|By Marketwired .||
|August 15, 2013 04:30 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 08/15/13 -- "For the fourth consecutive year, Zedi (TSX VENTURE:ZED) experienced a strong Q2 with revenues coming in at $26.0 million. Gross margin performance was also strong this quarter with a 4% increase in dollars and a 7% increase in margin rate over 2012. These results demonstrate our ability to continue to grow revenues and deliver profitability without contribution from unusual events. One particular area of pride for us is that we were able to deliver uninterrupted call center service to our customers throughout the flooding in Southern Alberta - a testament to the dedication of our people and the robustness and reliability of our systems," says Matthew Heffernan, President and CEO of Zedi. The Q2 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.
Highlights of the Q2 2013 results include:
-- Revenues of $25,974,000 a 2% decrease from Q2 2012 -- Gross Margin increased to 42.4% from 39.8% in Q2 2012 -- EBITDA(1) was $3,003,000, a decrease of $233,000, while profit was steady at $648,000 compared to $642,000 in Q2 2012 -- Prior to working capital changes, Zedi's cash flow from operating activities was $3,355,000, a decrease of 4% from Q2 2012. -- Recurring Revenue(1) made up 63% of total revenue in the period and represented 201% of operations expenses and 184% of total cash expenditures. -- Zedi's balance sheet remains strong, with working capital of $16,847,000 at the end of Q2 2013.
Zedi Inc. (TSX VENTURE:ZED) helps the world's oil and gas producers be more productive, more profitable, and more sustainable through technology backed by expert consultation and services. Our 60 years of continuous operations in North America and recognition as one of the industry's best workplaces, sets us apart in the production operations landscape. With our unique combination of award-winning automation, data management, and field and professional services, we offer solutions to our customers' challenges and help them realize their production potential.
(1) EBITDA and recurring revenue are non-IFRS measures. EBITDA is earnings before interest, taxes, depreciation and amortization and is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. Recurring revenue is determined by the Company and compared to both operations and total cash expenditures as significant indicators of performance and sustainability. See section 9 of the Management Discussion and Analysis for further detail on both of these metrics.
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.
Cautionary Statement Regarding Forward-Looking Information
Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's financial performance, cash flow, growth expectations, diversification and acquisition activity, strategies, assumptions regarding potential customer and market activities, recurring revenue metrics and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.