RDM Corporation Reports Fiscal 2013 Fourth Quarter and Year-End Financial Results

Payment processing drives growth

WATERLOO, ON, Nov. 21, 2013 /CNW/ - RDM Corporation (TSX: RC), a leader in remote deposit capture (RDC) solutions, today reported its financial results for the year and three-month period ended September 30, 2013. All figures are reported in U.S. dollars unless otherwise stated.

Year ended September 30, 2013 Highlights

  • Revenue increased 7% to $21.9 million, compared to the prior year, driven by a 12% revenue increase from Payment Processing Services. Digital Imaging revenue remained consistent at $8.8 million.
  • Gross margin increased to 53.2% from 50.9% in fiscal 2012.
  • Operating income grew by 135% to $2.0 million, driven by solid growth of higher margin recurring revenue and relatively stable operating expenses.
  • A net loss of $519,000 was recorded, primarily attributable to $2.3 million in legal settlement expenses, as well as a $0.2 million foreign exchange loss. Prior year's $1.8 million net profit included a $0.5 million foreign exchange gain and $0.5 million in other income.
  • Adjusted EBITDA was up 53% to $3.6 million, as compared to $2.3 million in 2012.

Q4 2013 Highlights

  • Total revenue was $5.6 million compared to $5.7 million in Q4 of 2012.
  • Payment Processing Services revenue increased by 7% to $3.3 million compared to last year, driven primarily by an increase in ITMS end-user seats. The Company added 1,071 new seats during the quarter to bring its ITMS network to 32,021 seats, up 12% from one year earlier and up 3.5% compared to Q3 2013.
  • Digital Imaging revenue was $2.3 million, as compared to $2.6 million last year.
  • Adjusted EBITDA increased by 33% to $1.1 million and operating income was up 32% to $0.6 million.
  • The Company generated $0.9 million in cash during the quarter and ended the period with a cash balance of $20.1 million.

"Overall, I am pleased with our results this year with both revenue and profitability increasing over the prior year," stated Randy Fowlie, President and CEO of RDM. "RDM achieved solid organic growth of 12% in our recurring revenue business as we see continued acceptance of our products in the marketplace. We increased end-user seats by 3,500 to end the year with over 32,000. Fiscal 2013 results also demonstrated that our operations are continuing to improve with income from operations increasing 135% to $2 million. In addition, we strengthened our balance sheet by increasing our cash position to $20 million. This provides us the opportunity to make investments where necessary to continue to grow the business."

Conference Call
RDM will be hosting a conference call to discuss the Company's fourth quarter results on November 21, 2013 at 9:00 a.m. EDT. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived at www.rdmcorp.com. Detailed financial results and Management's Discussion and Analysis ("MD&A") will be filed on www.sedar.com.

Non-IFRS Measures
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for foreign exchange gains and losses, stock-based compensation and one time charges) is provided to assist management and investors in determining the Company's approximate operating cash flows before interest, income taxes, and depreciation and amortization. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management believes that RDM shareholders and potential investors in RDM use non-IFRS financial measures such as Adjusted EBITDA in making investment decisions about the Company and measuring the operational results. A reconciliation of Adjusted EBITDA to net income determined in accordance with IFRS is provided in the Company's MD&A and in the accompanying schedule.

About RDM Corporation

RDM Corporation (www.rdmcorp.com) is a leading provider of remote deposit capture (RDC) and complex desktop remittance processing solutions designed to help clients simplify the way they do business. Five of the top ten financial institutions in the United States use RDM's payment processing solutions. RDM processes over $600 billion in payments annually and helps corporations and financial institutions increase revenue, expand market share and improve customer service for over 30,000 end-users. RDM serves 32 percent of the top 100 Fortune 500 companies including brokerage firms, big box retailers, healthcare and insurance providers, and government entities.

