LEVIS, QUEBEC--(Marketwired - Oct. 23, 2014) - DEQ Systems Corp. (TSX VENTURE:DEQ) ("DEQ" or the "Company") announces the filing of its third quarter financial results for the period ended August 31, 2014. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website. A conference call will be held on Friday, October 24, 2014 at 9am EST to present and discuss these results. Those interested in participating in the call should dial toll free 1 (877) 223-4471 or +1 (647) 788-4922. A presentation will be available on DEQ's website in the Investors/Financial Reports/Presentation section to support the call content.
2014 Third Quarter Results:
Financial Metrics
- Revenue
- Twelve-Month Period:
- 17% increase in total recurring revenue to $7,270,000 as compared to $6,227,000 for the same period ended August 31, 2013.
- Nine-Month Period:
- 18% increase in product rental revenue to $4,691,000 in 2014 as compared to last year.
- 13% increase in total recurring revenue to $5,468,000 in 2014 as compared to last year.
- 11% increase in total revenue to $5,613,000 in 2014 as compared to last year.
- Third Quarter:
- 7% increase in product rental revenue to $1,542,000 in Q3-2014 as compared to last year.
- 2% increase in total recurring revenue to $1,778,000 in Q3-2014 as compared to last year.
- 3% increase in total revenue to $1,810,000 in Q3-2014 as compared to last year.
- Operating Expenses before non-cash items
- 3% decrease in operating expenses to $5,406,000 for the twelve-month period ending August 31, 2014 as compared to the same period last year.
- 1% increase in operating expenses to $4,086,000 for the nine-month period ending August 31, 2014 as compared to the same period last year.
- Stable operating expenses of $1,303,000 in Q3-2014 as compared to $1,308,000 in Q3-2013.
- EBITDA
- EBITDA of $1,187,000 for the twelve-month period ending August 31, 2014 as compared to $72,000 for the same period ending August 31, 2013, an increase of $1,115,000.
- EBITDA of $860,000 for the nine-month period ending August 31, 2014 as compared to $278,000 for the same period in 2013, an increase of $582,000.
- EBITDA of $305,000 in Q3-2014 as compared to $156,000 in Q3-2013, an increase of $149,000.
- Cash Position and Cash Flow
- During the third quarter of 2014, the Company increased its cash position by $351,000 from $1,332,000 as of May 31, 2014 to $1,683,000 as of August 31, 2014.
- Positive cash flow from operating activities before working capital items of $316,000 in Q3-2014 as compared to $158,000 in Q3-2013, due to the increase in EBITDA for the quarter.
| |
|
| |
|
| Statement of Earnings |
|
| (unaudited) |
Third Quarter |
|
Nine Months Period |
|
| |
August 31, 2013 |
|
August 31, 2014 |
|
August 31, 2013 |
|
August 31, 2014 |
|
| |
|
|
|
|
|
|
|
|
| Total Recurring Revenue |
|
1,741,000 |
|
|
1,778,000 |
|
|
4,849,000 |
|
|
5,468,000 |
|
| Non-recurring revenue |
|
22,000 |
|
|
32,000 |
|
|
228,000 |
|
|
145,000 |
|
| Total Revenue |
|
1,763,000 |
|
|
1,810,000 |
|
|
5,077,000 |
|
|
5,613,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit (1) |
|
1,464,000 |
|
|
1,608,000 |
|
|
4,332,000 |
|
|
4,946,000 |
|
| % Gross margin |
|
83 |
% |
|
89 |
% |
|
85 |
% |
|
88 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses (1) |
|
1,308,000 |
|
|
1,303,000 |
|
|
4,054,000 |
|
|
4,086,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA (2) |
|
156,000 |
|
|
305,000 |
|
|
278,000 |
|
|
860,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Stock based compensation |
|
5,000 |
|
|
6,000 |
|
|
153,000 |
|
|
20,000 |
|
| Amortization expenses |
|
704,000 |
|
|
679,000 |
|
|
2,084,000 |
|
|
2,011,000 |
|
| Interest expenses |
|
4,000 |
|
|
2,000 |
|
|
12,000 |
|
|
7,000 |
|
| Foreign exchange (gain) loss |
|
15,000 |
|
|
63,000 |
|
|
1,000 |
|
|
141,000 |
|
| Net Income (Loss) |
|
(572,000 |
) |
|
(445,000 |
) |
|
(1,972,000 |
) |
|
(1,319,000 |
) |
| Net Income (Loss ) per share |
$ |
(0.008 |
) |
$ |
(0.006 |
) |
$ |
(0.028 |
) |
$ |
(0.018 |
) |
| |
|
| Note 1: |
Gross profit and operating expenses exclude non-cash items such as depreciation, amortization and stock based compensation. |
| |
|
| Note 2: |
We use EBITDA (Earnings before Stock option based compensation, Interest, Taxes, Depreciation, Amortization and Foreign exchange) as performance measurements in our financial disclosure. This measure is not recognized under IFRS. The reconciliations above demonstrate how we calculate such measurements from our financial statements. |
| |
| |
| Financial Position |
| |
November 30,
2013 |
May 31,
2014 |
August 31,
2014 |
| |
(audited) |
(unaudited) |
(unaudited) |
| |
|
|
|
| Cash and cash equivalents |
1,565,000 |
1,332,000 |
1,683,000 |
| Current assets (other than cash) |
2,175,000 |
2,611,000 |
2,436,000 |
| Long-term assets |
6,576,000 |
5,448,000 |
4,906,000 |
| Total Assets |
10,316,000 |
9,391,000 |
9,025,000 |
| |
|
|
|
| Current liabilities |
1,244,000 |
1,100,000 |
1,097,000 |
| Shareholders' equity |
9,072,000 |
8,291,000 |
7,928,000 |
| Total Liabilities and Equity |
10,316,000 |
9,391,000 |
9,025,000 |
| |
|
|
|
| Number of shares outstanding |
71,682,000 |
71,682,000 |
71,682,000 |
DEQ - Overview
DEQ Systems Corp. (TSX VENTURE:DEQ) is customer-centric delivering solutions to the global gaming industry with best-of-breed table-game technology related products which add value and increase client revenue. DEQ provides table-game-bonusing technology, table games, baccarat results tracking, and jackpot connectivity solutions to more than 300 casinos in 30 countries. DEQ also has an extensive patent portfolio of more than 20 patents recognized in 50 countries. For further information, please visit www.deq.com
TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.
Forward-looking statements contained in this Press Release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.