RMS Systems Inc. Releases 2013 Second Quarter Financial Statement
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Calgary, Alberta CANADA, August 27, 2013 /FSC/ - RMS Systems Inc. (RMS - TSX Venture), ("RMS" or the "Corporation") (TSXV: RMS) is pleased to announce that it has filed its 2013 second quarter financial statements and MD&A on SEDAR. The highlights from these statements are as follows:
* EBITDA of $(690,820) compared to $49,733 for Q1 of 2013 and $(862,899) for Q2, 2012.
* Rental revenues were $800,099 for the quarter, 24% lower than Q2, 2012 and 53% lower than Q1, 2013. This reflects the reduced activity levels due to spring break up in Canada and due to the sale of the US and International Operations in Q2 of 2012.
* Service expenses were $563,441 for the quarter, a reduction of 2% from Q1, 2013 and 25% from Q2, 2012, reflecting the ongoing focus on cost management, the reduction of field service technicians employed over spring break up and the impact of reduced rental equipment being utilized in the field.
* G & A expenses were $1,003,841 a reduction of 7% from Q1, 2013 and a reduction of 25% from Q2, 2012.
* Gross margins for the quarter were 29.6% as compared to 66.0% for Q1, 2013 and 27.9% for Q2 2012.
The Corporation is focussed on product, service and image and is continually improving its product suite which it believes will enable it to gain significantly more market share over the remainder of 2013 and into 2014. The Corporation is preparing to launch a number of new products to the market on September 19th, 2013, that it expects will be well received by its customers leading to increases in revenues.
For further information, please contact:
Mr. Dave Hall
RMS SYSTEMS INC.,
Bay 10, 3491 12th Street NE
Calgary, Alberta T2E 6S6
Tel: (403) 717-9694
Cautionary Statements
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects, including the use of proceeds from the Offering and the Bridge Loan, the approval of the Offering by shareholders of the Corporation, the completion of the Offering and Bridge Loan, the anticipated closing date of the Offering and the ability of the Corporation to repay the Bridge Loan that constitute forward looking statements.
These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RMS believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The closing of the Offering may not be completed if definitive documentation cannot be finalized, the shareholders of RMS do not approve the Offering at the Meeting, or RMS is unable to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned or if some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time, on the terms currently proposed, or at all, and the ability and timing of the Corporation to repay the Bridge Loan may change. The intended use of the proceeds of the Offering by RMS might change if the board of directors of RMS determines that it would be in the best interests of RMS to deploy the proceeds for some other purpose. The forward looking statements contained in this press release are made as of the date hereof and RMS undertakes no obligations to update publically or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view this press release as a PDF file, please click on the following link:
http://www.usetdas.com/pr/rms08272013.pdf
Source: RMS Systems Inc. (RMS - TSX-V)
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