Q3 resultsZedi announces record Q3 2011 financial results
CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED): Q3 2011 marks the highest quarterly revenue in the company's history, reflecting solid execution by the Zedi team on all fronts. Revenues for Q3 2011 were $23,563,000 compared to $14,445,000 for Q3 2010, representing an increase of 63%. Operations continue to generate strong cash flow, with cash from operations prior to working capital changes of $3,975,000 generated in Q3 2011, a 96% increase compared to the $2,024,000 generated in Q3 2010. Closing working capital for Q3 2011 remains very strong at $14,322,000.
Profit before taxation increased 81% in Q3 2011 at $2,144,000 or
.02 per common share, compared to $1,187,000 or
.01 per common share for Q3 2010. This result was attributed to 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. EBITDA(1) for Q3 2011 was $3,893,000, an 89% increase compared to $2,061,000 in Q3 2010. The Q3 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.
Recurring revenue for Q3 2011 increased to 212% of operations expenses, up from 183% in Q3 2010. Recurring revenue as a percentage of the Company's total cash expenditures, which include operations expenses, deferred development costs and capital asset purchases, increased to 185% for Q3 2011 from 167% in Q3 2010. The Company believes that these two measures are significant indicators of performance and sustainability, which are further described in section 12 of the Management Discussion and Analysis.
"The acquisitions we have made over the last year continue to contribute solid financial results, meeting or exceeding expectations in all cases. We continue to expand our oil solutions, including our recently acquired SilverJack hydraulic pump technology. We appreciate the on-going commitment of our customers, who count on us for continued customer excellence in service and support", said Matthew Heffernan, Zedi President & CEO.
Zedi Inc. (TSX VENTURE:ZED) provides integrated services, applications, and technology to oil and gas producers to help efficiently manage their production operations. Having established a leadership position in our base market, we continue to grow globally by operating in 25 countries around the world. Our expertise helps producers increase revenue while reducing operating costs and ensuring regulatory compliance.
EBITDA is a non-IFRS measure that is commonly used by industry to normalize non-operating factors that are included in net income. EBITDA is Earnings before interest, taxes, depreciation and amortization. See section 12 of the Management Discussion and Analysis for further detail.