TORONTO, May 25, 2021 (GLOBE NEWSWIRE) -- Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS), a premier Microsoft Cloud Services and Payment Solutions Provider, today reported financial results for the first quarter ended March 31, 2021.
Management Commentary
“Even with the number of positive milestones and transitions that have occurred year to date, we remain focused on executing our operations during this period of growth,” said Quisitive CEO Mike Reinhart. “We have garnered considerable traction within both divisions of our business and are laser-focused on executing our respective near- and long-term goals. Our team continues to expand our portfolio of offerings to our customers in the cloud solutions business and we are preparing for full commercialization of LedgerPay in the second half of this year. The recently completed acquisition of BankCard and early integration of Mazik Global into Quisitive adds significant accretive value to both segments of our business. Looking ahead, we intend to continue our acquisition strategy to support both the cloud solutions and payments business to further augment our capabilities through the end of this fiscal year. We are encouraged by our progress so far and look forward to further unveiling Quisitive’s potential.”
First Quarter 2021 Financial Results
The Company’s audited financial statements for the quarter ended March 31, 2021 and related management’s discussion and analysis can be found on the Company’s website and on the Company’s issuer profile on SEDAR at www.sedar.com. All figures are expressed in United States dollars unless otherwise stated .
- Revenue increased to $12.7 million compared to $10.9 million for the quarter ended March 31, 2020. The increase in revenue was due to organic growth within the cloud services customer base achieved through adding additional engagements and through cross-selling.
- Gross profit increased to $4.3 million (34% of revenue) compared to $4.0 million (37% of revenue) for the quarter ended March 31, 2020. The increase in gross profit was due to the increase in revenue and the decrease in margin was due to additional recurring revenues from lower margin CSP sales.
- Adjusted EBITDA increased to $1.2 million (or 9% of revenue) compared to an Adjusted EBITDA of $1.1 million (or 10% of revenue) for the three months ended March 31, 2020. This reflects the growth in top line revenue and lower margin CSP revenue streams in the first quarter of 2021 as well as operational interruptions with the Dallas winter storms in the first quarter of 2021.
- Net loss was $1.9 million or loss of $(0.01) per share compared with net loss of $4.3 million or a loss of $(0.04) per share for the three months ended March 31, 2020. Net loss was reduced primarily due to the repayment of convertible debentures issued in the acquisition of Menlo in fiscal 2020 that caused significant non-cash mark to market losses in the first quarter of fiscal 2020.
First Quarter 2021 and Recent Operational Highlights
- Recognized as a 2021 ‘Venture 50’ company by the TSX Venture Exchange.
- Completed acquisition of Mazik Global Inc.
- Completed the transformational acquisition of BankCard USA.
- Announced the closing of C$62.6 million financing transaction in connection with the acquisition of BankCard USA Merchant Services, Inc. and increased the debt facility with Scotiabank by $50 million USD.
- Announced closing of a private placement with FAX Capital Corp. pursuant to which FAX purchased 16,000,000 common shares of Quisitive from treasury at a price of C$1.25 per Common Share for gross proceeds of C$20,000,000.
- Achieved Independent Standards Organization 27001 and 22301 certifications for LedgerPay.
- Executed letter of intent with a major merchant acquiring bank as a sponsor for direct payment processing for Visa, Mastercard, and other major credit and debit card brands.
- Achieved Microsoft Co-sell ready status for LedgerPay which officially activates Microsoft’s sales team in assisting with commercializing the product.
- Earned the Windows Server & SQL Migration to Microsoft Azure advanced specialization , a validation of a Microsoft partner's deep knowledge, extensive experience, and expertise in migrating Windows Server and SQL Server-based workloads to Azure.
- Accelerated the expiry date of the common share purchase warrants issued on June 26, 2020.
- Retained payments industry leaders to assist with the execution of Quisitive's LedgerPay strategy including mergers and acquisitions and payments solutions operations planning.
- Engaged banking and financial technology industries expert Adrian Martinez as an advisor to the development of Quisitive’s LedgerPay risk management program.
Conference Call
Quisitive management will hold a conference call today (May 25) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.
Company CEO Mike Reinhart and CFO Michael Murphy will host the call, followed by a question and answer period.
Canada/U.S. dial-in: 800-319-4610
International dial-in: 416-915-3239
Please dial-in approximately 10 minutes beforehand and ask to join the Quisitive conference call. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
A telephonic replay of the conference call will be available after 8:00 p.m. Eastern time.
Toll-free replay number: 800-319-6413
International replay number: 604-638-9010
Replay ID: 6966
For additional information, please visit the Investor Relations section of Quisitive’s website at: https://quisitive.com/investor-relations/ .
About Quisitive
Quisitive (TSXV: QUIS) is a premier, global Microsoft partner that harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate transformational impact for enterprise customers. Our Cloud Solutions business focuses on helping enterprises move, operate, and innovate in the three Microsoft clouds. Centering on our LedgerPay product suite, our Payments Solutions business leverages the Microsoft Azure cloud to transform the payment processing industry into an entirely new source of customer engagement and consumer value. Quisitive serves clients globally from ten employee hubs across the world. For more information, visit www.quisitive.com and follow @BeQuisitive.
Quisitive Company Contact
Tami Anders, Chief of Staff
tami.anders@Quisitive.com