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Last updated on April 19, 2014 at 9:20 EDT

In-Touch Survey Systems Ltd. announces FY 2012 results: a 20% increase in revenues

April 4, 2013

OTTAWA, April 4, 2013 /CNW/ - In-Touch Survey Systems Ltd. (“In-Touch”) (TSXV: INX) announces that
revenues increased 20% to $10,719,792 in FY 2012 compared to $8,930,735
in FY 2011. Net earnings for 2012 decreased 7% to $1,032,218 compared
to $1,114,904 in 2011, and net earnings per share for 2012 were $0.07
compared to $0.08 for 2011.  Earnings from operating activities were
$761,362 in 2012 compared to $1,059,741 in 2011. The Company-defined
adjusted EBITDA, as described in the Company’s Management Discussion
and Analysis was $1,204,000 in FY 2012, compared to $1,387,000 in FY
2011.

“The Company had a successful year in terms of sales growth and new
product development. Net income and EBITDA were down because of
increased investment in product development and marketing and the loss
of two large customers in Q4 due to cost cutting measures in these
firms. One or two acquisitions were a key part of the 2012 growth
strategy and while no deals were completed to impact 2012 we have just
announced on April 2, 2013 the acquisition of a division of Navex
Global “, said Michael Gaffney, Chief Executive Officer.

Gross margins decreased to 49% in 2012 compared to 51% in 2011 due to
the assumed overheads associated with the Service Intelligence business
combination, as the final integration of SI took longer than expected.
The company expects gross margins to increase and return to historical
levels in 2013 as Service Intelligence customers have been fully
transferred onto In-Touch systems.

At the Event Technology Summit in New York in November 2012 we launched
EventMatrix (eventmatrix.com) – an enterprise platform as a service targeted at Chief Marketing
Officers, Chief Information Officers and Agencies of Record to manage
large complex mobile deployments for marketing and operations
departments. The Company has made two major sales of EventMatrix and
estimates total annual combined revenues from these sales may exceed a
million dollars.


    Consolidated Statements of                   2012              2011
    Comprehensive Earnings

    Revenue                                 $ 10,719,792      $ 8,930,735

    Cost of services                           5,510,707        4,366,655

    Gross profit                               5,209,085        4,564,080

    Total operating                            4,447,723        3,504,339
    expenses

    Earnings from operating activities           761,362        1,059,741

    Finance costs                              (112,835)         (68,555)

    Loss on extinguishment of long-term                -        (147,748)
    debt

    Change in fair value of derivative                 -        (104,128)

    Change in fair value of contingent          (16,179)         (29,610)
    payment

    Deferred tax                                 407,950          419,104
    recovery

    Current income tax                           (8,080)         (13,900)

    Net earnings and other comprehensive     $ 1,032,218      $ 1,114,904
    earnings

    Weighted average number of common         14,226,312       14,028,257
    shares - basic

 

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.

The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.

 

 

 

SOURCE In-Touch Survey Systems Ltd.


Source: PR Newswire