TORONTO, Nov. 15, 2016 /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 nine-months ended September 30, 2016.
During the three-months ended September 30, 2016, Posera recognized $4,168,526 in total revenues(A), an increase of $142,643 or 3.5% when compared to the three-months ended September 30, 2015 of $4,025,883 and a decrease of $169,389 (3.9%) from $4,337,915 for the three-months ended June 30, 2016.
During the three-months ended September 30, 2016 Posera incurred restructuring expenditures of $293,458, compared to $nil and $184,443, for the three-months ended September 30, 2015 and June 30, 2016 respectively. The restructuring costs are investments being made by Posera which are expected to reduce expenditures, increase overall efficiency, operational discipline and financial performance of the Company in the long-term. Restructuring expenditures year-to-date, relate to severance costs and consultants.
Recurring revenues for the three-months ended September 30, 2016 were $1,683,774, a decrease of $25,842 (1.5%) from recurring revenues of $1,709,616 for the three-months ended September 30, 2015 and a decrease of $60,376 (3.5%) from recurring revenues of $1,744,150 for the three-months ended June 30, 2016.
Posera experienced a normalized EBITDA loss(A) for the three-months ended September 30, 2016 of $416,134, an increase in the loss of $141,602 (51.6%) from a loss of $274,532 for the three-months ended September 30, 2015, and an increase in the loss of $378,533 (1,007%) from a loss of $37,601 for the three-months ended June 30, 2016. The change in the normalized EBITDA loss was primarily due to the build-out of the management team during the three-months ended September 30, 2016.
In addition to reporting its third quarter 2016 financial results, the Company announced that it has secured additional access to capital in order to fund its growth initiatives through two separate transactions.
- On November 11, 2016, the Company entered into an agreement with the Unsecured Convertible Subordinated Debenture holders in order to extend the payment terms of the principal amount, totalling $1,500,000, from January 15, 2017 to January 15, 2019 with the nominal interest rate remaining at 10.25%.
- On November 11, 2016, the Company negotiated a $1,500,000 stand-by operating facility, which may be drawn upon by the Company at any time with 5 business days' notice to the accredited lender. The interest rate on any funds drawn is 10% per annum and the stand-by charge is 2.5%. The stand-by operating facility expires December 31, 2018 and can be cancelled by the Company at anytime with 30-days notice to the lender at no additional cost.
Loudon Owen, Posera's Chairman and CEO reports, "The Company continues to move forward steadily and while the financial results are still unsatisfactory, they represent a significant investment in the renewal of the business, the results of which we believe will become apparent in the relatively near future."
Disposition of Zomaron and Discontinued Operations: On April 29, 2016 the Company completed the sale of all of the issued and outstanding shares in the capital of its wholly owned subsidiary Zomaron Inc. ("Zomaron"). To understand the current and comparative financial results included in this press release, please refer to the Company's Financial Statement's and Management Discussion and Analysis for the three and nine-months ended September 30, 2016, where a detailed explanation regarding the presentation and disclosure impact for the Zomaron discontinued operation and ultimate disposal to the Company's consolidated results.
The Company will hold a conference call on Thursday, November 17th, 2016 to discuss the financial results for the three and nine-months ended September 30, 2016, at 12:00 PM Eastern Standard Time hosted by Loudon Owen, Chief Executive Officer and Kevin Mills, Chief Financial Officer. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Thursday, November 17th, 2016
Time: 12:00 PM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free - North America (+1) 888-231-8191
Conference ID: 17994322
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 mission critical 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".
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 30th 2016 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.
Image with caption: "Posera Ltd. (CNW Group/Posera Ltd.)". Image available at: http://photos.newswire.ca/images/download/20161115_C6008_PHOTO_EN_818806.jpg
For further information: Kevin Mills, Chief Financial Officer, 1.416.703.6462 ext. 2203, [email protected], www.posera.com; Investor Relations Contact: Caleb Jeffries, 1.604.684.6730