In-Touch Survey Systems Ltd. announces FY 2015 financial results

OTTAWA, March 30, 2016 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today announced its operating and financial results for the year ended December 31, 2015.

Revenue for the year ending 2015 was $10,232,708 from continuing operations, which was 22% higher than revenue of $8,357,824 in 2014. Included in Q4 2015, are revenues of $1,119,387 as a result of its acquisition of Statopex Inc. The Company previously announced that it expects 2016 revenues to increase by 40%.

Net earnings before income taxes were $313,543 compared to net earnings of $115,348 reported in 2014. Gross Margin decreased to 55% in 2015 compared to 58% in 2014.

Company-defined adjusted EBITDA were approximately $1,115,000 for the year ended December 31, 2015, compared to an EBITDA of approximately $765,000 for the year ended 2014.

"We are extremely pleased with the overall performance of the company throughout 2015 as we were able to invest significantly in new software products while delivering strong growth to both revenue and net earnings.  This performance, combined with EBITDA of over a million dollars positions the company well to continue the investment in its future," said Cameron Watt, President and Chief Executive Officer. 

"As seen through our recent re-branding efforts, In-Touch is focused on collecting data and providing information back to our clients to help them with business improvements.  Whether we are collecting sales leads for them, determining the satisfaction of their existing customers, checking on the compliance within their own organizations, or addressing their latest need we have a product to assist.  Therefore, the focus of the company continues to be creating new and improving methods and technologies to improve our products and ensure that we are following the trends in the markets that we service.  We will continue to seek out ways to take advantage of additional sales to our growing client base while actively pursuing recurring revenue through our improving software capabilities," said Watt. 

Consolidated Statements of Operations				2015			2014
Revenue				$	10,232,708		$	8,357,824
Cost of services				4,616,741			3,544,287
Gross profit				5,615,967			4,813,537
Total operating expenses				5,155,315			4,549,939
Earnings from operating activities				460,652			263,598
Finance costs				(65,661)			(48,250)
Gain (loss) on transactions with associate				(48,888)			106,680
Share of loss from investments accounted for using the equity method				(32,560)			(206,680)
Net earnings from continuing operations before
income tax				313,543			115,348
Loss from discontinued operations				-			(69,752)
Net earnings before income taxes				$	313,543		$	45,596

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.

SOURCE In-Touch Survey Systems Ltd.

George Pretli, Chief Financial Officer, [email protected], 613-270-7916