TORONTO, March 28, 2018 /CNW/ - Posera Ltd. (TSX : PAY)
("Posera" or the "Company"), a leading provider of software and payment solutions for the hospitality industry, today announced
its financial results for the three-months and year-ended December 31 st, 2017.
For the year-ended December 31, 2017, Posera recognized $10,674,447 in revenue, an increase of $1,152,314 or 12% when compared to
$9,522,133 for the year-ended December 31, 2016. For the three-months
ended December 31, 2017, Posera recognized $3,327,865 in revenue an
increase of $1,468,038 (79%) from $1,859,827 for the three-months
ended December 31, 2016 and an increase of $1,069,699 (47%) from
$2,258,166 for the three-months ended September 30, 2017.
During the year of 2017 Posera achieved several noteworthy milestones including: the divestment of its FingerPrints business,
the launch of its KDS ("Kitchen Display System") solution as a separate business, the growth of Maitre'D sales in the hotel
industry, and the completion of certification with several major processors of its SecureTablePay product. "2017 was a very
positive and eventful year for Posera", said Dan Poirier, CEO of Posera. "We continued to
rightsize and streamline the business, while at the same time growing our sales and installed base for Maitre'D, and introducing
new products to the industry in KDS and SecureTablePay. We believe the company is well-positioned for the market, and look
forward to growing a strengthened Company in 2018."
In September 2017, Posera completed an asset sale of its FingerPrints point-of-sale (POS)
business, to SICOM Systems, Inc., for $12.2M in cash consideration, which after post-closing
adjustments resulted in a final gain on the disposal of $10,912,935. This divestment improved
Posera's balance sheet, was a catalyst on the road to profitability, and allowed Posera to strategically focus on its three core
products: Maitre'D (POS software), KDS (kitchen display system), and SecureTablePay (pay-at-the-table solution).
During the third quarter of 2017, Posera also announced the launch of its KDS solution as a standalone offering from the
Maitre'D POS platform for integration with third-party point-of-sale and restaurant management solutions. Posera is pleased to
report that it has achieved significant traction with the strategy to decouple the KDS product from Matire'D with a significant
order from an American customer with installations scheduled into fiscal 2018, and during the three-months ended December 31, 2017, the Company sold 1,656 KDS units, representing an increase of 1,579 units compared to the
three months-ended December 31, 2016 and an increase of 1,432 units compared to the three
months-ended September 30, 2017.
The Maitre'D POS solution continued to excel in non-traditional-restaurant hospitality sectors such as hotels, casinos, and
assisted care living. Specifically, Maitre'D sales in the European market grew approximately 45% year-over-year for fiscal 2017.
To fuel this growth, Posera completed certifications with three leading property management systems deployed by major hotel
brands globally. Combined with the recently announced Shift4 certification, Posera is confident that it can replicate the
European success in North America as well in 2018.
Posera completed certification of SecureTablePay with three of the largest US processors, Vantiv, Heartland and First
Data, and continues to work towards certification with several other leading processors. After completing these
certifications, Posera commenced pilots with all three of the above leading processors at locations across the United States, and will launch SecureTablePay during the 2018 calendar year.
During the year-ended December 31, 2017, the Company recorded a $10,912,935 gain on the divestment of FingerPrints and other minor assets, and a loss on discontinued
operations of $1,881,926. As a result, net income for the year-ended December 31, 2017 was $6,179,568, an improvement of $9,860,516 from a loss of $3,680,948 for the year-ended December 31, 2016. Net loss from continuing operations for the year-ended December 31,
2017 was a loss of $2,851,441, an improvement of $2,234,129
compared to the loss of $5,085,570 for the year-ended December 31,
2016.
Posera experienced a normalized EBITDA(1,2) loss adjusted for discontinued operations for the year-ended
December 31, 2017 of $1,354,734, representing a $294,458 (18%) improvement from a loss of $1,649,192 for the year-ended
December 31, 2016.
