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Quorum Releases Fiscal Year 2011 ResultsQuorum Continues to Produce Solid Operational and Financial Results (April 24, 2012)
CALGARY, ALBERTA -- (Marketwire) -- 04/24/12 -- Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Company") today released its Fiscal Year (FY) 2011 results. Quorum delivers its dealership management system (DMS), XSellerator(TM), and related services to automotive dealerships throughout North America. The Company is both an Integrated Dealership Management System (IDMS) strategic partner with General Motors Corporation (GM) and a strategic partner with Microsoft. Quorum's XSellerator product is broadly promoted to its target dealerships throughout North America by these prominent industry partners. Quorum also supplies its product to Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership customers.
Maury Marks, Quorum's President and CEO made the following remarks about the Company's FY2011 results:
Some of our most significant measurable sales and operational results in FY2011 are as follows:
-- Customer Base - Quorum reached 254 active dealership rooftops at the end of FY2011 after installing 22 dealership rooftops during the year. Our 254 dealership rooftops encompass 8,038 active users - approximately 32 users per rooftop. -- Key customer metrics are as follows: -- Customer Satisfaction Index ("CSI") semi-annual survey in Q3 FY2011 showed that 86% of end users reported "satisfied" or "very satisfied" and 89% of dealer principals reported "satisfied" or "very satisfied". -- Our monthly Support Center CSI survey reported an average of 94% "very satisfied" with the service received from our support team. -- For our Support services, on average, we now close 75% of all support calls within 30 minutes (up from 60% in 2008, when we first started measuring this statistic) and 88% of all calls within 24 hours (up from 81% in 2008). -- Product - during FY2011 we released V4.7.1 and V4.7.2 of XSellerator to all of our dealership customers. The most extensive release was V4.7.1, which contained the largest number of software enhancements in a single release in the Company's history. In Q3 FY2011, we started the development on two ground breaking projects, which will be released in Q2 of 2012: -- "Communicator" is designed to transform how dealership staff communicate with their customers and each other. -- "Console" which is a new customizable workspace with a cadre of productivity tools to help dealerships improve customer service, increase utilization of XSellerator and track key performance indicators. -- Employees - none of the Company's accomplishments are possible without highly motivated, engaged people. Our sincere thanks to the people that drive Quorum. Every year we measure our staff engagement and we actively work towards improving our job satisfaction and engagement throughout the Company.
Financial Results highlights for FY2011 are as follows:
-- Revenues increased from $7,696K in FY2010 to $7,728K in FY2011, largely due to: -- Recurring support revenue increase of $412K as a result of having 254 active dealership rooftops as the end of FY2011 versus 240 at the end of FY2010. -- A decrease of $358K in new implementation revenue which is a result of completing 22 installations in FY2011, down from 33 installations in FY2010. -- Earnings before interest, taxes and amortization (EBITDA) was $1,307K for FY2011 compared to $1,390K in FY2010. EBITDA decreased slightly because our salary cost increased. This short term increase is largely due to the cost of duplicate salaries from relocating some key roles within the Company from one office to another. -- Income before income taxes increased to $611K for FY2011 compared with $423K in FY2010. This change is primarily due to interest expense savings of $245K from the early retirement of the Corporation's 12% secured convertible debenture in December FY2010, offset by the increased salary cost noted above. -- Net income increased to $331K for FY2011 compared with $167K in FY2010. This change is consistent with our change in Income before income taxes. -- Comprehensive income increased to $372K in FY2011 compared with $3K in FY2010 due to a foreign exchange gain in FY2011 of $40K versus a foreign exchange loss in FY2010 of $163K. -- Working capital increased to $1,064K at the end of December 2011 compared with $640K at the end of December 2010. The $424K improvement in Quorum's working capital position is due to a continued focus on producing cash flow positive results each quarter.
The Company continues to grow our customer base, improve our service offerings and customer satisfaction and lead the market in product innovation. We also continue to deliver solid financial results and improve our cash and working capital positions by producing improved positive cash flow every year. Our single biggest challenge in 2012 is to grow our sales and implementation rates to the "next level." We have already embarked on a number of initiatives that are focused on meeting this challenge.
Quorum has filed its 2011 consolidated financial statements and notes thereto as at and for the period ended December 31, 2011 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 (dollar figures in '000) Year ended Year ended December 31, 2011 December 31, 2010 ---------------------------------------------------------------------------- Gross revenue $ 7,727,502 $ 7,695,773 Direct costs 3,280,810 3,303,450 Margin after direct costs 4,446,692 4,392,323 Earnings (loss) before interest, taxes and amortization (EBITDA) 1,307,465 1,389,639 Income before deferred income tax 611,124 422,511 Net income 331,147 166,555 Comprehensive income 371,523 3,177 Basic net income per share $ 0.008 $ 0.004 Fully diluted net income per share $ 0.008 $ 0.004 Weighted average number of common shares Basic 39,298,438 39,298,438 Diluted 39,298,438 42,634,919 XSellerator installations - in the period 22 33 XSellerator active dealership rooftops 254 240 ----------------------------------------------------------------------------
Quorum is a North American company focused on developing, marketing, implementing and supporting its XSellerator product for GM, Isuzu, Chrysler, Hyundai, KIA, Nissan, Subaru, NAPA and Bumper to Bumper dealerships. XSellerator is a dealership and customer management software product that automates, integrates and streamlines every process across departments in a dealership. One of the select North American suppliers under General Motors' IDMS program, Quorum is the second largest DMS provider for GM's Canadian dealerships with 25% of the market. Quorum is a Microsoft Partner in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information please go to www.QuorumDMS.com.
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 year ended December 31, 2011. 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Quorum Information Technologies Inc
403-777-0036 ext 104
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