said Watt.
| Consolidated Statements of Operations | 2016 | 2015 |
|---|---|---|
| Revenue | $ 13,349,391 | $ 10,232,708 |
| Cost of services | $ 6,294,697 | $ 4,616,741 |
| Gross profit | $ 7,054,694 | $ 5,615,967 |
| Total operating expenses | $ 6,780,554 | $ 5,155,315 |
| Earnings from operating activities | $ 274,140 | $ 460,652 |
| Finance costs | $ (92,195) | $ (65,661) |
| Gain (loss) on transactions with associate | $ (15,000) | $ (48,888) |
| Share of loss from investments accounted for using the equity method | - | $ (32,560) |
| Negative goodwill | $ 46,000 | - |
| Net earnings before income taxes | $ 212,945 | $ 313,543 |
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
Chief Financial Officer
gpretli@intouchinsight.com
613-270-7916