June 30, 2021 Quarterly Results Reports 19% Increase in Revenues Over the Same Period Last Year
TORONTO, ON / ACCESSWIRE / August 19, 2021 / AirIQ Inc. ("AirIQ") (TSXV:IQ), a leader in wireless asset management services, today announced its financial results for the three months ended June 30, 2021, reporting a 3% increase in recurring revenue and a 106% increase in hardware revenues, resulting in a total revenue increase of 19% compared to the same period the prior year; as well as an 11% increase in gross profit compared to the three months ended June 30, 2020.
"We are very pleased with the increase in revenues and gross profit", said Mike Robb, President and Chief Executive Officer of AirIQ, "as those key metrics continue to be the Company's focus to increase profitability", continued Mr. Robb. "The 106% increase in hardware revenue resulted from another large order from one of our major rental companies, as previously announced. In addition, the Company continues to concentrate on developing leading-edge technology solutions for our customers to drive further revenue growth", stated Mr. Robb.
All dollar amounts set out herein are in Canadian dollars.
Highlights for the year are as follows:
First Quarter Highlights (for the three months ended June 30, 2021 compared to June 30, 2020)
- Total revenue of $1,081,795 for the three months ended June 30, 2021 increased by 19% or $168,970 compared to $912,825 for the prior year period.
- Hardware and other revenue of $279,961 for the three months ended June 30, 2021 increased by 106% or $143,766 compared to $136,195 for the prior quarter.
- Recurring revenue of $801,834 for the three months ended June 30, 2021 increased by 3% or $25,204 compared to $776,630 for the prior year period.
- Gross profit of $662,935 for the three months ended June 30, 2021 increased by 11% or $62,825 compared to $600,110 for the prior year period.
- Gross margin of 61% for the three months ended June 30, 2021 decreased by 5% compared to 66% for the prior year period.
- EBITDAS of $280,857 for the three months ended June 30, 2021 decreased by 1% or $3,182 compared to $284,039 for the prior year period.
- Net income of $174,816 for the three months ended June 30, 2021 decreased 3% or $6,470 compared to $181,286 for the prior year period.
- Cash balance of $1,841,122 for the three months ended June 30, 2021 decreased by 9% or $183,590 compared to $2,024,712 for the prior year period.
- Working capital of $2,425,478 for the three months ended June 30, 2021 increased by 5% or $106,398 compared to $2,319,080 for the prior year period. (Working capital has been calculated by netting current assets, excluding current costs of deferred revenues, and current liabilities, excluding deferred revenue that are non-cash items.)
Business Review
The Company is focusing its efforts and resources on revenue growth and profitability by continuing to offer leading-edge technology solutions for existing and new customers. We continue to focus on recurring revenues, gross profits and improving cash-flows to build a sustainable business and managing the effects of COVID-19.
Normal Course Issuer Bid
The Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the "Bid") with the TSX Venture Exchange ("TSXV") commencing April 13, 2021 and ending on April 12, 2022. Pursuant to the Bid, the Company proposed to purchase through the facilities of the TSXV up to 1,504,252 common shares of the Company, representing 5% of the Company's then current issued and outstanding common shares.
During the quarter ended June 30, 2021, the Company repurchased for cancellation 198,500 common shares pursuant to the Bid for an average of $0.27 per share, for an aggregate consideration paid of approximately $53,595 plus a broker fee in the aggregate of $1,985.
Stock Option Plan
During the three months ended June 30, 2021, options for a total of 150,000 common shares in the capital of the Company were exercised for an aggregate consideration of $22,500, and 150,000 common shares were issued from treasury.
As of August 18, 2021, the Company has a total of 30,036,574 common shares issued and outstanding.
Overview
The Company's unaudited consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
Financial Statements & MDA
The Company's consolidated condensed interim financial statements for the three months ended June 30, 2021 and 2020 including notes thereto, and Management's Discussion and Analysis for the same period are being filed with the Canadian securities regulatory authorities on today's date, and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com). The Company's financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.