TORONTO, April 4, 2017 /CNW/ - Posera Ltd. (TSX : PAY) ("POSERA" or the "Company"), a leading provider of software and payment solutions for the hospitality industry, today announced its financial results for the three and twelve-months ended December 31st, 2016.
For the year-ended December 31, 2016, Posera recognized $16,804,714 in revenues, an increase of $117,803 or 0.7% when compared to $16,691,172 for the year-ended December 31, 2015.
On April 29, 2016, the Company completed the divestiture of Zomaron Inc., to a company established by Zomaron's current operating management team, for an amount totalling $4.5 million. Consideration for the sale of Zomaron's shares comprised of a cash payment of $2.0 million on closing. Additionally, on closing Posera received a repayment of an existing intercompany debt in the amount of $1.3 million. Further, on closing the buyers have assumed a secured note payable with an estimated value on the date of disposition of $1.2 million, $0.4 million of which is unconditionally due on or before December 31, 2016, and $0.8 million of which is repayable at an amount that is dependent on certain variables, including Posera's share price.
Posera experienced a normalized EBITDA loss after adjusting for restructuring and the goodwill impairment, for the year-ended December 31, 2016 of $2,407,509, an increase in the loss of $1,232,463 (104.9%), from a loss of $1,175,046 for the year-ended December 31, 2015. In an effort to improve and protect the Company's long-term service revenues and margins, the Company elected to incent customers with discounts and trade-in program to replace their aging hardware, which was under contract and being supported by Posera. This contributed to lower point-of-sale ("POS") gross margins and normalized EBITDA losses.
During the year-ended 2016 Posera incurred restructuring expenditures of $1,178,593 (2015 - $662,512) and incurred an impairment of $nil (2015 - $1,562,675) to the goodwill allocated to the point-of-sale ("POS") segment. The restructuring expenses have been an expense to the Company in the short-term, but are expected to reduce overall expenditures, increase overall efficiency and financial performance of the Company in the long-term. Restructuring expenses are related primarily to operational consultants and reducing overall employee headcount through terminations. During the fourth quarter of 2016 the Company had completed a year of restructuring efforts and at that time assessed that the balance of the restructuring had been completed and any costs associated with consultants were reflective of operating the business day-to-day rather than purely restructuring in nature.
- Recurring revenues(1) for the three-months ended December 31, 2016 were $1,612,795, a decrease of $58,868 (3.5%) from recurring revenues of $1,671,663 for the three-months ended December 31, 2015, and a decrease of $70,979 (4.2%) from recurring revenues of $1,683,774 for the three-months ended September 30, 2016;
- Total revenue(1) was $3,879,139 for the three-months ended December 31, 2016, a decrease of $643,949 (14.2%) from $4,526,389 for the three-months ended December 31, 2015 and a decrease of $298,387 (7.1%) from $4,168,526 for the three-months ended September 30, 2016; and
- Normalized EBITDA(2) profit(loss) for the three-months ended December 31, 2016 was a loss of $1,407,577, an increase in the loss of $1,195,327 (563.2%), from a loss of $212,250 for the three-months ended December 31, 2015, and an increase in the loss of $991,443 (238.3%) from a loss of $416,134 for the three-months ended September 30, 2016.
- Recurring revenues(1) for the year-ended December 31, 2016 was $6,787,328, an increase of $360,909 (5.6%) from recurring revenues of $6,426,419 for the year-ended December 31, 2015;
- Total revenue(1) was $16,804,714 for the year-ended December 31, 2016, an increase of $113,542 (0.7%) from $16,691,172 for the year-ended December 31, 2015; and
- Normalized EBITDA(2) loss for the year-ended December 31, 2016 was a loss of $2,407,509, an increase in the loss of $1,232,463 (104.9%) from a loss of $1,175,046 for the year- ended December 31, 2015.
Amount presented applies the retrospective presentation for discontinued operations for the Zomaron transaction as discussed in this MD&A on Page #3-4 of the Company's Management Discussion and Analysis for the year and three-months ended December 31, 2016.
Presentation of these amounts include the results from discontinued operations as discussed on Page #3-4 of the Company's Management Discussion and Analysis for the year and three-months ended December 31, 2016.
Posera has been a leading provider of hospitality technology for more than 30 years. It manages merchant transactions with consumers and facilitates all aspects of the payment transaction.
Posera's full service solutions include SecureTablePay, which is an EMV compliant Pay-At-The-Table ("PATT") application. Posera's MaitreD'TM and FingerPrintsTM restaurant management systems offer a robust and comprehensive solution including hardware integration services, merchant staff training, system installation services, post-sale software and hardware customer support. Posera's solutions are deployed globally including across the full spectrum of restaurants, from large chains and independent table service restaurants to international quick service chains and its products have been translated into eight languages.
Posera Ltd.'s shares are traded on the Toronto Stock Exchange under the symbol "PAY".
More information about Posera can be found on the Company's website at www.posera.com or under the Company's profile on SEDAR at www.sedar.com.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Posera's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 31st 2017 with the regulatory authorities. Posera assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless required by law.
SOURCE Posera Ltd.
For further information: Kevin Mills, Chief Financial Officer, 1.519.434.8017, email@example.com, www.posera.com