2013-06-28 10:07 AT - News Release
Mr. Doug Buchanan reports
VENDTEK SYSTEMS ANNOUNCES Q2 FISCAL 2013 FINANCIAL RESULTS
VendTek Systems Inc. has released its financial results for its fiscal second quarter ended April 30, 2013.
Selected Financial Information
* Revenues for the quarter ended April 30, 2013 decreased $3.6 million to $20.2 million, or 15.1% from $23.8 million for the corresponding period in fiscal 2012; * Gross profit for Q2 FY2013 held steady at $1.3 million, while gross profit increased from 5.7% to 6.6%, respectively, compared to the corresponding period in fiscal 2012; * A non-cash impairment charge of $0.7 million was recorded for the Company's Mobile Commerce Platform (MCP); * Operating expenses held steady at $2.1 million (exclusive of the impairment charge); * Adjusted EBITDA(1)loss of $0.7 million for Q2 FY2013 compared to a loss of $0.6 million for the prior comparable period; * Net loss was $1.7 million compared to $0.9 million in the prior comparable period; * Cash used in operations was $1.4 million for Q2 FY2013, compared to $1.1 million cash generated in operations in the prior comparable period; * Cash and cash equivalents was $2.0 million at April 30, 2013 compared to $3.8 million in the prior comparable period.
"Our results for the past several quarters have demonstrated the anticipated reduction in transactional volume of our Canadian prepaid wireless business", said Doug Buchanan, President and Chief Executive Officer of VendTek. "Despite this expected decline in Canada, we are pleased that our Brazil operations are demonstrating traction in the growth of registered terminals, which is an important sales metric. During the second quarter we increased our registered terminal count by about 1,000 units, which was our strongest quarter to date. Once these terminals are installed and activated we can expect increased transactional and revenue generating activity, said Mr. Buchanan.
"The Company's Q2 FY2013 financials yielded some important results", commented Irwin Studen, Interim Chief Financial Officer of VendTek. "VendTek continued to show consistent year-over-year gross profit resulting from its higher margin Brazil initiatives, despite the falloff in Canadian-based revenue. From a liquidity standpoint, the Company reported a lower cash position and weaker operating cash flow for Q2 FY2013 compared to the prior comparable period. This was primarily due to the current quarter ending on the Company's lowest cash day of its weekly collection cycle (Tuesday) compared to the highest cash day in the prior period (Wednesday), added Mr. Studen, "As discussed in our MD&A, we continue to explore financing options for the Company to ensure the viability of its ongoing operations."
Subsequent Events
* On June 27, 2013 the Company announced that it secured approximately US$459,000 in a supplier based letter of credit facility from a major international bank for its Brazil operations.
VendTek's MD&A and complete financial statements and notes are available at www.sedar.com and the Company's website www.vendteksystems.com.
For more information or to receive the complete statements please contact Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.
Conference Call
VendTek management will host a conference call on July 2, 2013 at 10:30 AM EDT (7:30 AM PDT) to discuss its financial results and operational highlights for its fiscal second quarter ended April 30, 2013.
To access the conference call by telephone, dial 1-416-764-8688 or 1-888-390-0546 and reference the company name, VendTek Systems Inc. or conference ID 31934204.
A live audio webcast of the conference call will be available at https://www.newswire.ca/en/webcast/detail/1129867/1232381. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.
VENDTEK SYSTEMS INC.
Consolidated Interim Statements of Operations and Comprehensive Loss
(All amounts expressed in Canadian dollars)
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Three and six months ended April 30, 2013 and 2012
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Three months ended April 30, Six months ended April 30,
2013 2012 2013 2012
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Revenue:
Products and
service revenue $20,184,562 $23,820,482 $41,004,670 $48,121,340
Cost of product and
service revenues 18,853,688 22,464,122 38,307,924 45,376,322
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Operating expenses:
Gross profit 1,330,874 1,356,360 2,696,746 2,745,018
General and
Administrative 1,440,689 1,430,662 2,915,619 2,864,519
Selling and marketing 433,849 423,468 833,491 926,562
Research and development 260,854 222,360 476,486 459,947
Impairment of non-financial
assets (note 13) 671,942 - 671,942 -
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Total operating
expenses (note 11) 2,807,334 2,076,490 4,897,538 4,251,028
Loss before finance
cost, loss (gain) on
disposal of assets,
and foreign
exchange loss (gain) (1,476,460) (720,130) (2,200,792) (1,506,010)
Finance cost (note 12) 172,073 188,601 346,314 380,063
Loss (gain) on
disposal of assets 9,016 (9,536) 15,443 (7,169)
Foreign exchange
loss (gain) 5,015 (9,152) 1,166 (49,803)
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Net loss for period (1,662,564) (890,043) (2,563,715) (1,829,101)
Other comprehensive income (loss):
Foreign currency
translation difference 3,168 (228,867) 21,805 (423,757)
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Comprehensive loss $(1,659,396) $(1,118,910) $(2,541,910) $(2,252,858)
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Net loss per common share (note 15):
Basic and diluted $(0.03) $(0.02) $(0.04) $(0.04)