Welcome!

News Feed Item

Quorum Releases Q3 Fiscal Year 2012 Results

Quorum produces solid Operational and Financial Results

CALGARY, ALBERTA -- (Marketwire) -- 11/20/12 -- Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Company") today released its Third Quarter (Q3) Fiscal Year (FY) 2012 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 supplies its DMS to Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised and independent dealership customers.

Maury Marks, Quorum's President and CEO made the following remarks about the Company's Q3 FY2012 results:

Over the last two years, Quorum has become an "all makes" organization, with a continued emphasis on GM dealerships. Quorum supplies our product to GM, Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership as well as independent dealership customers.

As the Company has grown in the market, we have also enhanced our operational excellence by focusing on measurable improvements. Some of our key Q3 FY2012 milestones are as follows:


--  Customer Base - we attained 267 installed active dealership rooftops at
    the end of Q3 FY2012. Although we continue to grow, one of our key goals
    is to increase our sales and implementation rate. We are working on
    multiple initiatives; for example, in Q3 FY2012 we hired an additional
    salesperson and we also initiated activities focused on increasing the
    number of qualified sales leads per salesperson. 
--  Product and Product Utilization - during the quarter we piloted V4.7.5
    in six dealerships. The version has seven new major features and
    multiple small enhancements. In 2012, one of the Company's key goals is
    to increase dealerships' utilization of XSellerator. We are working on
    multiple initiatives to help increase utilization; for example, we
    recently launched eQUIP (which is a web training subscription service
    for our customers), we planned our 1st annual customer conference which
    will take place Nov 27th and 28th and engaged our support desk to have
    them proactively show dealerships new features during support calls.  
--  Customer Metrics - our dealership Customer Satisfaction ("CSI") score
    results in Q3 FY2012 were as follows: 
    --  CSI semi annual survey - 85% of end users reported "satisfied" or
        "very satisfied" and 70% of dealer principals reported "satisfied"
        or "very satisfied". Note that if "somewhat satisfied" is included
        in our results, the numbers would be 94% of end users and 85% of
        dealer principals. 
    --  CSI monthly support surveys - over 95% of our end users reported
        "very satisfied" with the service they received from our support
        center.
--  Financing - during the quarter we signed a $500K interest-free, five
    year, unsecured government loan with the Atlantic Canada Opportunities
    Agency (ACOA). The financing will be received as Quorum incurs specific
    expenditures made from Q3 FY2012 to Q2 FY2013. Additionally, we signed a
    $50K grant with ACOA for specific expenditures from Q4 FY2012 to Q3
    FY2013.

Key financial results summary:


--  Sales increased by 2% to $1,907K in Q3 FY2012 from $1,874K in Q3 FY2011,
    and margin after direct costs decreased to $1,031K in Q3 FY2012, as
    compared to $1,105K in Q3 FY2011, a 7% decrease. The increase in sales
    is due to: 
    --  An increase of $41K in net new revenue which was a result of
        completing four installations in Q3 FY2012 as compared to three
        dealership installations in Q3 FY2011.  
    --  An increase of $115K in recurring support revenue as a result from
        having 267 active dealership rooftops at the end of Q3 FY2012 versus
        250 at the end of Q3 FY2011. 
    --  A decrease in integration revenue of $152K due to a reduced number
        of GM integration projects.  
    --  An increase of $29K in transition revenue.
        The decrease in margin after direct costs is largely due to an
        increase in low margin net new and transition revenue and a decrease
        in higher margin integration revenue. 

--  Earnings before interest, taxes, depreciation and amortization
    ("EBITDA") decreased to $239K in Q3 FY2012 from $372K in Q3 FY2011.
    Income before taxes decreased to $81K in Q3 FY2012 from $200K in Q3
    FY2011. The decreases in both EBITDA and income before taxes are largely
    due to: 
    --  $74K decrease in margin after direct costs in Q3 FY2012 compared to
        Q3 FY2011 as explained above; and 
    --  an increase in sales and marketing staffing levels which increased
        Salaries and Benefits costs by $61K in Q3 FY2012 versus Q3 FY2011.
--  Cash flows from operating activities were $157K in Q3 FY2012 compared to
    $163K in Q3 FY2011.  
--  Net working capital at September 30, 2012 was $968K, with a current
    ratio of 2.26, compared to $1,065K at December 31, 2011, with a current
    ratio of 2.43. The decrease in working capital is primarily due to a
    decrease in accounts receivable from having less GM integration projects
    at the end of Q3 FY2012 versus Q4 FY2011 and the expiration of the
    Newfoundland and Labrador Government wage subsidy payment as of March
    31, 2012.

