Posera-HDX Announces its 6th Consecutive Quarterly Normalized EBITDA Profit and its 4th Consecutive Quarterly EBITDA Profit

TORONTO, Nov. 14, 2011 /CNW/ - Posera-HDX Ltd., the successor to Posera-HDX Inc. (TSX:HDX), (the "Company") announced today its financial results for the three and nine-months ending September  30th, 2011. HDX is listed on the TSX under the symbol "HDX".

Paul Howell, Chief Executive Officer, reports:

The Company has performed well in spite of the difficult economic conditions world-wide, achieving an EBITDA profit of $145,517 for the three-months ended September 30, 2011, and sales and service revenues of $4,541,336, representing an increase of 7.7% from $4,215,178 from the three-months ended September 30, 2010.  Sales and service revenues for the nine-months ended September 30, 2011 have increased to $12,887,662 or 31.0% when compared to sales and service revenues from the nine-months ended September 30, 2010 of $9,838,910.

Excluding one-time expenditures related to legal, accounting and other administrative costs incurred to complete the reorganization of Posera-HDX Inc. to Posera-HDX Ltd., a tax judgement in the State of California and minor moving expenses, the Company achieved normalized EBITDA profit for the three-months ended September 30, 2011 of $384,414, compared to a normalized EBITDA profit of $103,724 for the three-months ended September 30, 2010 representing an increase of 270.6%.

The Company's' performance for the three-months ended September 30, 2011 has resulted in the Company achieving its fourth consecutive quarter of EBITDA profit, sixth consecutive quarter of Normalized EBITDA profit.

The company continues to pursue acquisitions within the point of sale and payments industries although none are specifically named at this time.

Quarterly Highlights and Summary

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  • EBITDA profit for the three-months ended September 30, 2011, was a profit of $145,517, an increase of $168,471 from a loss of $22,954 for the three-months ended September 30, 2010, and an increase of $126,245 from a profit of $19,272 for the three-months ended June 30, 2011;
  • Included in the operating expenses for the three-months ended September 30, 2011, September 30, 2010 and June 30, 2011 were certain one-time non-recurring expenditures of $125,784, $156,307 and $77,937 and non-cash stock-based compensation expense  of $147,513, $209 and $14,500 respectively;
  • Normalized EBITDA for the three-months ended September 30, 2011 was a profit of $384,414, an increase of $280,690 from a profit of $103,724 for the three-months ended September 30, 2010, and an increase of $150,901 from a profit of $233,513 for the three-months ended June 30, 2011;
  • Total revenue was $4,541,336 for the three-months ending September 30, 2011, up $253,020 (5.9%) from $4,288,316 for the three-months ending September 30, 2010 and up $326,158 (7.7%) from $4,215,178 for the three-months ending June 30, 2011;
  • Gross profit was $3,287,382 for the three-months ended September 30, 2011, up $185,994 (6.0%) from $3,101,388 for the three-months ended September 30, 2010, and up $25,036 (0.8%) from $3,262,346 for the three-months ended June 30, 2011;
  • Operating expenses were $3,459,729 for the three-months ended September 30, 2011, up $52,087 (1.5%) from $3,407,642 for the three-months ended September 30, 2010, and decrease $116,479 (3.3%) from $3,576,208 for the three-months ended June 30, 2011;
  • Included in the operating expenses for the three-months ended September 30, 2011, September 30, 2010 and June 30, 2011 were certain one-time non-recurring expenditures of $125,784, $156,307 and $77,937 and non-cash stock-based compensation expense  of $147,513, $209 and $14,500 respectively;
  • Posera-HDX's working capital totaled $1,204,021 as at September 30, 2011, an increase of $206,035 (20.6%) from $997,986 as at September 30, 2010, and a decrease of $20,942 (1.7%) from $1,224,963 as at June 30, 2011; and
  • Net loss attributable to owners of the parent (under IFRS net income or loss is required to be allocated to the parent and minority shareholders, if any). As the Company does not have any minority shareholders, 100% of the net loss has been attributed to the parent's shareholders for the three-months ended September 30, 2011, was a loss of $220,636, an increase of the loss by $165,214 from a loss of $55,422 for the three-months ended September 30, 2010, and an increase of $125,242 from a loss of $95,394 for the three-months ended June 30, 2011.

Subsequent event after the balance sheet date

  • On October 7, 2011, the company completed its reorganization, by way of a plan of arrangement, which resulted in all of the assets and liabilities of Posera - HDX Inc., except for the Dexit radio frequency identification device ("RFID") Business assets and liabilities, and certain other assets, being transferred into a new company named Posera - HDX Ltd.  The security holders of Posera - HDX Ltd. are the former security holders of Posera - HDX Inc.  The reorganization allows Posera - HDX Ltd. to divest of Posera - HDX Inc. (renamed 'Dexit Inc.') which owns the legacy Dexit RFID business.
  • On October 28, 2011, Posera - HDX Ltd., the successor organization to Posera - HDX Inc., as disclosed above, completed the sale of Dexit Inc. (formerly Posera - HDX Inc.) for proceeds of approximately $2,000,000, subject to certain post-closing adjustments. This transaction will result in Posera - HDX Ltd. recording an approximate $2,000,000 recovery of future income taxes for the year-ended December 31, 2011. No amount has been recorded in the financial statements as at September 30, 2011, as the recovery was not probable as at the date of these financial statements.

Non-GAAP Reporting Measures:  Management reports on certain Non-IFRS ("International Financial Reporting Standards") measures to evaluate performance of the Company. Non-IFRS measures are also used to determine compliance with debt covenants and manage the capital structure. Because non-IFRS measures do not generally have a standardized meaning, securities regulations require that non-IFRS measures be clearly defined and qualified, and reconciled with their nearest IFRS measure. The Canadian Institute of Chartered Accountants (CICA) Canadian Performance Reporting Board has issued guidelines that define standardized earnings before interest, taxes, depreciation and amortization (EBITDA).  For definitions of Non-GAAP measures, refer to the Company's quarterly management discussion and analysis for the three-months ended September 30, 2011.

Additional information on Posera-HDX's third quarter and year-to-date 2011 financial results will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.dexit.com.

About the Company

Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Posera-HDX Ltd. develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages.  The Company sells and services its clients directly, as well as through a network of approximately 114 value added reseller partners in 25 countries with approximately 1,100 representatives selling, supporting & installing its software.  Posera-HDX employs approximately 130 people in offices in Toronto, London, Brantford, Mississauga, Ottawa, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.

Forward-Looking Statements 

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 HDX'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 24th, 2011 with the regulatory authorities.  HDX 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. 

SOURCE Posera-HDX

For further information:

Paul Howell
Chief Executive Officer
Posera-HDX Ltd. (HDX)
350 Bay Street, Suite 700
Toronto, Ontario M5H 2S6
(416) 703-6462 ext. 2263

Organization Profile

Posera-HDX

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