In-Touch Survey Systems Ltd. Announces Q1 2015 Financial Results
By: Sample HubSpot User May 29, 2015
OTTAWA, Canada May 28, 2015 – In-Touch Survey Systems Ltd. (“In-Touch”) (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2015.
Revenue for the first quarter was $2,311,430, which was 6% higher than revenue of $2,174,762 in the same quarter in 2014. Recurring revenue increased 29% during the first quarter at $449,876 compared to $348,335 in first quarter 2014. Services revenue was slightly higher quarter over quarter.
Earnings from operating activities increased 181% for Q1 2015 to $192,083 an increase of $123,713 compared to $68,370 in Q1 2014. Net earnings before income taxes for the first quarter increased 141% to $140,613 compared to net earnings before income taxes of $58,299 in the same quarter in 2014. Gross Margin decreased to 56% in the first quarter compared to 58% for the same quarter in 2014. The decrease in gross margin is attributed to product mix shift.
Company-defined adjusted EBITDA increased 105% to $334,000 for the first quarter, compared to an EBITDA of $163,000 for the same quarter in 2014. “We are pleased with the outcome of the quarter, particularly the strong growth in recurring revenue from software licensing and user fees. It is great to be in a position to deliver strong sales and profits from existing business lines while new products are being developed and launched. We expect continued success in our new and existing product lines along with positive EBIDA and double digit revenue growth for the remainder of 2015.” said Cameron Watt, President & Chief Executive Officer.
“We remain committed to our investment in obtaining recurring software revenue and anticipate additional investments to be made throughout the year to ensure 2015 results while setting up the organization for an even greater future", said Watt. “We would also like to inform our shareholders that since we began repurchasing our common shares through our Normal Course Issuer Bid, we have purchased and cancelled 637,500 shares representing 4.2% of the outstanding balance, for the amount of $151,597”, said Watt.
| Consolidated Statements of Operations | Q1 2015 | Q1 2014 |
|---|---|---|
| Revenue | $ 2,311,430 | $ 2,174,762 |
| Cost of services | 1,012,694 | 902,598 |
| Gross profit | 1,298,736 | 1,272,164 |
| Total operating expenses | 1,106,653 | 1,203,794 |
| Earnings from operating activities | 192,083 | 68,370 |
| Finance costs | (12,654) | (10,071) |
| Loss on transactions with associate | (33,888) | - |
| Share of loss from investments accounted for using the equity method | (4,928) | - |
| Loss from discontinued operations | - | (29,127) |
| Net earning before income taxes | $140,613 | $29,172 |
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