CALGARY, Alberta, Aug. 29, 2018 (GLOBE NEWSWIRE) -- Quorum Information Technologies Inc. (TSX-V: QIS), a leading provider of dealership and customer management software and value-added services to the automotive industry, released its 2018 second quarter results today.
Maury Marks, Quorum’s President and CEO provided the following comments on the Company’s Q2 FY2018 operational and financial results:
Revenue Type | Q2 2018 | Q2 2017 | Growth |
Support revenue | $ 2,810,651 | $2,523,645 | 11% |
Add-on revenue | 299,934 | 305,052 | -2% |
New installations revenue | 287,422 | 283,332 | 1% |
Core revenue subtotal | 3,398,007 | 3,112,029 | 9% |
Transitions revenue | 172,722 | 75,673 | 128% |
Gross Revenue | $ 3,570,729 | $3,187,702 | 12% |
Dealership Success Scorecard2
- Communicator – Dealerships utilizing Communicator: 265 |
- Messages in Q2 FY2018: 4,813,402 |
- Year over year message growth: 74% |
- M3 (VIP only) – Dealerships utilizing VIP: 165 |
- Total Q2 FY2018 incremental Customer Pay revenue: $33,459,069 |
- Year over year revenue growth: 25% |
- Sales CRM – Dealerships trained: 130 |
- Average Q2 FY2018 utilization of Sales CRM 70% |
- Total # of dealerships that have moved away from 3rd party CRM systems: 23 |
Other key financial results highlights for Q2 FY2018 are as follows:
Conclusion
Quorum has generated nineteen consecutive quarters of revenue growth (over the prior year quarters) and we continue to increase our staffing levels in anticipation of future growth. Our strategy to focus on product innovations, improving product utilization and superior levels of customer service has increased the market demand for our product and services. Our fundamentals behind future revenue growth are still very strong and are as follows:
Quorum has filed its Q2 2018 consolidated financial statements and notes thereto as at and for the period ended June 30, 2018 and accompanying management’s discussion and analysis in accordance with National Instrument 51-102 - Continuous Disclosure Obligations adopted by the Canadian securities regulatory authorities. Additional information about Quorum will be available on Quorum’s SEDAR profile at www.sedar.com and Quorum’s website at www.QuorumDMS.com.
Financial Highlights
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Q2 Ended June 30, 2018 | Q2 Ended June 30, 2017 | Q1 Ended March 31, 2018 | Q1 Ended March 31, 2017 | ||||||||||
Gross revenue | $ | 7,092,980 | $ | 6,459,689 | $ | 3,570,729 | $ | 3,187,702 | $ | 3,522,251 | $ | 3,271,987 | |||
Direct costs | 3,419,058 | 3,073,402 | 1,736,545 | 1,505,301 | 1,682,513 | 1,568,101 | |||||||||
Gross margin | 3,673,922 | 3,386,287 | 1,834,184 | 1,682,401 | 1,839,738 | 1,703,886 | |||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 750,374 | 923,116 | 562,644 | 553,847 | 187,730 | 369,269 | |||||||||
Income (loss) before deferred income tax expense | (351,631 | ) | 335,622 | 46,258 | 258,829 | (397,889 | ) | 76,793 | |||||||
Net income (loss) | (461,314 | ) | 308,853 | (215,789 | ) | 266,212 | (245,525 | ) | 42,641 | ||||||
Comprehensive income (loss) | (378,364 | ) | 249,868 | (189,283 | ) | 217,681 | (189,081 | ) | 32,187 | ||||||
Basic income (loss) per share | $ | (0.0088 | ) | $ | 0.0059 | $ | (0.0041 | ) | $ | 0.0051 | $ | (0.0047 | ) | $ | 0.0008 |
Fully diluted income (loss) per share | $ | (0.0088 | ) | $ | 0.0059 | $ | (0.0041 | ) | $ | 0.0051 | $ | (0.0047 | ) | $ | 0.0008 |
Weighted average number of common shares | |||||||||||||||
Basic | 52,698,581 | 52,045,594 | 52,698,581 | 52,045,594 | 52,627,690 | 52,045,594 | |||||||||
Diluted | 52,698,581 | 52,045,594 | 52,698,581 | 52,045,594 | 52,627,690 | 52,045,594 | |||||||||
A conference call and a live audio webcast of the call has been scheduled for Thursday, August 30, 2018, beginning at 11:00 MT (13:00 ET).
Anyone wishing to participate in the call is asked to dial-in using the following numbers and ask for the Quorum Information Technologies Inc. Second Quarter 2018 Results Conference Call.
Local: 1 (403) 451-9838
Toll-Free North America: 1 (888) 231-8191
Conference ID#: 8179007
The live audio webcast will be available by visiting the Company's website at http://quorumdms.com/quorum-presentations-events.htm Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
About Quorum
Quorum is a North American company focused on developing, marketing, implementing and supporting its automotive dealership and customer management system, XSellerator. Quorum offers the system to franchised, independent and some non-automotive dealerships in Canada and the United States. XSellerator automates, integrates and streamlines every process across departments in a dealership. The system includes tools designed to maximize revenue opportunities for dealerships such as Customer Relationship Management and service inspection and quoting processes. Quorum is a Microsoft partner and XSellerator is developed with modern mobile-enabled technology. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS and in 2016 was selected to the TSX Venture 50®, an annual ranking of the strongest performing companies on the TSX Venture Exchange. For additional information please go to www.QuorumDMS.com.
Forward-Looking Information
This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to results of operations, plans and objectives, projected costs and business strategy. Quorum believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the risks identified in Quorum's Management's Discussion and Analysis for the period ended June 30, 2018. Any forward-looking information is made as of the date hereof and, except as required by law, Quorum assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.
1 Support revenue includes deferred revenue adjustments required due to GM DTAP customer support billings that are invoiced in advance. Support revenue for March 2018 included $22,507 in support revenue adjustments. Q1 FY2018 support revenue included deferred support revenue adjustments of $2,137. The March 2018 run rate, not including deferred revenue adjustments, was $11,116,836, previously reported as $11,386,920 based on March support revenue of $926,403, previously reported as $948,910.
2 The numbers and dollar figures included in the Dealership Success Scorecard are based on dealership results.
Quorum Contact: Maury Marks
403-777-0036
MarksM@QuorumDMS.com