TORONTO, Aug. 14, 2017 /CNW/ - Posera Ltd. (TSX : PAY) ("Posera" or the "Company"), a leading provider of software solutions for the hospitality industry, today announced its financial results for the three and six-months ended June 30th, 2017.
During the three-months ended June 30, 2017, Posera recognized $4,392,224 in total revenues, an increase of $444,417 (11.3%) from $3,947,807 for the three-months ended March 31, 2017 and an increase of $54,309 or 1.3% when compared to the three-months ended June 30th, 2016 of $4,337,915.
The increase in revenues is primarily attributed to the successful launch of the Company's integrated POS solution for the international hotel industry. Posera's fully integrated POS solution for the hotel industry was launched in the last 270 days has resulted in more than 50 installations in prestigious hotel properties in Paris, Strasburg, Barcelona and more throughout Europe. Posera is expanding its hotel initiative to be a global solution, as sales to date have been European centric.
Posera experienced a normalized EBITDA loss(1,2) for the three-months ended June 30th, 2017 of $439,105, representing a decrease in the loss of $727,277 (62.4%), from a loss of $1,166,382 for the three-months ended March 31, 2017. The second quarter represented the second consecutive quarter where the Company reduced its normalized EBITDA loss. The improvement in the normalized EBITDA loss resulted from an increase in revenue in conjunction with ongoing operating expense reductions which is consistent with the Company's expense reduction plan that has taken place throughout the first and second quarters of fiscal 2017.
Net loss for the three-months ended June 30, 2017 was a loss of $924,709, a decrease in the loss of $872,524 (48.5%) from a loss of $1,797,233 for the three-months ended March 31, 2017 and represents an increase in the loss of $106,874 (13.1%) from the normalized loss of $817,835(3) for the three-months ended June 30, 2016.
Recurring revenues for the three-months ended June 30th, 2017 were $1,681,142, an increase of $20,032 (1.2%) from recurring revenues of $1,661,110 for the three-months ended March 31, 2017 and a decrease of $63,008 (3.6%) from recurring revenues of $1,744,150 for the three-months ended June 30th, 2016 and. Recurring revenue has consistently remained at +/- 40% of total revenues between the comparative reporting periods.
The Company's SecureTablePay (STP) product has been certified, or in final stages of certification with 4 major US based payment processors. Final pilot testing is progressing and commercialization, of this application is expected to commence in the third quarter of 2017. The US STP platform will be commercialized primarily on a recurring revenue model.
During the second quarter of 2017, Posera crossed a major milestone with the first installation outside of Canada of its Quick Service Restaurant (QSR) Point-of-Sale (POS) technology. Posera successfully deployed its QSR POS solution in the Philippines, leveraging the International expansion of a major customer. Posera has thousands of QSR locations deployed worldwide, with concentrations in Europe and North America. This demonstrates that our POS products are well suited to International growth in the economies of Asia, Africa, Central and South America, as our products have been built from inception with a multi-lingual approach.
EBITDA: Posera's management defines EBITDA as Net Income before interest expense, interest income, income taxes (excluding certain investment tax credits and other government assistance), amortization of capital and intangible assets, realized and unrealized exchange gain or loss, impairments and gains or losses on held for trading financial instruments, and other gains or losses on disposition of assets or extinguishment of liabilities.
Normalized EBITDA: Posera's management defines Normalized EBITDA as EBITDA as discussed above less certain one-time non-recurring expenditures, and non-cash stock-based compensation expense.
During the three-months ended June 30, 2016 the Company recorded a $1,959,794 gain on the disposition of Zomaron. The net loss for the three-months ended June 30, 2016 has been normalized for the gain on the disposal of Zomaron.
The Company will hold a conference call on Friday, August 18th, 2017 to discuss the financial results for the three and six-months ended June 30th, 2017, at 1:00 PM Eastern Standard Time hosted by Loudon Owen, Chairman, Dan Poirier, Chief Executive Officer and Kevin Mills, Chief Financial Officer. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Friday, August 18th, 2017
Time: 1:00 PM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free - North America (+1) 888-231-8191
Conference ID: 70074668
An archive of the conference call will be available by visiting the Company's website at www.posera.com/investor-relations. Please connect at least 10 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
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 application. Posera's Maitre'D® 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".
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business and the environment in which the business operates. These statements include, but are not limited to, the expected size and completion date of the Offering, participation in the Offering by certain insiders, and the use of proceeds from the Offering. 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 general market conditions as they relate to the Company's Shares, and the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 31st, 2017 with the securities regulatory authorities and available on SEDAR. 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 protected], www.posera.com