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(1)
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EBITDA adjusted for discontinued operations: Posera's
management defines EBITDA as Net Income before interest expense, interest income, income taxes (excluding certain
investment tax credits and other government assistance), amortization of capital and intangible assets, realized and
unrealized exchange gain or loss, impairments and gains or losses on held for trading financial instruments, gains or
losses from discontinued operations and other gains or losses on disposition of assets or extinguishment of
liabilities.
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(2)
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Normalized EBITDA adjusted for discontinued
operations: Posera's management defines Normalized EBITDA adjusted for discontinued operations as EBITDA
adjusted for discontinued operations above less certain one-time non-recurring expenditures, and non-cash stock-based
compensation expense.
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Conference Call
The Company will hold a conference call at 2:00 PM Eastern Standard Time on Tuesday, April
3rd, 2018, to discuss the financial results for the three-months and year-ended December
31 st, 2017. The call will be hosted by Loudon Owen, Chairman;
Dan Poirier, Chief Executive Officer; and Kevin Mills, Chief
Financial Officer. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Tuesday, April 3 rd, 2018
Time: 2:00 PM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free - North America (+1) 888-231-8191
Conference ID: 5985223
An archive of the conference call will be available by visiting the Company's website at www.posera.com/investor-relations. Please connect at least 10
minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
Quarterly Highlights
- Total revenue(1) was $3,327,865 for the three-months ended December 31, 2017, an increase of $1,468,038 (79%) from $1,859,827 for the three-months ended December 31, 2016 and an increase of
$1,069,699 (47%) from $2,258,166 for the three-months ended
September 30, 2017;
- Recurring revenues(1) adjusted for discontinued operations for the three-months ended December 31, 2017 were $687,536, was relatively flat compared to recurring
revenues of $676,396 for the three-months ended December 31, 2016,
and relatively unchanged from recurring revenues of $699,120 for the three-months ended
September 30, 2017; and
- Normalized EBITDA(2) adjusted for discontinued operations profit (loss) for the three-months ended December 31, 2017 was a loss of $349,881, which was an improvement compared to
a loss of $753,671 for the three-months ended December 31, 2016,
and an improvement compared to the loss of $356,839 for the three-months ended September 30, 2017.
Annual Highlights
- Total revenue(1) was $10,674,447 for the year-ended December 31, 2017, an increase of $1,152,314 (12%) from $9,522,133 for the year-ended December 31, 2016;
- Recurring revenues(1) adjusted for discontinued operations for the year-ended December
31, 2017 were $2,706,141, a slight decrease of $192,107 (7%)
from recurring revenues of $2,898,248 for the year-ended December 31,
2016; and
- Normalized EBITDA(2) adjusted for discontinued operations for the year-ended December 31,
2017 was a loss of $1,354,734, a decrease in the loss of $294,458 (18%) from a loss of $1,649,192 for the year- ended December 31, 2016.
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(1) Amount presented applies the retrospective presentation for
discontinued operations for the Zomaron and FingerPrints transactions as discussed in this MD&A on Page #3-5 of the
Company's Management Discussion and Analysis for the year and three months ended December 31, 2017.
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(2) Presentation of these amounts include the results from discontinued
operations as discussed on Page #3-5 of the Company's Management Discussion and Analysis for the year and three-months
ended December 31, 2017.
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About Posera
Posera has been a leading provider of hospitality technology for more than 30 years. It manages merchant transactions with
consumers and facilitates all aspects of the payment transaction.
Posera's full service solutions include: SecureTablePay®, an EMV compliant pay-at-the-table application;
Maitre'D®, a point of sale system which offers a robust and comprehensive solution including hardware integration
services, merchant staff training, system installation services, post-sale software and hardware customer support; and KDS, a
Kitchen Display System that is now available as a standalone product. Posera's solutions are deployed globally across the full
spectrum of restaurants, from large chains and independent table service restaurants to international quick service chains and
its products have been translated into eight languages.
Posera Ltd.'s shares are traded on the Toronto Stock Exchange under the symbol "PAY".
More information about Posera can be found on the Company's website at www.posera.com or under the Company's profile on SEDAR at www.sedar.com.
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'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 to be filed on March 28
th 2018 with the regulatory authorities. Posera 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, unless required
by law.
SOURCE Posera Ltd.
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