|By Marketwired .||
|February 24, 2014 04:50 PM EST||
TORONTO, ONTARIO -- (Marketwired) -- 02/24/14 -- AirIQ Inc. ("AirIQ") (TSX VENTURE: IQ), a supplier of wireless asset management services, today announced its financial results for the three months and nine months ended December 31, 2013.
"Although third quarter sales are typically lower because of the holiday season, the Company improved sales and EBITDAS over the same quarter in the prior fiscal year," said Donald Gibbs, President and Chief Executive Officer of AirIQ. "With the success of the Company's working capital financing and the EBITDAS improvement over the same quarter last year, the Company is positioned to grow and service its customers better," continued Mr. Gibbs.
The highlights of the quarter were as follows:
-- On December 17, 2013, the Company closed a $485 financing comprised of a $100 loan and a $385 private placement. -- 74% of revenue in the quarter was recurring. -- EBITDAS loss of $53 for the quarter ended December 31, 2013 improved from EBITDAS loss of $74 in the quarter ended December 31, 2012. -- Expenses (excluding stock based compensation) of $429 were down from $434 in the prior quarter. -- Revenue of $601 for the current quarter improved from $583 for the quarter ended December 31, 2012. -- Net loss of $183 included a one-time stock based compensation charge of $98 related to the Company's financing on December 17, 2013. Financial Highlights Three months Three months ended ended 31-Dec-13 31-Dec-12 ---------------------------------------------------------------------------- Total Revenue $ 601 $ 583 Gross Margin $ 376 $ 388 Gross Margin % 62.6% 66.6% Net Income (loss) $ (183) $ (109) Net Income (loss) per share, basic and diluted $ (0.01) $ (0.01) EBITDAS(i) $ (53) $ (74) ----------------------------------------------------------------------------
(i)The Company has included information concerning EBITDAS because it believes that it may be used by certain investors as one measure of the Company's financial performance. EBITDAS is not a measure of financial performance under IFRS and is not necessarily comparable to similarly titled measures used by other companies. EBITDAS should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with IFRS ) or as a measure of liquidity.
The Company continues to focus on its key strategy elements to build revenues and manage costs to achieve sustained profitability and positive cash flow and to seek opportunities to form value creating strategic partnerships.
Unless otherwise noted herein, and except share and per share amounts, all references to dollar amounts are in thousands of Canadian dollars.
The Company's consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
Revenues for the three months ended December 31, 2013, increased 3% to $601 from $583 for the three months ended December 31, 2012. Revenues for the nine months ended December 31, 2013, increased 4% to $1,813 from $1,740 for the nine months ended December 31, 2012. Approximately 74% and 73% of the total revenue for the three and nine month periods ended December 31, 2013 respectively, represents recurring revenue from the Company's airtime customers.
Overall, gross profit for the three months ended December 31, 2013, decreased by 3% to $376 and 2% to $1,160 for the nine months ended December 31, 2013 compared to $388 and $1,179 for the three months and nine months ended December 31, 2012.
Sales and marketing, research and development and general and administrative expenses totalled $529 and $1,434, respectively for the three months and nine months ended December 31, 2013 compared to $473 and $1,412, respectively for the three months and nine months ended December 31, 2012.
The Company's net loss for the three months and nine months ended December 31, 2013 was $183 and $364, respectively, as compared to a net loss of $109 and $316, respectively, for the three months and nine months ended December 31, 2012, a decline of $74 and $48, respectively.
The Company's unaudited consolidated condensed interim financial statements for the three months and nine months ended December 31, 2013, including notes thereto, and Management's Discussion and Analysis for the same period were filed with the Canadian securities regulatory authorities today and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com).
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.
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.