OTTAWA, April 1, 2021 – Intouch Insight Ltd., (“Intouch or the Company”) (TSXV: INX) (OTCQB: INXSF) today announced its operating and financial results for the year ended December 31, 2020.
Revenue for 2020 was $12,795,277, which was 34% lower than revenue of $19,255,202 in 2019 due to the impacts of the global COVID-19 pandemic, which were partially offset by the addition of PerformaLogics and MobilForce. The net loss for the year was $6,898 due to a $478,575 write down to intangible assets and goodwill compared to net earnings of $116,244 in 2019. Company-defined adjusted EBITDA was $1,667,894 for 2020, up 8% compared to EBITDA of $1,540,312 in 2019. Gross Margin grew by 1% to 53% from 52% in 2019.
“2020 started with Intouch poised for investment and significant growth. The pandemic caused a dramatic shift in priorities towards revenue retention and cost containment. Fortunately, the strength of the underlying business was evident. It allowed us to make decisions throughout the year focusing on both employee and customer retention while delivering 8% more EBITDA in 2020 than in 2019 despite significant revenue losses. As a result, the company finished the year with key employees and customer contracts intact. This combined with a strong balance sheet will allow us to emerge from the pandemic with strength,” said Cameron Watt, President, and Chief Executive Officer.
“I remain incredibly proud of how our employees have handled the difficult year behind us, and we all look forward to working closely with our long-standing client base as the North American economy continues to recover. Intouch will remain strong throughout 2021 while taking advantage of the opportunities that will inevitably come our way as the year unfolds,” said Watt.
Consolidated Statements of Operations
| 2020 | 2019 | |
| Revenue | $ 12,795,277 | $ 19,255,202 |
| Cost of services | 6,054,518 | 9,292,174 |
| Gross margin | 6,740,759 | 9,963,028 |
| Total operating expenses | 6,796,847 | 9,426,893 |
| Earnings (loss) from operating activities | (56,088) | 536,135 |
| Other earnings (expense) | 44,578 | (75,831) |
| Deferred tax expense | - | (293,374) |
| Income taxes recovery (expense) | 4,612 | (50,686) |
| Net earnings (loss) | $ (6,898) | $ 116,244 |
About Intouch Insight
Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Through its flagship SaaS product, LiaCX®, Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions. For more information, visit intouchinsight.com.
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 further information, please contact:
Cathy Smith
Chief Financial Officer
csmith@intouchinsight.com
613-270-7916