Posera Announces Third Quarter of 2019 Financial Results
TORONTO, Nov. 15, 2019 /CNW/ - Posera Ltd. (TSX : PAY) ("Posera" or the "Company"), a leading provider of hospitality software and payment solutions, today announced its financial results for the three and nine months ended September 30th, 2019.
During the three-months ended September 30, 2019, Posera reported total revenues of $1.73 million compared to total revenues of $2.33 million and $2.00 million for the three-months ended September 30, 2018 and June 30, 2019 respectively. The decrease in revenues year over year is driven largely by a reduction in KDS sales, given there was a large customer deployment of KDS units in the prior year, which helped boost revenues during the three-months ended September 30, 2018.
Posera increased its recurring revenue by 5% to $0.87 million during the third quarter of 2019, compared to $0.83 million during the three-months ended September 30, 2018. The increase resulted from growth in sales of all of Posera's recurring revenue products.
Posera incurred a normalized EBITDA loss of $0.69 million for the three-months ended September 30, 2019 compared to a normalized EBITDA loss of $0.36 and $0.70 million for the three-months ended September 30, 2018 and June 30, 2019 respectively. Although the Company made further reductions to some of its controllable operating costs, primarily general and administrative expenses, the lower quarterly revenues led to the rise in normalized EBITDA loss.
Key Quarterly Achievements
- New User Interface of Maitre'D POS – Posera announced the release of an all-new user interface for its Maitre'D POS solution. The Maitre'D Back-Office UI has also received a refresh, with employee management, cost-tracking, and comprehensive insights all currently available in a new, intuitive graphic user interface. New operational highlights of the user Interface include interactive maps for the delivery module and per-guest detailed table order itemization for faster, error-free payment reconciliations. This latest release constitutes the largest release for the Maitre'D product in the last five years and achieves the goal of improving end-user experience and increasing productivity while providing the robust front-of-house capabilities and back-of-house analytics that customers depend on to operate their businesses.
- Release of the Newest Version of KDS, Kitchen Display System, to Support Table Service Restaurants – Originally designed for quick service operations, the latest release, announced by Posera in July, offers new functionalities such as station routing, meal coursing and pacing, guest paging, 35 different screen options, and enhanced real-time activity data and alerts, all features in demand by kitchens across food-service establishments.
- Cellar Management Capability – Posera announced an integration of Alfred Pro cellar management platform with Maitre'D POS for hospitality industry operations with extensive wine collections. The integration provides a consolidated tool to easily and swiftly manage and maintain cellar inventory.
- SecureTablePay's Launching with Next-Generation Devices – SecureTablePay has completed its redevelopment for the US market. Now with a new technology, new architecture, and a new user-interface, the pay-at-the-table platform has been launched in the US, operating on 3 new next-generation devices, and with several live installations in the field.
- Reseller Roadshows – In Q3, Posera hosted and met with over 50 of its key reseller partners across North America. The events were designed to re-engage with the resellers and introduce the new Maitre'D, KDS and SecureTablePay products and their new features. The new Maitre'D was received with great enthusiasm and positive reviews by the resellers. Posera also shared its future product and business model plans with the resellers, and then with resellers' feedback, insights and support, Posera subsequently launched its new SaaS business model, which was announced in November.
"The third quarter was filled with much excitement, some disappointment, and lots of promise," said Dan Poirier, Chief Executive Officer of Posera. "We are very excited that as a result of a year-long effort, we have completely renewed our flagship Maitre'D solution, restructured the KDS system, and totally rebuilt the SecureTablePay product. We are disappointed, though, that during this period, naturally, Posera's sales slowed as we developed and honed our products to be ready for the market. We are energised, however, by all the promise and opportunity of our new and improved products, such as the recently announced Mobile POS, which is now available and deployed in the field."
The end of Q3 marked the realization of the efforts and investment of the quarter, and quarters before it: a new and reinvented Posera product line. In addition to all the latest exciting features and functionalities, Posera has also recently announced The Maitre'D TOTAL Experience, a new SaaS subscription. "We believe that The Maitre'D Total Experience will bring Maitre'D back to the forefront of hospitality technology," said Tom McCole, Chairman of the Board of Posera. "For years. Maitre'D has been known for its stability and richness of features. Now, Maitre'D also has mobile and cloud capabilities, all the latest features, and is available in an easy to adopt SaaS package, offering merchants a powerful solution and affordability – the best of both worlds."
As Posera repositions its products and re-establishes its position at the forefront of hospitality technology, Posera has also continued the strategic review process. "Much of Posera's energy this year has been spent on conducting a strategic review process," said Akash Sahai, Executive Vice President, Strategy and Business Development, at Posera. "We agree with the assessment of our financial advisors, BDO, that privatisation is an appropriate strategy for Posera. We have reviewed several offers of interest to privatise Posera and have engaged in discussions with several interested parties. We believe we are nearing the end of the strategic review process and should be able to make an announcement about a significant strategic partnership soon."
Conference Call
The Company will hold a conference call on Monday, November 25th, 2019 to discuss the financial results for the three and nine-months ended September 30th, 2019, at 1:00 PM Eastern Standard Time hosted by Dan Poirier, Chief Executive Officer, Kevin Mills, Chief Financial Officer, Tom McCole, Chairman of the Board, and Akash Sahai, Executive Vice President of Business Development. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Monday, November 25th, 2019
Time: 1:00 PM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free - North America (+1) 888-231-8191
Conference ID: 8799123
Please connect at least 10 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
About Posera
Posera has been a leading provider of hospitality technology for more than 20 years. It manages merchant transactions with consumers and facilitates all aspects of the payment transaction.
Posera's full service solutions include: Maitre'D®, a point-of-sale system which offers a robust and comprehensive solution including hardware integration services, merchant staff training, system installation services, post-sale software and hardware customer support; KDS, a Kitchen Display System that is now available as a standalone product; and SecureTablePay®, an EMV compliant pay-at-the-table solution. Posera's solutions are deployed globally across the full spectrum of restaurants, from large chains and independent table service restaurants to international quick service chains, and its products have been translated into eight languages.
Posera Ltd.'s shares are traded on the Toronto Stock Exchange under the symbol "PAY".
More information about Posera can be found on the Company's website at www.posera.com or under the Company's profile on SEDAR at www.sedar.com.
Forward-Looking Statements
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Posera's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on April 1st, 2019 with the regulatory authorities. Posera assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless required by law.
SOURCE Posera Ltd.
Kevin Mills, Chief Financial Officer, 1.519.750.2325, [email protected], www.posera.com
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