TORONTO, May 15, 2013 /CNW/ - Posera-HDX Ltd. (TSX: HDX) (the "Company"
or "Posera-HDX") announced today its financial results for the
three-months ended March 31st, 2013. Posera-HDX is listed on the TSX under the symbol "HDX".
Paul Howell, Chief Executive Officer, reports:
Although the first quarter is traditionally a slow period for new system
sales in the hospitality industry, Company revenue was strong at
$4,093,586 for the three-months ended March 31, 2013, an increase of
$463,542 (12.8%) from $3,630,044 for the three-months ended March 31,
2012.
The Company continues to pursue strategic acquisitions within the
point-of-sale and payments industries and has recently announced a
letter of intent to acquire Zomaron Inc., operating as Zomaron Merchant
Services ("Zomaron").
Founded in 2008, Zomaron provides credit and debit card processing
solutions to Canadian merchants nationwide. Based in London, Ontario,
Zomaron has offices in Edmonton AB, Toronto ON, and Montreal QC.
Through its nation-wide network of sales representatives and strategic
partnerships, Zomaron has experienced rapid growth, doubling its sales
annually. Zomaron's exponential growth led it to be ranked NO.15 on
PROFIT magazine's 13th annual PROFIT HOT 50 ranking released in its October 2012 issue.
Zomaron's solutions and services can also be marketed and deployed in
the United States.
In keeping with the Company's long term business plan, Posera-HDX
continues to make significant investments to enhance systems,
facilities, and operating procedures in order to secure and maintain
the necessary approvals to operate a payment processing switch and an
ATM transaction processing switch. Team members and contractors with
the appropriate industry expertise have been retained to allow the
Company to develop the payment processing division with an eye toward
monetizing the Company's investment in this division as quickly as
possible.
The Company has experienced a Normalized EBITDA loss for the
three-months ended March 31, 2013 of $276,402, a decrease of $45,711
from a Normalized EBITDA loss of $322,113 for the three-months ended
March 31, 2012. The Company incurred amortization of acquired
intangible assets of $326,065 (2012- $320,407) and amortization of
property plant and equipment was $36,921 (2012 - $47,036) for the
three-months ended March 31, 2013 and 2012 respectively. HDX Payment
Processing Ltd. (formerly Cash N Go Ltd. a payments processing company)
experienced an EBITDA loss for the three-months ended March 31, 2013 of
$134,272, an increase of $13,529 from an EBITDA loss of $120,743 for
the three-months ended March 31, 2012. Additionally, Posera-HDX
Scheduler Inc. (the acquired assets of 2020 ITS Inc.) experienced
EBITDA income for the three-months-ended March 31, 2013 of $6,521, an
increase of $20,448 from an EBITDA loss of $13,927 for the three-months
ended March 31, 2012. The Company expects to continue to make
significant investments in these divisions into the foreseeable future
and will strive to increase revenue for these divisions and products as
quickly as possible.
Quarterly Highlights and Summary
-
Total revenue was $4,093,586 for the three-months ended March 31, 2013,
up $463,542 (12.8%) from $3,630,044 for the three-months ended March
31, 2012 and down $443,942 (9.8%) from $4,537,528 for the three-months
ended December 31, 2012;
-
Net loss for the three-months ended March 31, 2013 was a loss of
$600,724, a decrease of $174,593 from a loss of $775,317 for the
three-months ended March 31, 2012, and a decrease of $2,296,165 from a
loss of $2,896,899 for the three-months ended December 31, 2012;
-
EBITDA loss for the three-months ended March 31, 2013, was $296,920, a
decrease of $29,695 from an EBITDA loss of $326,615 for the
three-months ended March 31, 2012, and a decrease of $137,178 from an
EBITDA loss of $434,098 for the three-months ended December 31, 2012;
-
Normalized EBITDA loss for the three-months ended March 31, 2013 was
$276,402, a decrease of $45,711 from a Normalized EBITDA loss of
$322,113 for the three-months ended March 31, 2012, and an increase of
$104,029 from a Normalized EBITDA loss of $172,373 for the three-months
ended December 31, 2012;
-
Gross profit was $1,515,956 for the three-months ended March 31, 2013,
up $205,237 (15.7%) from $1,310,719 for the three-months ended March
31, 2012, and down $122,743 (7.5%) from $1,638,699 for the three-months
ended December 31, 2012;
-
Operating expenses were $2,041,056 for the three-months ended March 31,
2013, up $10,393 (0.5%) from $2,030,663 for the three-months ended
March 31, 2012, and down $2,781,715 (57.7%) from $4,822,771 for the
three-months ended December 31, 2012; and
-
Included in cost of sales and operating expenses for the three-months
ended March 31, 2013, March 31, 2012 and December 31, 2012 were certain
one-time non-recurring expenditures, non-cash amortization of
intangible assets and property plant and equipment, non-cash
stock-based compensation expense and non-cash impairment to assets
totaling $383,505, $371,945 and $3,048,082 respectively.
Non-IFRS Reporting Measures: Management reports on certain Non-IFRS
("International Financial Reporting Standards") measures to evaluate
performance of the Company. Non-IFRS measures are also used to
determine compliance with debt covenants and manage the capital
structure. Because non-IFRS measures do not generally have a
standardized meaning, securities regulations require that non-IFRS
measures be clearly defined and qualified, and reconciled with their
nearest IFRS measure. The Canadian Institute of Chartered Accountants
(CICA) Canadian Performance Reporting Board has issued guidelines that
define standardized earnings before interest, taxes, depreciation and
amortization (EBITDA). For definitions of Non-IFRS measures, refer to
the Company's quarterly management discussion and analysis for the
three-months ended March 31, 2013.
Additional information on Posera- HDX's first quarter 2013 financial
results will be available in the financial reports filed by the Company
with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website
at www.hdxsolutions.com.
About the Company
Posera-HDX is in the business of managing merchant transactions with
consumers and facilitating payment. The Company develops and deploys
touch screen POS system software and associated enterprise management
tools and has developed and deployed numerous POS applications.
Posera-HDX also provides system hardware integration services, merchant
staff training, system installation services, and post sale software
and hardware support services.
Posera-HDX leading edge technology also includes prepaid stored value
payments solutions, customer self serve kiosks and "line buster" mobile
point of sale terminals. These products have been designed to
dramatically enhance customer throughput and drastically reduce
customer queues. These technologies are especially effective in high
foot traffic environments that have limited cash register counter
space, limited retail square footage, and the absence of a drive
through.
Posera-HDX Limited develops, deploys, and supports a restaurant
point-of-sale software know as "Maitre'D" which has been deployed in
over 20,000 locations worldwide in eight different languages. The
Company sells and services its clients directly, as well as through a
network of approximately 113 value added reseller partners in 25
countries with approximately 600 representatives selling, supporting &
installing its software. Posera-HDX employs approximately 135 people
in offices in Toronto, London, Brantford, Mississauga, Seattle,
Montreal, Glasgow (U.K.), Paris (France) and Singapore.
Forward-Looking Statements
This discussion includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with our business and the environment in which the business
operates. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking, including those
identified by the expressions "anticipate", "believe", "plan",
"estimate", "expect", "intend", and similar expressions to the extent
they relate to the Company or its management. The forward-looking
statements are not historical facts, but reflect Posera-HDX's current
expectations regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from current
expectations, including the matters discussed under "Risks and
Uncertainties" in the Annual Information Form filed on March 28th, 2013 with the regulatory authorities. Posera-HDX assumes no
obligation to update the forward-looking statements, or to update the
reasons why actual results could differ from those reflected in the
forward-looking statements.
SOURCE: Posera-HDX