For over 25 years, RDM has worked with clients to provide both software and hardware solutions including web-based and mobile RDC for large corporate clients and small businesses, transactional data management, and manufactures a wide range of digital imaging scanners. RDM was recently named to the Branham300 list, which highlights the top Canadian and multinational companies servicing the Information and Communication Technology (ICT) marketplace.

This news release contains forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RDM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RDM believes are appropriate in the circumstances. Many factors could cause RDM's actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. Risk factors relating to RDM are discussed in the Risks and Uncertainties section of RDM's Annual Information Form and year-end Management's Discussion and Analysis. These factors should be considered carefully, and readers should not place undue reliance on RDM's forward-looking statements. RDM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

RDM CORPORATION
Consolidated Balance Sheets
(Amounts in thousands of U.S. Dollars)
                       
                         
            September 30, 2013       September 30, 2012
Assets:                        
                         
Current assets:                        
  Cash and cash equivalents           $ 20,126       $ 18,897
  Accounts receivable             2,715         3,094
  Inventories             2,755         2,469
  Investment tax credit receivable             177         336
  Prepaid and other assets             760         569
  Derivative assets             29         63
Total current assets             26,562         25,428
                         
Investment tax credits             366         453
Property and equipment             1,986         1,951
Intangible assets             582         860
Total assets           $ 29,496       $ 28,692
                         
Liabilities and shareholders' equity:                        
                         
Current liabilities:                        
  Accounts payable and accrued liabilities           $ 3,663       $ 2,577
  Deferred revenue             337         275
Total current liabilities             4,000         2,852
                         
Shareholders' equity:                        
  Share capital             20,100         19,960
  Contributed surplus             2,445         2,323
  Accumulated other comprehensive income             29         116
  Retained earnings             2,922         3,441
Total shareholders' equity             25,496         25,840
Total liabilities and shareholders' equity           $ 29,496       $ 28,692
                   

RDM CORPORATION
Consolidated Statements of Income
(Amounts in thousands of U.S. Dollars, except per share data)
                                                           
                    Three months ended
September 30
          Years ended
September 30
                    2013             2012           2013           2012
                                                           
Revenue:                                                          
  Payment Processing Services           $       3,338     $       3,131     $     13,082     $     11,647
  Digital Imaging Products                   2,278             2,558           8,788           8,793
                    5,616             5,689           21,870           20,440
Cost of revenue                   2,751             2,763           10,238           10,040
Gross profit                   2,865             2,926           11,632           10,400
                                                           
Operating expenses:                                                          
  Sales and marketing                   788             854           3,253           3,413
  Research and development                   956             1,108           4,270           4,056
  General and administration                   509             502           2,097           2,075
                    2,253             2,464           9,620           9,544
                                                           
Results from operating activities                   612             462           2,012           856
                                                           
Other items:                                                          
  Foreign exchange gain (loss)                   (101)             134           (185)           501
  Interest                   9             13           38           90
  Other income (expense)                   91             65           (2,298)           528
                    (1)             212           (2,445)           1,119
                                                           
Income (loss) before income taxes                   611             674           (433)           1,975
Current income tax expense (recovery)                   (26)             -           86           184
Income (loss) for the period           $       637     $       674     $     (519)     $     1,791
                                                           
Income (loss) per share - basic and  diluted           $       0.03     $       0.03     $     (0.02)     $     0.08
                                                           

RDM CORPORATION
Consolidated Statements of Comprehensive Income
(Amounts in thousands of U.S. Dollars)
                                                           
                                                             
                    Three months ended
September 30
            Years ended
September 30
                    2013             2012             2013           2012
                                                             
Income (loss) for the period           $       637     $       674     $       (519)     $     1,791
                                                             
Other comprehensive income (loss):                                                            
  Effective portion of changes in fair value of cash flow hedges                   73             92             (87)           116
Comprehensive income (loss)           $       710     $       766     $       (606)     $     1,907
                                                             

RDM CORPORATION
Consolidated Statements of Changes in Shareholders' Equity
(Amounts in thousands of U.S. Dollars)
                                                     
