In-Touch Survey Systems Ltd. announces Q1 2012 financial results with 95% revenue increase
OTTAWA , May 30, 2012 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (INX.V) announces revenue of $2,790,339 in Q1 2012, which was 95% higher than revenue of $1,428,242 in Q1 2011. Net income before taxes for Q1 2012 was $129,584 , which was 351% higher than net income of $28,685 reported in Q1 2011. Gross profit was 43.7% in Q1 2012 compared to 62.2% in Q1 2011.The Company-defined adjusted EBITDA increased to $279,000 in Q1 2012, compared to an EBITDA of $161,000 in Q1 2011.
"We were very pleased with our achievements in the first quarter. First and foremost, revenues for Q1 2012 exceeded expectations. Our IMS group experienced significant growth in revenues in the quarter and we were very pleased with our success in retaining customers following the acquisition and integration of Service Intelligence ("SI") into the Company. Retaining the SI customers is a testament to the fine efforts of our Operations Team. Further, we are continuing our efforts to realize synergies, improve gross margins and achieve cost savings from the ongoing integration of our businesses and expect to realize the benefits of this plan this fiscal year", noted Michael Gaffney , Chief Executive Officer.
"We also increased our investment in product development and sales and marketing in Q1 2012 by $133,000 relative to Q1 2011 to support the development of new software features and functionalities in our EDC and MDC business segments, as well as to drive revenue growth in the next three quarters. We reiterate our previous forecast for higher revenues in 2012 compared to 2011," said Gaffney.
During the quarter, we also entered into an arrangement with a major trade magazine that will allow us to take a prominent role in the Gas & Convenience Industry. In May 2012 , we launched Industry Benchmark Mystery Shops, which will form the foundation of an article in the magazine; the results of which will be presented at an industry leadership summit in August. The presentation will involve representation from In-Touch/Service Intelligence and will take place on the main stage just prior to the keynote address by Bill Clinton & George W. Bush. In addition, we have been engaged by several major companies in the industry to generate their own Benchmark Shopping Study using the magazine study as the comparison. Other similar opportunities in other target industries are currently being pursued as well.
Consolidated Statements of Operations Q1 2012 Q1 2011
Revenue $ 2,790,339 $ 1,428,242
Cost of services 1,570,711 540,342
Gross profit 1,219,628 887,900
Total operating expenses 1,030,864 743,987
Earnings from operating activities 188,764 143,913
Finance costs (33,775) (15,943)
Loss on fair value of derivative - (45,369)
Loss in fair value of contingent consideration (349) -
Loss on foreign exchange (25,056) (55,920)
Gain on disposal of property and equipment - 2,004
Net earnings before income taxes $ 129,584 $ 28,685
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.
