OTTAWA, May 21, 2020 /CNW/ - Intouch Insight Ltd., ("Intouch or the Company") (TSXV: INX) (OTCQB: INXSF) today announced its operating and financial results for the quarter ended March 31, 2020.
Revenue from Q1 2020 was $4,754,107, which was 4% higher than revenue of $4,588,211 in Q1 2019. Operating earnings increased to $156,329 in Q1 2020 compared to $32,712 in Q1 2019. The quarter's net loss was $201,348 compared to a loss of $20,696 in Q1 2019 due to impairments recorded as a result of the COVID-19 pandemic. Company-defined adjusted EBITDA was up 63% - $415,702 for Q1 2020, compared to $255,298 in Q1 2019. Gross Margin declined to 50.4% in Q1 2020 from 52.8% the prior year.
"I am very pleased that the business was able to show growth in both revenues, operating income and EBITDA despite the COVID-19 impacts which began in March. As evidenced by these results, we were positioned for a solid quarter before the global pandemic took the wind out of our sails. I am also proud of the way the Intouch team has dealt with the uncertainty thrust upon them through the end of the quarter, including the speed at which the business was able to reduce operating expenses. Mitigating the impacts of COVID-19 and ensuring the business is poised to rebuild rapidly will continue to be the top priorities for the foreseeable future. Of course, part of rebuilding is ensuring that each product we sell is well-positioned in the COVID-19 world," said Cameron Watt, President and Chief Executive Officer.
"As we start to see sectors of the economy reopen, it is clear that positive customer experience is going to be created not only by courteous and smiling employees but by the execution against new and evolving requirements regarding the health and safety of both employees and customers. Our software and services can help companies not only implement required changes but also measure the success of their execution against them and how they impact their customers and brand perception. Therefore, we are confident that the strength of our technology and our long history of customer stability will serve us well as we work towards a full economic recovery. We continue to take every step necessary to ensure overall corporate stability while leveraging our strengths to remain in a leadership position when current crisis abates," said Watt.
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Consolidated Statements of Operations
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Q1 2020
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Q1 2019
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Revenue
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$ 4,754,107
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$ 4,588,211
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Cost of services
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2,356,589
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2,167,801
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Gross profit
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2,397,518
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2,420,410
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Total operating expenses
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2,241,189
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2,387,698
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Income (loss) from operating activities
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156,329
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32,712
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Other earnings (expense)
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(357,677)
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(53,408)
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Net loss
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$ (201,348)
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$ (20,696)
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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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Intouch Insight Ltd.
View original content: http://www.newswire.ca/en/releases/archive/May2020/21/c5526.html
Cathy Smith, Chief Financial Officer, csmith@intouchinsight.com, 613-270-7916Copyright CNW Group 2020