TORONTO, Nov. 15, 2017 /CNW/ - Posera Ltd. (TSX: PAY) a leading provider of software solutions for the hospitality industry, today announced its financial results for the three and nine-months ended September 30th, 2017.
During the third quarter of 2017 Posera achieved noteworthy milestones including: the divestment of its FingerPrints business, the launch of its KDS solution as a separate business, the growth of Maitre'D sales in the hotel industry, and the completion of certification with several major processors of its SecureTablePay product.
In September, Posera completed an asset sale of its FingerPrints point-of-sale (POS) business, to SICOM Systems, Inc., for $12.2M in cash consideration, subject to post-closing adjustments. This divestment improves Posera's balance sheet, is a catalyst on the road to profitability, and allows Posera to strategically focus on its three core products: Maitre'D (POS software), KDS (kitchen display system), and SecureTablePay (pay-at-the-table solution).
During the third quarter Posera also announced the launch of its KDS solution as a standalone offering from the Maitre'D POS platform for integration with third-party point-of-sale and restaurant management solutions. Posera is pleased to report it is achieving strong traction with this strategy and has received a significant order from a US-based quick-service chain, with installations scheduled to be completed in the fourth quarter of 2017 and the first quarter of 2018. KDS sales are trending towards an approximate 400% revenue increase on a year-over-year basis (YOY).
"Integrating KDS to a proprietary POS system of this magnitude was an exciting project for Posera, and our dedicated team worked very hard over the past year to make this a reality," said Dan Poirier, Chief Executive Officer. "We are proud of the many enhancements we made to the KDS software to win this large customer; these enhancements will now be available in all future versions and to all future customers," added Poirier.
The Maitre'D POS solution continues to excel in non-traditional-restaurant hospitality sectors such as hotels, casinos, and assisted care living. Specifically, Maitre'D sales in the European hotel market have grown approximately 40% YOY through the first nine months of 2017. To fuel this growth, Posera completed certifications with three leading property management systems that are deployed by major hotel brands globally, and combined with the recent Shift4 certification, Posera is confident that it can replicate the European success in North America as well.
Posera completed certification of SecureTablePay with Heartland and First Data, adding to its existing certification with Vantiv, and continues to work towards certification with several other leading processors. SecureTablePay is currently in pilot with all three of the above leading processors at several locations across the country and will be fully launched in the US market in the fourth quarter.
During the three-months ended September 30, 2017, the Company recorded a $11,237,620 gain on the divestment of FingerPrints and other minor assets, and a loss on discontinued operations of $855,349. As a result, net income for the three-months ended September 30, 2017 was $9,857,645, an improvement of $10,857,604 from a loss of $989,959 for the three-months ended September 30, 2016, and an improvement of $10,782,354 from a loss of $924,709 for the three-months ended June 30, 2017.
Normalizing for the gain on the divestment and excluding the FingerPrints discontinued operations during the three-months ended September 30, 2017, Posera recognized $2,258,166 in total revenues, a decrease of $696,737 (23.6%) from $2,954,903 for the three-months ended June 30, 2017, and a decrease of $192,972 (7.9%) from $2,451,138 when compared to the three-months ended September 30th, 2016. Recurring revenues for the three-months ended September 30, 2017 were $699,120, an increase of $18,268 (2.7%) from recurring revenues of $680,852 for the three-months ended June 30, 2017, and a decrease of $12,517 (1.8%) from recurring revenues of $711,637 for the three-months ended September 30, 2016.
Posera experienced a normalized EBITDA(1,2) loss adjusted for discontinued operations for the three-months ended September 30, 2017 of $356,839, representing a $20,152 (5.3%) decrease in loss from a loss of $376,991 for the three-months ended September 30, 2016. On a normalized basis, during the three-months ended September 30, 2017, the Company experienced a net loss from continuing operations of $524,626, compared to a net loss of $950,816 for the three-months ended September 30, 2016, and a net loss of $375,708 for the three-months ended June 30, 2017.
EBITDA adjusted for discontinued operations: 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, gains or losses from discontinued operations and other gains or losses on disposition of assets or extinguishment of liabilities.
Normalized EBITDA adjusted for discontinued operations: Posera's management defines Normalized EBITDA adjusted for discontinued operations as EBITDA adjusted for discontinued operations above less certain one-time non-recurring expenditures, and non-cash stock-based compensation expense.
The Company will hold a conference call at 11:00 AM Eastern Standard Time on Thursday, November 16th, 2017, to discuss the financial results for the three and nine-months ended September 30th, 2017. The call will be 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: Thursday, November 16th, 2017
Time: 11:00 AM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free - North America (+1) 888-231-8191
Conference ID: 3487119
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®, an EMV compliant pay-at-the-table application; Maitre'D®, a point of sale system which offers a robust and comprehensive solution including hardware integration services, merchant staff training, system installation services, post-sale software and hardware customer support; and KDS, a Kitchen Display System that is now available as a standalone product. Posera's solutions are deployed globally 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.
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@example.com, www.posera.com