Welcome!

News Feed Item

Quorum Announces 2016 Results

2016 revenues increased 13% over 2015

CALGARY, ALBERTA -- (Marketwired) -- 04/20/17 -- Quorum Information Technologies Inc., (TSX VENTURE: QIS) a leading provider of dealership and customer management software and value-added services to the automotive industry, today released its 2016 fourth quarter and year end results.

Maury Marks, Quorum's President and CEO provided the following comments on the Company's 2016 year end operational and financial results:


Revenue Type                            2016            2015          Growth
----------------------------------------------------------------------------
Support revenue                   $8,808,171      $7,881,742             12%
Add-on revenue                     1,574,880       1,114,527             41%
New installations revenue          1,544,205         854,435             81%
                            ------------------------------------------------
Core revenue subtotal             11,927,256       9,850,704             21%
Transitions revenue                  251,194         893,774            -72%
Integration revenue                        0               0              0%
                            ------------------------------------------------
                            ------------------------------------------------
Gross revenue                    $12,178,450     $10,744,478             13%
                            ------------------------------------------------
                            ------------------------------------------------

--  Customer base - growth in our customer base is a key driver to revenue
    growth because it increases new installations revenue and recurring
    Software as a Service "SaaS" support revenue. In FY2016 Quorum completed
    27 new rooftop installations and had five rooftop losses (for an annual
    churn of 1.5%) and ended the year with a total of 325 active installed
    dealership rooftops. The result is that FY2016 new installations revenue
    increased by 81% over FY2015 and support revenue for FY2016 increased by
    12% over FY2015. Recurring SaaS support revenue represented 72% of total
    revenue for FY2016.
--  Sales Backlog - not all dealership rooftops sold in FY2016 were able to
    be installed during that year and Quorum has 20 sold dealership rooftops
    that plan to be installed in FY2017 compared to 13 at the end of FY2015
    that were installed in FY2016. The profile of newly acquired dealerships
    has continued to trend towards larger and multi-point operations.
--  Total Addressable Market (TAM) - in order to increase our TAM, Quorum
    must complete multi- month projects with vehicle manufacturers (OEMs) to
    integrate to their systems. In January of FY2016 we piloted our first
    Ford dealership in Canada and in December of FY2016 we piloted our first
    Nissan dealership in Canada with integration to both Ford and Nissan's
    systems. The result is that Quorum can now sell our software to Ford and
    Nissan dealerships which increases our TAM in Canada by 40%. We plan to
    continue adding manufacture integration in Canada and the US in 2017 and
    beyond.
--  Dealership Utilization - Quorum continues to enhance Communicator, VIP
    and Sales CRM and we track key dealership utilization metrics related to
    these areas in a Dealership Success Scorecard below. Getting our
    dealerships to utilize these areas has the following benefits to Quorum:
    --  Drives in training revenue - training visits are up 85% for FY2016
        compared to FY2015. Training revenue now represents 78% of Quorum's
        total Add-on revenue and Add-on revenue is up 41% in FY2016 over
        FY2015.
    --  Increased customer satisfaction and reference-ability of our
        customers.
--  Core Revenue - Core revenue is comprised of Support, Add-on and New
    installations revenue. Transitions revenue pertains to conversion of
    dealerships to new server hardware and/or the latest version of
    Microsoft operating system and database software. Core revenue increased
    by 21% in FY2016 vs FY2015.

Dealership Success Scorecard(1)


          - Communicator - Dealerships utilizing Communicator: 221
                      - Messages in FY2016: 4,132,671
                    - Year over year message growth: 27%
                                     -
              - M3 (VIP only) - Dealerships utilizing VIP: 124
        - Total FY2016 incremental Customer Pay revenue: $68,398,154
                    - Year over year revenue growth: 34%
                                      -
                   - Sales CRM - Dealerships trained: 63
              - Average Q4 FY2016 utilization of Sales CRM 64%
- Total # of dealerships that have moved away from 3rd party CRM systems: 18

(1)The numbers and dollar figures included in the Dealership Success Scorecard are based on dealership results.


