TORONTO, May 15, 2013 /CNW/ - Posera-HDX Ltd. (TSX: HDX) (the "Company" or "Posera-HDX") announced today its financial results for the three-months ended March 31st, 2013. Posera-HDX is listed on the TSX under the symbol "HDX".
Paul Howell, Chief Executive Officer, reports:
Although the first quarter is traditionally a slow period for new system sales in the hospitality industry, Company revenue was strong at $4,093,586 for the three-months ended March 31, 2013, an increase of $463,542 (12.8%) from $3,630,044 for the three-months ended March 31, 2012.
The Company continues to pursue strategic acquisitions within the point-of-sale and payments industries and has recently announced a letter of intent to acquire Zomaron Inc., operating as Zomaron Merchant Services ("Zomaron").
Founded in 2008, Zomaron provides credit and debit card processing solutions to Canadian merchants nationwide. Based in London, Ontario, Zomaron has offices in Edmonton AB, Toronto ON, and Montreal QC. Through its nation-wide network of sales representatives and strategic partnerships, Zomaron has experienced rapid growth, doubling its sales annually. Zomaron's exponential growth led it to be ranked NO.15 on PROFIT magazine's 13th annual PROFIT HOT 50 ranking released in its October 2012 issue. Zomaron's solutions and services can also be marketed and deployed in the United States.
In keeping with the Company's long term business plan, Posera-HDX continues to make significant investments to enhance systems, facilities, and operating procedures in order to secure and maintain the necessary approvals to operate a payment processing switch and an ATM transaction processing switch. Team members and contractors with the appropriate industry expertise have been retained to allow the Company to develop the payment processing division with an eye toward monetizing the Company's investment in this division as quickly as possible.
The Company has experienced a Normalized EBITDA loss for the three-months ended March 31, 2013 of $276,402, a decrease of $45,711 from a Normalized EBITDA loss of $322,113 for the three-months ended March 31, 2012. The Company incurred amortization of acquired intangible assets of $326,065 (2012- $320,407) and amortization of property plant and equipment was $36,921 (2012 - $47,036) for the three-months ended March 31, 2013 and 2012 respectively. HDX Payment Processing Ltd. (formerly Cash N Go Ltd. a payments processing company) experienced an EBITDA loss for the three-months ended March 31, 2013 of $134,272, an increase of $13,529 from an EBITDA loss of $120,743 for the three-months ended March 31, 2012. Additionally, Posera-HDX Scheduler Inc. (the acquired assets of 2020 ITS Inc.) experienced EBITDA income for the three-months-ended March 31, 2013 of $6,521, an increase of $20,448 from an EBITDA loss of $13,927 for the three-months ended March 31, 2012. The Company expects to continue to make significant investments in these divisions into the foreseeable future and will strive to increase revenue for these divisions and products as quickly as possible.
Quarterly Highlights and Summary
- Total revenue was $4,093,586 for the three-months ended March 31, 2013, up $463,542 (12.8%) from $3,630,044 for the three-months ended March 31, 2012 and down $443,942 (9.8%) from $4,537,528 for the three-months ended December 31, 2012;
- Net loss for the three-months ended March 31, 2013 was a loss of $600,724, a decrease of $174,593 from a loss of $775,317 for the three-months ended March 31, 2012, and a decrease of $2,296,165 from a loss of $2,896,899 for the three-months ended December 31, 2012;
- EBITDA loss for the three-months ended March 31, 2013, was $296,920, a decrease of $29,695 from an EBITDA loss of $326,615 for the three-months ended March 31, 2012, and a decrease of $137,178 from an EBITDA loss of $434,098 for the three-months ended December 31, 2012;
- Normalized EBITDA loss for the three-months ended March 31, 2013 was $276,402, a decrease of $45,711 from a Normalized EBITDA loss of $322,113 for the three-months ended March 31, 2012, and an increase of $104,029 from a Normalized EBITDA loss of $172,373 for the three-months ended December 31, 2012;
- Gross profit was $1,515,956 for the three-months ended March 31, 2013, up $205,237 (15.7%) from $1,310,719 for the three-months ended March 31, 2012, and down $122,743 (7.5%) from $1,638,699 for the three-months ended December 31, 2012;
- Operating expenses were $2,041,056 for the three-months ended March 31, 2013, up $10,393 (0.5%) from $2,030,663 for the three-months ended March 31, 2012, and down $2,781,715 (57.7%) from $4,822,771 for the three-months ended December 31, 2012; and
- Included in cost of sales and operating expenses for the three-months ended March 31, 2013, March 31, 2012 and December 31, 2012 were certain one-time non-recurring expenditures, non-cash amortization of intangible assets and property plant and equipment, non-cash stock-based compensation expense and non-cash impairment to assets totaling $383,505, $371,945 and $3,048,082 respectively.
Non-IFRS 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-IFRS measures, refer to the Company's quarterly management discussion and analysis for the three-months ended March 31, 2013.
Additional information on Posera- HDX's first quarter 2013 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.hdxsolutions.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 Limited 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 113 value added reseller partners in 25 countries with approximately 600 representatives selling, supporting & installing its software. Posera-HDX employs approximately 135 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.
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-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 filed on March 28th, 2013 with the regulatory authorities. Posera-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.
For further information:
Chief Executive Officer
Posera-HDX Limited (HDX)
350 Bay Street, Suite 700
Toronto, Ontario M5H 2S6
(416) 703-6462 ext. 2263