Cortex Business Solutions Announces Q4 and Full Year Fiscal 2018 Financial Results

Cortex Completes Strong Fiscal 2018 with Record Adjusted EBITDA⁽¹⁾ and cash flows from operations

CALGARY, Alberta, Oct. 23, 2018 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (“Cortex”) (TSXV: CBX), a North American network-as-a-service complete document management & e-invoicing solutions provider, today announces its three and twelve months ended July 31, 2018 (“Q4 F2018”) Management’s Discussion and Analysis (“MD&A”) and Consolidated Annual Financial Statements (“F/S”).  The MD&A and F/S are available at www.sedar.com.

“I believe these results are just the beginning of the momentum that we are building at Cortex.  Our team has delivered our strongest results yet in F2018 while remaining focused on helping our customers to deliver their own successful results and savings with our ever-expanding service.  With our most recent acquisition we are able to work with customers on many new levels by adding new product breadth and supply chain value.  I could not be more excited with the trajectory that Cortex is on and look forward to another year of growth and expansion” said Joel Leetzow, President and CEO.

“The strong financial results including revenue which increased organically year over year by 13% and record Adjusted EBITDA of $2.1 million for fiscal 2018 continue to show that Cortex is adding consistent value for its shareholders.” said Jason Baird, VP, Finance & CFO.

“Cortex completed a transformational fiscal year with the recent strategic acquisition of Powervision Software Inc. (“Powervision”) which is estimated to not only increases Cortex’s revenue, Adjusted EBITDA, margins and cash flows, but has also improved the solutions that Cortex can offer our customers as a network-as-a service”

Q4 F2018 and F2018 Financial Highlights

Three months ended July 31, 2018 compared to July 31, 2018

• Adjusted EBITDA⁽¹⁾  increased 136% or by $0.2 million to $0.4 million from $0.2 million
• Cash flow from operating activities increased 32% or by $0.2 million to $0.7 million from $0.5 million
• Overall revenue increased 5% or by $0.2 million to $3.1 million from $2.9 million
• Access and usage fees increased 14% or by $0.4 million to $3.0 million from $2.6 million
• Access fees increased 34% to $2.1 million from $1.6 million
• Gross profit improved 3% or by $0.1 million to $2.2 million
• Net income improved by $3.2 million to $3.1 million from a net loss of $0.1 million

Fiscal 2018 compared to Fiscal 2017

• Adjusted EBITDA⁽¹⁾  increased 282% or by $1.6 million to $2.2 million from $0.6 million
• Cash flow from operating activities increased 281% or by $1.5 million to $2.0 million from $0.5 million
• Overall revenue increased 13% or by $1.4 million to $12.5 million from $11.1 million
• Access and usage fees increased 16% or by $1.6 million to $11.6 million from $10.0 million
• Access fees increased 28% to $7.7 million from $6.0 million
• Gross profit improved 17% or by $1.3 million to $9.2 million from $7.8 million
• Net income improved by $4.7 million to $4.3 million from a net loss of $0.4 million

Cash Position

The overall cash position of Cortex improved 31% to $8.2 million at July 31, 2018, 2018 from $6.2 million at July 31, 2017 driven predominantly from an increase in net cash provided by operating activities mainly from higher access and usage fees and project management revenues.  The cash position of Cortex provided the flexibility to prudently use $4.7 million in the acquisition of Powervision in September 2018.

⁽¹⁾  Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-recurring charges and share based payments.  Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers.  This measure assists the Company in evaluating the Company’s operating performance against its expectations and against other entities. Please refer to the Company’s MD&A for the quarter and year ended July 31, 2018 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

Cortex’s management will host a conference call, followed by a question and answer period. 

The details of the conference call are as follows:

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex at 403 219-2838.

A replay of the conference call will be available after the call through October 31, 2018.

About Cortex

Cortex is a service-centric, digital transformation solutions provider focused on revolutionizing B2B document exchange. We help businesses save time and money by replacing traditional paper-based manual systems with AP and AR invoice automation. Companies on the Cortex Network are positioned for success with solutions that offer the scalability and flexibility needed to evolve with their unique business needs. Cortex specializes in the development and delivery of integrated electronic document intake and management solutions using flexible connection methods that leverage existing technologies and processes.

Cortex is currently enabling digital transformation in over 11,000 companies in the Oil & Gas, Mining, Manufacturing and Sports & Entertainment industries.  For more information, please visit www.cortex.net.

Investor Relations Contacts:

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Cortex Business Solutions Inc.
Consolidated Statements of Financial Position
(Prepared in Canadian Dollars)

Cortex Business Solutions Inc.
Consolidated Statement of Income (Loss) and Comprehensive Income (Loss)
For the years ended July 31, 2018 and 2017
(Prepared in Canadian Dollars) 

Cortex Business Solutions Inc.
Consolidated Statement of Changes in Shareholders’ Equity
(Prepared in Canadian Dollars)

Cortex Business Solutions Inc.
Consolidated Statement of Cash Flows
For the years ended July 31, 2018 and 2017
(Prepared in Canadian Dollars)