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 Q3 2012 consolidated financial statements and notes thereto as at and for the period ended September 30, 2012 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


                               Nine          Nine                           
                             Months        Months                           
                              Ended         Ended     Q3 Ended      Q3 Ended
                          Sept. 30,     Sept. 30,    Sept. 30,     Sept. 30,
                               2012          2011         2012          2011
----------------------------------------------------------------------------
Gross revenue            $5,580,724    $5,616,280   $1,907,406    $1,874,497
                                                                            
Direct Costs              2,556,320     2,387,713      876,660       769,301
                                                                            
Margin after direct                                                         
 costs                    3,024,404     3,228,567    1,030,746     1,105,196
                                                                            
Earnings before                                                             
 interest, taxes and                                                        
 amortization (EBITDA)      591,133       933,387      238,591       372,122
                                                                            
Income (loss) before                                                        
 deferred income tax        108,114       416,877       80,523       200,064
                                                                            
Net income (loss)           (98,458)      287,241       34,107       224,327
                                                                            
Comprehensive income                                                        
 (loss)                    (175,007)      404,032      (40,790)      411,338
                                                                            
Basic net income (loss)                                                     
 per share                $ (0.0025)     $ 0.0073     $ 0.0009      $ 0.0057
Fully diluted net                                                           
 income (loss) per                                                          
 share                    $ (0.0025)     $ 0.0073     $ 0.0009      $ 0.0057
                                                                            
Weighted average number                                                     
 of common shares                                                           
Basic                    39,298,438    39,298,438   39,298,438    39,298,438
Diluted                  39,298,438    39,298,438   39,298,438    39,298,438
                                                                            
XSellerator                                                                 
 installations - in the                                                     
 period                          16            15            4             3
XSellerator active                                                          
 dealership rooftops            267           250          267           250
----------------------------------------------------------------------------

                            Q2 Ended      Q2 Ended    Q1 Ended     Q1 Ended 
                            June 30,      June 30,   March 31,    March 31, 
                                2012          2011        2012         2011 
----------------------------------------------------------------------------
Gross revenue             $1,831,132    $1,829,515  $1,842,186   $1,912,268 
                                                                            
Direct Costs                 850,670       770,837     828,990      847,575 
                                                                            
Margin after direct                                                         
 costs                       980,462     1,058,678   1,013,196    1,064,693 
                                                                            
Earnings before                                                             
 interest, taxes and                                                        
 amortization (EBITDA)       226,086       238,508     126,456      322,757 
                                                                            
Income (loss) before                                                        
 deferred income tax          65,027        62,603     (37,436)     154,210 
                                                                            
Net income (loss)            (80,311)      110,638     (52,254)     (47,724)
                                                                            
Comprehensive income                                                        
 (loss)                      (41,613)       92,871     (92,604)    (100,177)
                                                                            
Basic net income (loss)                                                     
 per share                 $ (0.0020)     $ 0.0028   $ (0.0013)   $ (0.0012)
Fully diluted net                                                           
 income (loss) per                                                          
 share                     $ (0.0020)     $ 0.0028   $ (0.0013)   $ (0.0012)
                                                                            
Weighted average number                                                     
 of common shares                                                           
Basic                     39,298,438    39,298,438  39,298,438   39,298,438 
Diluted                   39,298,438    39,684,319  39,298,438   39,684,319 
                                                                            
XSellerator                                                                 
 installations - in the                                                     
 period                            6             6           6            6 
XSellerator active                                                          
 dealership rooftops             263           249         259          245 
----------------------------------------------------------------------------

About Quorum

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.

Forward-Looking Information

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 period ended September 30, 2012. 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...