            Share
capital
    Contributed
surplus
    Accumulated
other
comprehensive
income
    Retained
earnings
    Total
Balance as at October 1, 2011           $   19,960     $ 2,115     $ -     $   1,650     $   23,725
  Total comprehensive income for the period:                                                    
    Income for the period               -       -       -         1,791         1,791
    Effective portion of changes in fair value
of cash flow hedges
              -       -       116         -         116
                19,960       2,115       116         1,791         1,907
  Stock-based compensation               -       208       -         -         208
Balance as at September 30, 2012           $   19,960     $ 2,323     $ 116     $   3,441     $   25,840
  Total comprehensive income for the period:                                                    
    Loss for the period               -       -       -         (519)         (519)
    Issuance of share capital                 140       (20)       -         -         120
    Effective portion of changes in fair value
of cash flow hedges
              -       -       (87)         -         (87)
                140       (20)       (87)         (519)         (486)
  Stock-based compensation               -       142       -         -         142
Balance as at September 30, 2013           $   20,100     $ 2,445     $ 29     $   2,922     $   25,496
                                                     

RDM CORPORATION
Consolidated Statements of Cash Flows
(Amounts in thousands of U.S. Dollars)
                                                 
                                                   
              Three months ended
September 30
          Years ended
September 30
              2013           2012           2013           2012
                                                   
Cash provided by (used in):                                                  
                                                   
Operations:                                                  
Income (loss) for the period       $     637     $     674     $     (519)     $     1,791
  Items not involving cash:                                                  
    Current income tax expense (recovery)             (26)           -           86           184
    Depreciation of furniture and equipment             337           218           895           809
    Amortization of intangible assets             136           101           516           369
    Stock-based compensation
            27
          52
          142
          208
    Interest earned             (9)           (13)           (38)           (90)
    Exchange loss (gain) on cash held in foreign currency             116           246           (102)           (209)
Change in non-cash operating working capital             (226)           959           1,210           977
Cash provided by operations             992           2,237           2,190           4,039
Interest received             10           27           43           146
Net cash provided by operations             1,002           2,264           2,233           4,185
Financing:                                                  
  Issuance of share capital             34           -           120           -
Cash provided by financing activities             34           -           120           -
                                                   
Investing:                                                  
  Purchase of furniture and equipment             119           (60)           (930)           (305)
  Additions to intangible assets             (213)           (22)           (238)           (67)
Cash used in investing activities             (94)           (82)           (1,168)           (372)
                                                   
Exchange gain (loss) on cash held in foreign currency             (10)           (166)           44           269
Increase in cash and cash equivalents             932           2,016           1,229           4,082
Cash and cash equivalents, beginning of period             19,194           16,881           18,897           14,815
Cash and cash equivalents, end of period       $     20,126     $     18,897     $     20,126     $     18,897
                                                   

SCHEDULE
                                                         
RDM CORPORATION
Reconciliation of Adjusted EBITDA to Income (loss) for the period
(Amounts in thousands of U.S. Dollars)
                                                         
                  Three months ended
September 30
          Years ended
September 30
                  2013             2012           2013           2012
Net Income (loss) for the period           $     637     $       674     $     (519)     $     1,791
Income tax expense (recovery)                 (26)             -           86           184
Interest Income                 (9)             (13)           (38)           (90)
Depreciation and amortization                 473             319           1,411           1,178
Foreign exchange (gain) loss                 101             (134)           185           (501)
Stock-based compensation                 27             53           142           207
Other expense (income)                 (91)             (65)           2,298           (528)
Adjusted EBITDA for the period           $     1,112     $       834     $     3,565     $     2,241
                                                     

SOURCE: RDM Corporation

For further information:

Randy Fowlie
President & CEO
RDM Corporation
(519) 746-8483 x340
rfowlie@rdmcorp.com

Rui Malhinha
Chief Financial Officer
RDM Corporation
(519) 746-8483 x284
rmalhinha@rdmcorp.com

Profil de l'entreprise

RDM Corporation

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.