CALGARY, Alberta, Nov. 28, 2019 (GLOBE NEWSWIRE) -- Trakopolis IoT Corp. ("Trakopolis" or the "Company") (TSXV: TRAK) reports its financial and operating results for the third quarter ended September 30, 2019.

"During the third quarter of 2019, operational adjustments resulted in an improvement of 76% in EBITDA compared with the third quarter of 2018,” said Richard Clarke, President and CEO of Trakopolis. “We have been very pleased with the success and speed of the operating adjustments and the improvements made to EBITDA and net loss.  Since the beginning of 2019, we have concentrated our efforts on utilizing our product/solution positioning, established customers and sales channels to drive improvements in top and bottom-line operating results. We look forward to working with clients to deliver, comprehensive, end-to-end industrial internet of things solutions."

Third quarter financial highlights include:

  • EBITDA of negative $185 thousand for the quarter which is a 76% improvement from negative $759 thousand in Q3 of the prior year. For the nine months ended September 30, 2019, EBITDA of negative $783 thousand million was a 68% improvement compared with negative $2.45 million in the same period of the prior year.
     
  • The Enterprise customer segment represents 55% of monthly subscription revenue up from 49% in the third quarter of 2018.
     
  • Operating expenses declined by $0.6 million or 35% from $1.7 million in the third quarter of 2018 to $1.1 million this year.
     
  • Subscription revenue of $1.22 million for the quarter ended September 30, 2019 was a 4% increase from the same quarter in the prior year.
     
  • During the quarter, subscribers increased from the second quarter by 729 (4%) to 18,277.             

Trakopolis’ third quarter financial statements and MD&A have been posted to the Company’s website and can be accessed at http://trakopoliscorp.com/investors/. The MD&A and Financial Statements have also been filed with SEDAR and will be accessible at www.sedar.com.

On November 11, 2019 the Company elected to proactively and voluntarily file for a Notice of Intention to make a proposal pursuant to provisions of the Bankruptcy and Insolvency Act. The filing of the Notice of Intention had the effect of imposing an automatic 30-day stay of proceedings that will protect the Company and its assets from the claims of creditors while the Company pursues restructuring efforts. This 30-day period may be extended with the authorization of the Alberta Court of Queen's Bench and the Company intends to seek such extension.

About Trakopolis

Trakopolis is a Software as a Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers. The Company's asset management platform works across a variety of networks and devices. Trakopolis has a diversified revenue stream from many verticals including oil and gas, forestry, transportation, construction, rentals, urban services, mining, government and others.

For further information, please contact:

Richard Clarke, Chief Executive Officer
Trakopolis IoT Corp.
Telephone: (403) 450-7854
Email: rclarke@trakopolis.com

Forward-Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding: the ability of the Company to achieve material sales growth. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability of the Company to retain or attract qualified personnel to successfully implement products and services following the sales process; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.  Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Measures

This news release contains references to certain financial measures that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other entities. These non-GAAP financial performance measures should be viewed as a supplement to, and not a substitute for, the Company’s results of operations reported under IFRS. These financial measures are identified and defined below:

A “Subscriber” is defined as a customer's individual asset which is monitored by a telematics device. A Subscriber is an important metric for our investors because it provides an indication of our ability to generate Recurring Revenue from providing recurring service to our customers. 

EBITDA refers to earnings before interest, tax, depreciation and amortization (“EBITDA”).

Please refer to the Company’s September 30, 2019 MD&A dated November 28, 2019 for additional information regarding these non-GAAP measures.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.