In-Touch Survey Systems Ltd. announces annual financial results

OTTAWA, April 30 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces that revenue declined 7% to $5,479,081 in FY 2009 compared to $5,914,814 in FY 2008. Net loss for 2009 was $440,377 compared to a net loss of $177,206 in 2008. $400,108 of the 2009 losses were due to the operations of the Market Research segment that was acquired in 2008 and the one-time charges associated with writing this segment off. Operating income improved to become positive at $15,477 in 2009 compared to a loss of $219,483 in 2008. The non-GAAP Company-defined adjusted EBITDA, as described in the Company's Management Discussion and Analysis public filings, was $293,000 in FY 2009, compared to $276,000 in FY 2008.

"The economic downturn that began in the second half of 2008 and continued throughout 2009 provided significant challenges for the Company as over $1.3 million in orders were cancelled by major customers. However, even with the 22% cut in sales orders the Company was successful in replacing 70% of the cancelled orders with new customer business," said Michael Gaffney, Chief Executive Officer.

"We continue to be optimistic about the future even though the economic challenges of 2008-2009 are still impacting 2010. Initial revenue forecasts for Q1 2010 are slightly ahead of Q1 2009 revenue forecasts but the Company cautions that the economy is still very unpredictable. Because of the Company's significantly improved cost structure and new scalable technology, we expect to be net income positive if revenue levels are similar to 2009. After a very challenging year this is a very big accomplishment," said Gaffney.

    
    Consolidated Statements of Operations            2009          2008
                                                -------------- --------------

    Revenue                                      $  5,479,081   $  5,914,814

    Cost of services and goods sold                 2,200,533      2,321,746
                                                -------------- --------------

    Gross profit                                    3,278,548      3,593,068
    Total operating expenses                        3,263,071      3,812,551
                                                -------------- --------------
                                                -------------- --------------
    Earnings (loss) before undernoted items            15,477       (219,483)
    Interest expense on short term debt               (23,996)       (20,659)
    Interest expense on long term debt               (109,300)       (83,558)
    Interest on capital leases                        (21,465)       (11,245)
    Amortization of financing costs                   (10,682)       (18,581)
    Amortization of discount on promissory
     note                                                   -        (55,019)
    Amortization of intangible asset                   (9,596)       (34,123)
    Change in fair value of derivative                (33,956)        94,096
    Gain (loss) on foreign exchange                   (85,422)       119,055
    Gain on disposal of property and equipment         12,745         50,311
    Other income                                            -         22,000
    Impairment of franchise                           (31,193)             -
    Impairment of intangible assets and
     goodwill                                        (142,989)             -
                                                -------------- --------------
    Net loss                                     $   (440,377)  $   (177,206)
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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.

The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.

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For further information: Michael Gaffney, [email protected], Chief Executive Officer, [phone]