--  Areas of the Dealer Scorecard
        --  Communicator features text, email and instant message
            functionality that is integrated into the XSELLERATOR workflow.
        --  Make More Money ("M3") is an initiative which focuses on ten
            XSELLERATOR processes that drive incremental revenue into our
            dealership customers' operations. Aggregate data from the
            Vehicle Inspection Process ("VIP"), which is just one of the ten
            M3 processes, is shown above.
        --  Sales CRM - Quorum continues to make significant enhancements to
            sales Customer Relationship Management (CRM) features within
            XSELLERATOR.
--  Customer Satisfaction metrics are as follows:
    --  Each year we conduct two Customer Satisfaction Index ("CSI")
        surveys. The combined yearly results are:
        --  2016 reported 87% of dealer principals as "satisfied" or "very
            satisfied" and 86% of end users as "satisfied" or "very
            satisfied" overall.
        --  2015 reported 82% of dealer principals as "satisfied" or "very
            satisfied" and 89% of end users as "satisfied" or "very
            satisfied" overall.
    --  Our monthly Support Center CSI survey continues to report
        approximately 95% "very satisfied" with the service received from
        our support team.
--  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.

Other key financial results highlights for FY2016 are as follows:


--  Gross margin increased to $6,368K in FY2016, from $5,571K in FY2015, a
    14% increase. Gross margin as a percentage of gross revenue remained
    consistent at 52% in FY2016 compared to FY2015.
--  Earnings before interest, taxes, depreciation, amortization, stock-based
    compensation and foreign exchange (EBITDA) increased to $1,917K in
    FY2016 from $1,716K in FY2015. EBITDA as a percent of gross revenue
    remained consistent at 16% in FY2016 compared to FY2015. Increased gross
    margin was offset by:
    --  Higher salaries and benefits expense due to increased staffing
        levels.
    --  Increased general and administrative costs due to higher office
        rental expense and an increase in consulting services. During
        FY2016, the Corporation expanded both the Calgary, Alberta and St.
        John's, Newfoundland offices.
--  Income before deferred income tax expense increased to $664K for FY2016
    compared to $594K in FY2015.
--  Net working capital at December 31, 2016 was $5,622K with a current
    ratio of 5.42, compared to $5,129K at December 31, 2015, with a current
    ratio of 5.05, an increase of $493K. The increase in working capital is
    due to due to the increase in cash and accounts receivable during
    FY2016, offset by an increase in accounts payable and accrued
    liabilities.

Quorum has seen thirteen consecutive quarters of significant revenue growth (over the prior year quarters) and we continue to increase our staffing levels in anticipation of future growth. Our strategy to focus on product innovations, improving product utilization and superior levels of customer service has increased the market demand for our product and services.

Quorum has filed its 2016 consolidated financial statements and notes thereto as at and for the period ended December 31, 2016 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
                                    Year ended     Year ended     Year ended
                                  December 31,   December 31,   December 31,
                                          2016           2015           2014
----------------------------------------------------------------------------

  Gross revenue                 $   12,178,450 $   10,744,478 $    9,215,768

  Direct costs                       5,810,362      5,173,396      4,197,747

  Gross margin                       6,368,088      5,571,082      5,018,021

  Earnings before interest,
   taxes, depreciation and
    amortization (EBITDA)            1,916,765      1,716,184      1,476,110

  Income before deferred income
   tax                                 663,709        593,586        502,087

  Net income                           493,059        451,714        192,516

  Comprehensive income                 448,886        709,727        308,761

  Basic net income per share    $       0.0096 $       0.0107 $       0.0046
  Fully diluted net income per
   share                        $       0.0096 $       0.0107 $       0.0046

  Weighted average number of
   common shares
    Basic                           51,485,200     42,318,803     41,529,838
    Diluted                         51,485,200     42,318,803     41,818,297

About Quorum

Quorum is a North American company focused on developing, marketing, implementing and supporting its automotive dealership and customer management system, XSELLERATOR. Quorum offers the system to franchised, independent and some non-automotive dealerships in Canada and the United States. XSELLERATOR automates, integrates and streamlines every process across departments in a dealership. The system includes tools designed to maximize revenue opportunities for dealerships such as Customer Relationship Management and service inspection and quoting processes. Quorum is a Microsoft partner and XSELLERATOR is developed with modern mobile-enabled technology. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX VENTURE) under the symbol QIS and in 2016 was selected to the TSX Venture 50®, an annual ranking of the strongest performing companies on the TSX Venture Exchange. 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 December 31, 2016. 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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this release and neither accepts 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 an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
As enterprise cloud becomes the norm, businesses and government programs must address compounded regulatory compliance related to data privacy and information protection. The most recent, Controlled Unclassified Information and the EU’s GDPR have board level implications and companies still struggle with demonstrating due diligence. Developers and DevOps leaders, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by in...
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained Michael Fuhrman, Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...