ZED NewsZedi announces Q2 2011 financial results
19:45 EDT Thursday, August 11, 2011
CALGARY, ALBERTA--(Marketwire - Aug. 11, 2011) - Zedi Inc.(the "Company" or "Zedi") (TSX VENTURE:ZED) "Despite the extended springbreak-up in western Canada, the company set another all-time record for Q2revenues. Strong performance from Southern Flow, as well as the addition of newrevenue streams from ENRAK Consulting and Silver Jack Artificial Liftcontributed to these results. The effective integration of these accretiveacquisitions and strong performance by our incumbent business units sets thestage for a strong finish to 2011," said Matthew Heffernan, Zedi President &CEO. The Q2 2011 interim financial statements and MD & A are filed on SEDARand can be accessed at www.sedar.com or on the Company'swebsite at www.zedi.ca.
Revenues for Q2 2011 were $20,457,000 compared to $13,148,000 in Q2 2010,surpassing all previous records for second quarter results. Operations continueto generate strong cash flow, with cash from operations prior to working capitalchanges of $2,589,000 generated in Q2 2011 compared to $1,425,000 during Q22010. Closing working capital for Q2 2011 remains very strong at$13,099,000.
EBITDAS(1) for Q2 2011 was $2.46 million, a 63% increase comparedto $1.51 million in Q2 2010. This result arose through continued solidperformance by the new US subsidiary, Southern Flow, which was acquired in anall-cash deal, supported domestically by strong recurring revenue and anincrease in field operations activity. Profit before taxation for Q2 2011 was$780,000 compared to $558,000 for Q2 2010.
Recurring revenue for Q2 2011 increased to 204% of operations expenses, upfrom 172% in Q2 2010. Recurring revenue as a percentage of the Company's totalcash expenditures, which in addition to operations expenses includes deferreddevelopment and capital asset purchases increased to 173% for Q2 2011 up from145% in Q2 2010. The Company believes that these two measures are significantindicators of performance and sustainability.
Zedi Inc. (TSX VENTURE:ZED) provides integrated services, applications, andtechnology to oil and gas producers to help efficiently manage their productionoperations. Having established a leadership position in our base market, wecontinue to grow globally by operating in 25 countries around the world. Ourexpertise helps producers increase revenue while reducing operating costs andensuring regulatory compliance.
- EBITDAS and EBITDA are non-IFRS measures that are commonly used by industry to normalize non-operating factors that are included in net income. EBITDA is Earnings before interest, taxes, depreciation and amortization while EBITDAS also excludes stock-based compensation. See section 12 of the Management Discussion and Analysis for further detail.
- Zedi plans to resume quarterly investor conference calls following the release of Q3 results in November.