In-Touch Survey Systems Ltd. announces FY 2011 results: a 52% increase in revenues and a 47% increase in net earnings
OTTAWA , April 30, 2012 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces that revenues increased 52% to $8,930,735 in FY 2011 compared to $5,893,125 in FY 2010. Net earnings for 2011 increased 47% to $1,114,904 compared to $758,101 in 2010, and net earnings per share for 2011 was $0.08 compared to $0.06 for 2010. Earnings from operating activities were $1,068,000 in 2011 compared to $995,412 in 2010. The Company-defined adjusted EBITDA, as described in the Company's Management Discussion and Analysis was $1,387,000 in FY 2011, compared to $1,221,000 in FY 2010.
"The Company had a very successful year and is poised for significant compounded growth in future years. 2012 sales bookings have already reached $10,000,000 . The addition of Service Intelligence in August 2011 gave us a complete working entity in the USA for Audit, Mystery Shopping and Customer Insight services. Overall, the company is striving for 50% growth in 2012 with 25% growth from organic sales and 25% growth from acquisitions", said Michael Gaffney , Chief Executive Officer.
Gross margins decreased to 51% in 2011 compared to 60% in 2010 due to the assumed overheads associated with the Service Intelligence business combination. The company expects gross margins to increase and return to historical levels in Q3 2012 as Service Intelligence customers switch onto In-Touch systems.
"The IMS division, which completed its first full year of operations, exceeded its targets with sales of $1.3M . We expect this division, which is focused on enterprise edge applications for governments, to grow by 150% in 2012 and reach $3M in revenues. Our mobile technology and capabilities from the Electronic Data Capture division are providing an invaluable aid in winning this government business", said Gaffney.
Over the past several years the company's managed mobile software technology for marketing and operations has evolved into an enterprise edge solution. The edge of the enterprise, whether the enterprise is a government department, an automobile company or a retail chain, is where that enterprise engages its customers and suppliers via websites and mobile devices. In-Touch provides service, software tools, logistics and SaaS applications that enable its customers to manage complex, multiplatform, mobile, web and social media applications and networks that are at the 'edge' of their enterprise - in both online and offline modes. Moreover, In-Touch also provides a data integration layer and services to link the information from edge transactions to corporate information systems. In-Touch is ideally positioned to take advantage of the mobile-web service transformations that are occurring in large enterprises because of global mobile driving forces.
Consolidated Statements of Comprehensive Earnings 2011 2010
Revenue $ 8,930,735 $ 5,893,125
Cost of services and goods sold 4,366,655 2,355,983
Gross profit 4,564,080 3,537,142
Total operating expenses 3,496,080 2,541,730
Earnings before undernoted items 1,068,000 995,412
Interest expense on short term debt (68,555) (94,967)
Loss on extinguishment of long-term debt (147,748)
Change in fair value of derivative (104,128) (97,109)
Change in fair value of contingent payment (29,610) -
Loss on foreign exchange (8,259) (45,235)
Deferred tax recovery 419,104 -
Current income tax (13,900) -
Net earnings and other comprehensive earnings $ 1,114,904 $ 758,101
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.
