OTTAWA, March 27, 2014 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch")
(TSXV: INX) announces that revenues remained stable at $10,657,475 in
FY 2013 compared to $10,719,792 in FY 2012. Net earnings for 2013 were
$131,675 compared to $1,032,218 in 2012, and net earnings per share for
2013 were $0.01 compared to $0.07 for 2012. Earnings from operating
activities were $242,669 in 2013 compared to $761,362 in 2012. The
Company-defined adjusted EBITDA, as described in the Company's
Management Discussion and Analysis was $824,000 in FY 2013, compared to
$1,204,000 in FY 2012.
"The year 2013 was defined by the acquisition and integration of the
Field Research division of NAVEX Global, Inc. as well as adjusting to
the changing marketplace around the Service Intelligence product
lines. Net income and EBITDA were down in 2013 because of increased
investment in product development, sales and marketing and the
recording of a deferred tax asset in 2012. As was stated in our press
release of November 21, 2013, we are in the process of replacing 25% of
our historical volume. It is anticipated that this replacement will
come from growth in the EventMatrix and IPSG products combined with new
product introductions under the Service Intelligence brand. The
investments made in 2013 have laid the groundwork for the EventMatrix
growth and the Service Intelligence product introductions. In 2014 we
plan to introduce one new innovative SaaS product and one new niche
product in the auditing space to secure our future for 2015 and
beyond", said Cameron Watt, President & Chief Executive Officer.
"In addition to the introduction of new products, and as previously
announced, In-Touch will also 'spin-out' technologies into separate
companies when we believe that an external corporate structure provides
the greatest probability of success for the product and value for our
shareholders. We anticipate the initial announcement of one of these
new companies in the next month code named Project September ("PS").
PS is working on a SaaS product in the consumer privacy and
personalization market," said Mr. Watt.
Gross margins increased significantly to 55% in 2013 compared to 49% in
2012 as overheads associated with the Service Intelligence business
combination, were eliminated. The company expects 2014 gross margins in
the range of 55 to 60 percent.
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Consolidated Statements of Comprehensive Earnings
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2013
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2012
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Revenue
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$
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10,657,475
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$
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10,719,792
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Cost of services
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4,832,250
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5,510,707
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Gross profit
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5,825,225
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5,209,085
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Total operating expenses
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5,582,556
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4,447,723
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Earnings from operating activities
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242,669
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761,362
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Finance costs
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(44,601)
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(112,835)
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Change in fair value of contingent payment
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27,257
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(16,179)
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Deferred tax recovery (expense)
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(93,650)
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407,950
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Current income tax
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-
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(8,080)
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Net earnings and other comprehensive earnings
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$
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131,675
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$
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1,032,218
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Weighted average number of common shares - basic
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14,907,978
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14,028,257
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Certain statements included in this news release contain forward looking
statements, which by their nature are necessarily subject to risks and
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such statements reflect
the Company's current views with respect to future events, and are
based on information currently available to the Company and on
hypotheses which it considers to be reasonable; however, management
warns the reader that hypotheses relative to future events which are
beyond the control of management could prove to be false, given that
they are subject to certain risks and uncertainties.
The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
SOURCE In-Touch Survey Systems Ltd.
