OTTAWA, April 4, 2013 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) announces that revenues increased 20% to $10,719,792 in FY 2012 compared to $8,930,735 in FY 2011. Net earnings for 2012 decreased 7% to $1,032,218 compared to $1,114,904 in 2011, and net earnings per share for 2012 were $0.07 compared to $0.08 for 2011. Earnings from operating activities were $761,362 in 2012 compared to $1,059,741 in 2011. The Company-defined adjusted EBITDA, as described in the Company's Management Discussion and Analysis was $1,204,000 in FY 2012, compared to $1,387,000 in FY 2011.
"The Company had a successful year in terms of sales growth and new product development. Net income and EBITDA were down because of increased investment in product development and marketing and the loss of two large customers in Q4 due to cost cutting measures in these firms. One or two acquisitions were a key part of the 2012 growth strategy and while no deals were completed to impact 2012 we have just announced on April 2, 2013 the acquisition of a division of Navex Global ", said Michael Gaffney, Chief Executive Officer.
Gross margins decreased to 49% in 2012 compared to 51% in 2011 due to the assumed overheads associated with the Service Intelligence business combination, as the final integration of SI took longer than expected. The company expects gross margins to increase and return to historical levels in 2013 as Service Intelligence customers have been fully transferred onto In-Touch systems.
At the Event Technology Summit in New York in November 2012 we launched EventMatrix (eventmatrix.com) - an enterprise platform as a service targeted at Chief Marketing Officers, Chief Information Officers and Agencies of Record to manage large complex mobile deployments for marketing and operations departments. The Company has made two major sales of EventMatrix and estimates total annual combined revenues from these sales may exceed a million dollars.
|Consolidated Statements of Comprehensive Earnings||2012||2011|
|Revenue $ 10,719,792 $ 8,930,735||$ 10,719,792||$ 8,930,735|
|Cost of services 5,510,707 4,366,655||5,510,707||4,366,655|
|Gross profit 5,209,085 4,564,080||4,366,655||4,366,655|
|Total operating expenses 4,447,723 3,504,339||4,366,655||4,366,655|
|Earnings from operating activities 761,362 1,059,741||4,366,655||4,366,655|
|Finance costs (112,835) (68,555)||4,366,655||4,366,655|
|Loss on extinguishment of long-term debt||-||(147,748)|
|Change in fair value of derivative||-||(104,128)|
|Change in fair value of contingent payment||(16,179)||(29,610)|
|Deferred tax recovery||407,950||419,104|
|Current income tax||(8,080)||(13,900)|
|Net earnings and other comprehensive earnings||$ 1,032,218||$ 1,114,904|
|Weighted average number of common shares - basic||14,226,312||14,028,257|
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.
SOURCE: In-Touch Survey Systems Ltd.
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