Zedi announces Q2 2011 financial results
Zedi Inc ZED
8/11/2011 7:46:18 PM
CALGARY, ALBERTA, Aug 11, 2011 (Marketwire via COMTEX News Network) --
Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) "Despite the extended spring break-up in western Canada, the company set another all-time record for Q2 revenues. Strong performance from Southern Flow, as well as the addition of new revenue streams from ENRAK Consulting and Silver Jack Artificial Lift contributed to these results. The effective integration of these accretive acquisitions and strong performance by our incumbent business units sets the stage for a strong finish to 2011," said Matthew Heffernan, Zedi President & CEO. The Q2 2011 interim financial statements and MD & A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website 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 continue to generate strong cash flow, with cash from operations prior to working capital changes of $2,589,000 generated in Q2 2011 compared to $1,425,000 during Q2 2010. 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 compared to $1.51 million in Q2 2010. This result arose through continued solid performance by the new US subsidiary, Southern Flow, which was acquired in an all-cash deal, supported domestically by strong recurring revenue and an increase 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, up from 172% in Q2 2010. Recurring revenue as a percentage of the Company's total cash expenditures, which in addition to operations expenses includes deferred development and capital asset purchases increased to 173% for Q2 2011 up from 145% in Q2 2010. The Company believes that these two measures are significant indicators of performance and sustainability.