IN-TOUCH SURVEY SYSTEMS LTD. ANNOUNCES Q3 2010 FINANCIAL RESULTS WITH
SIGNIFICANT GROWTH, IN REVENUE, NET INCOME AND EBITDA
OTTAWA, Nov. 16 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces that revenue increased to $1,692,155 in Q3 2010 compared to $1,324,784 in Q3 2009 - a 28% increase. Net earnings for Q3 2010 increased 886% to $371,010 compared to $37,633 in Q3 2009. The Company-defined adjusted EBITDA increased 204% to $480,000 in Q3 2010, compared to an EBITDA of $158,000 in Q3 2009.
Electronic data collection (EDC) revenue which accounted for 59% of quarterly revenue increased 22% from $820,453 in Q3 2009 to $1,004,213 in Q3 2010. Manual data collection (MDC) revenue increased 32% in the third quarter of 2010 from $427,221 in Q3 2009 to $562,857. Gross margin also increased slightly quarter over quarter from 64% to 66%. While revenues were increasing, total operating expenses decreased by approximately 9% compared to Q3 2009. G&A expenses in particular decreased 12% as a result of the Company's continued investment in software technology that improved scalability and reduced overheads. The result was to provide the Company with the highest quarterly net income and EBITDA in history.
Year to date revenues for the first nine months of 2010 were $4,314,499, an increase of 5% compared to revenues of $4,097,575 for the same period last year. Year to date segmented revenue proportions are similar to those obtained in the third quarter. Year to date net income is $593,397 compared to a loss of $211,861 at this time last year. EBITDA of $907,000 was realized for the first nine months of this year compared to $136,000 for the same period in 2009.
"These are outstanding financial results given the challenges of the recession and the financial crises of the last two years. We expect Q4 2010 to exceed last year's performance in all key performance numbers and we are forecasting 2011 revenues to be at least 25% higher than 2010 revenues", said Michael Gaffney, Chief Executive Officer.
"For the past six years In-Touch has quietly and carefully designed, developed and deployed a robust mobile data capture technology for medium to large organizations. The core In-Touch mobile software platform ensures onsite, anywhere, anytime, and secure data capture along with an engaging interactive framework for experiential marketing or operations requirements and a powerful back-office management system with real-time monitoring and analysis tools. Our software technology will be packaged and released in a Software as a Service ("SaaS") model in 2011 and we expect these SaaS sales to be an increasing proportion of our overall revenue mix as this new product is highly scalable with no requirement for In-Touch to provide the related hardware", said Gaffney.
Consolidated Statements of Operations | |
Q3 2010 | |
Q3 2009 | ||
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Revenue | $ | 1,692,155 | $ | 1,324,784 | ||
Cost of services and goods sold | 571,959 | 477,647 | ||||
Gross profit | 1,120,196 | 847,137 | ||||
Total operating expenses | (685,750) | (746,649) | ||||
Earnings (loss) before undernoted items | 434,446 | 100,488 | ||||
Interest expense | (28,156) | (41,748) | ||||
Amortization of financing costs | - | (2,670) | ||||
Amortization of intangible asset | - | (2,522) | ||||
Change in fair value of derivative | (6,000) | - | ||||
Gain (loss) on foreign exchange | (26,324) | (15,915) | ||||
Gain (loss) on disposal of property and equipment | (2,956) | - | ||||
Net income (loss) | $ | 371,010 | $ | 37,633 | ||
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:
George Pretli
[email protected]
Controller and Corporate Secretary
613-270-7916
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