Mr. Michael Robb reports
AIRIQ ANNOUNCES MARCH 31, 2018 YEAR END RESULTS REPORTS DOUBLE DIGIT INCREASE IN RECURRING REVENUE, STRONG CASH BALANCE
AirIQ Inc. has released its financial results for the year ended March 31, 2018, reporting increased recurring revenue and a strong cash balance compared with the previous year.
"We are pleased to report that recurring revenue increased year over year by nearly 14 per cent," said Michael Robb, president and chief executive officer of AirIQ. "We believe that the increase in recurring revenues is a strong indicator of our success. In addition, our cash balance was approximately $527,000 as at March 31, 2018, after acquiring the assets of Connected Telematics. The company's cash will be used to invest in additional sales and marketing initiatives, such as our recently announced reseller channel program, and for potential future acquisitions to fuel further revenue growth," continued Mr. Robb.
"The acquisition of the Connected Telematics assets has increased our monthly recurring revenue, the number of devices in circulation and expanded our market opportunities in North America, and has continued to perform to our expectations," stated Mr. Robb. "The company reported an adjusted net income of approximately $262,000 for the year ended March 31, 2018, after a one-time impairment charge of $102,000 required under [international financial reporting standards] regulations," continued Mr. Robb.
Unless otherwise noted herein, and except for share and per-share amounts, all references to dollar amounts from this point forward are in thousands of Canadian dollars.
Highlights of the quarter and the year are as follows.
Fourth quarter highlights:
Recurring revenue increased by 10.6 per cent to $616 during the current quarter from $557 in the quarter ending Dec. 31, 2017, and by 22.5 per cent from $503 for the same period in the prior year. This represents the third consecutive quarter of increases in recurring revenue.
- Gross margin of 59.0 per cent decreased 2.2 per cent compared with the quarter ending Dec. 31, 2017, but was up 2.0 per cent compared with the same period the prior year.
- EBITDAS (defined in the table on the company's financial highlights) of $152 was up $7 or 4.8 per cent compared with $145 for the quarter ending Dec. 31, 2017, and the same period in the prior year.
- Net loss for the quarter of $13) compared with net income of $82 in the quarter ending Dec. 31, 2017, and net income of $89 for the same period in the prior year, but this was after the one-time non-cash effect of a $102 capital impairment charge during the current quarter. After adjusting for this one-time charge, net income would have been $89, unchanged from the quarter ending March 31, 2017, and representing an increase of 8.5 per cent when compared with the quarter ending Dec. 31, 2017.
Recurring revenue increased by 13.7 per cent to $2,229 during the year ending March 3, 2018, from $1,960 for the same period in the prior year. Recurring revenue represented 68.0 per cent of total revenue compared with 60.3 per cent in the prior year.
- Gross margin of 60.5 per cent increased 5.6 per cent compared with 54.9 per cent the same period the prior year.
- EBITDAS of $503 decreased $71 or 12.4 per cent compared with $574 during the same period in the prior year.
- Net income of $160 compared with $355 for the same period in the prior year, but this was after the one-time effect of a $102 capital impairment charge during the current quarter and a $25 increase in depreciation and amortization.
- Net cash flow was strong, with $395 of cash generated during the year ending March 31, 2018, compared with $24 during the same period in the prior year.
- Working capital improved by 99 per cent to $357 as at March 31, 2018, from $179 as at March 31, 2017. (Working capital has been calculated by netting current assets, excluding current costs of deferred revenues, and current liabilities, excluding deferred revenue that are non-cash items.)
Three months ended Three months ended 12 months ended 12 months ended
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Recurring revenue $616 $503 $2,229 $1,960
Hardware and other revenue $257 $302 $1,050 $1,293
Total revenue $873 $805 $3,279 $3,253
Gross profit $515 $455 $1,984 $1,786
Gross profit percentage 59% 57% 60.5% 54.9%
Expenses (1) $363 $310 $1,481 $1,212
EBITDAS (2) $152 $145 $503 $574
Other expenses (3) $63 $56 $241 $219
Impairment of long-lived asset $102 - $102 -
Net income (loss) and comprehensive
income (loss) $(13) $89 $160 $355
Net income per share, basic and diluted $0.01 $0.00 $0.01 $0.01
(1) Excludes share-based compensation.
(2) EBITDAS represents earnings before interest and non-cash items: depreciation and amortization, impairment
of long-lived assets, and share-based compensation.
(3) Includes non-cash notional charges such as interest, depreciation and amortization, and
share-based compensation expense.
The company is focusing its efforts and resources on revenue growth and profitability by continuing to offer leading-edge technology solutions for existing and new customers. It continues to focus on recurring revenue, gross profits and improving cash flows to build a sustainable business.
The company's audited consolidated financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings Inc., AirIQ U.S. Inc. and AirIQ LLC. All intercompany balances and transactions have been eliminated on consolidation.
The company's audited consolidated financial statements as at and for the years ended March 31, 2018, and March 31, 2017, including notes thereto, and the management's discussion and analysis (MD&A) for the same periods were filed with the Canadian securities regulatory authorities on July 11, 2018, and will be available on the company's website and on SEDAR.
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ is an intuitive Web-based platform that provides fleet operators and vehicle owners with a suite of asset management solutions to reduce cost, improve efficiency, and monitor, manage and protect their assets. Services are available on-line or via a mobile app, and include: instant vehicle locating; boundary notification; automated inventory reports; maintenance reminders; security alerts; and vehicle disabling and unauthorized movement alerts.
We seek Safe Harbor.
© 2019 Canjex Publishing Ltd. All rights reserved.