INXSF.. 0.041
PRESS RELEASE: In-Touch Survey Systems Ltd. announces Q1 2010 financial results with 194% growth in net income and 602% increase in EBITDA ..............
Dow Jones & Company, Inc. - May 20 at 16:01
Company Symbols: TorontoVE:INX, OtherOTC:INXSF
OTTAWA, May 20 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX- Venture: INX) announces revenue of $1,321,745 in Q1 2010 compared to $1,358,291 in Q1 2009. Net Income for Q1 2010 increased 194% to $151,969 compared to a net loss of $160,228 in Q1 2009. The Company-defined adjusted EBITDA increased 602% to $246,000 in Q1 2010, compared to an EBITDA of $(49,000) in Q1 2009.
"With Q1 2010 revenues comparable to Q1 2009 the Company achieved significant positive results in both Net Income and Cash Flow (EBITDA). Just maintaining revenues in 2010 was a major accomplishment given the state of the economy," said Michael Gaffney, Chief Executive Officer.
"The significant improvement in financial performance was due to a number of reasons. We achieved a Gross Margin of 67% in Q1 2010; much higher than a Gross Margin of 59% in Q1 2009. Corporate overheads decreased significantly in 2010 as the Company has fully integrated its 2008 acquisitions. Also, the 2009 audited consolidated financial statements provide details about the write off of poorly performing assets (see the MarketLine division write-down) and related costs which no longer appear in 2010," said Gaffney.
"Our current sales backlog is ahead of last year but it is still difficult to predict future revenues. There are good indications that the Company will remain profitable for the entire year - with breakeven occurring at much lower revenue levels compared to 2009. The Company was very successful in the last year replacing cancelled auto industry orders with major new customers in the insurance, grocery and telecommunications industries. Fundamental to all our operational improvements are the improvements to our platform software technology which becomes more important and strategic as each day passes and we continue to be very positive about the future," said Gaffney.
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Consolidated Statements of Operations Q1 2010 Q1 2009
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Revenue $ 1,321,745 $ 1,358,291
Cost of services and goods sold 439,940 558,190
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Gross profit 881,805 800,101
Total operating expenses 699,889 936,001
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Earnings (loss) before undernoted items 181,916 (135,900)
Interest expense (20,255) (34,195)
Amortization of financing costs - (4,217)
Amortization of discount on promissory note - -
Amortization of intangible asset - (2,777)
Change in fair value of derivative - -
Gain (loss) on foreign exchange (9,692) 2,774
Gain on disposal of property and equipment - 14,087
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Net income (loss) $ 151,969 $ (160,228)
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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.
%SEDAR: 00007687E
/CONTACT: mgaffney@intouchsurvey.com, Chief Executive Officer, (613) 270- 7911 Copyright CNW Group 2010
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AI
