Intouch Insight Ltd. announces Q2 2016 financial results with 57% growth

OTTAWA, Aug. 24, 2016 /CNW/ - Intouch Insight Ltd. ("In-Touch") (TSXV: INX) today announced its operating and financial results for the quarter ended June 30, 2016.

Revenue for the second quarter was $3,514,718, which was 57% higher than revenue of $2,234,662 in the same quarter 2015. Recurring revenue increased 18% during the second quarter at $565,620 compared to $480,276 in second quarter 2015. Services revenue increased 68% over the same time period from $1,754,386 to $2,949,098.

Earnings from operating activities increased 54% for Q2 2016 to $155,168 an increase of $54,080 compared to $101,088 in Q2 2015. Net earnings before income taxes for the second quarter was $115,841 compared to net earnings before income taxes of $69,973 in the same quarter 2015. Gross Margin decreased to 52% in the second quarter compared to 54% for the same quarter in 2015. The decrease in gross margin is attributed to product mix shift.

Company-defined adjusted EBITDA increased 27% to $332,000 for the second quarter, compared to an EBITDA of $262,000 for the same quarter in 2015.

"We are pleased with the outcome of the quarter having delivered the highest Q2 revenue in the history of the company.  We are also very happy to have delivered net earnings & EBITDA despite significant investments in marketing and product development.  We will continue to invest in product development throughout 2016 as we transition our acquired and legacy technology platforms to a common standard alongside our newer product lines." said Cameron Watt, President & Chief Executive Officer. 

"We are also investing in developing product extensions as well as new sources of recurring revenue.  We are very optimistic about the direction of our product suite and are excited about the future possibilities for the company.", said Watt.

Consolidated Statements of Operations						Q2 2016			Q2 2015
Revenue					$	3,514,718		$	2,234,662
Cost of services						1,677,818			1,036,201
Gross profit						1,836,900			1,198,461
Total operating expenses						1,681,732			1,097,373
Earnings from operating activities						155,168			101,088
Finance costs						(24,327)			(11,552)
Portion of associate expenses						(15,000)			(19,563)
Net earnings before income taxes					$	115,841		$	69,973

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