Press Releases
In-Touch Survey Systems Ltd. Announces Q2 2009 Financial Results
OTTAWA, August 13, 2009 - In-Touch Survey Systems Ltd. In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue grew by 8% to $1,414,500 in Q2 2009 compared to $1,313,120 in Q2 2008. Net loss for Q2 2009 was $89,267 similar to a net loss of $86,263 in Q2 2008.
The strength of the Canadian dollar caused a foreign exchange loss of $28,500 in Q2 2009 compared to a gain of $1,000 in Q2 2008. FY 2008 Audit costs were $23,000 higher because of the two acquisitions in 2008. Net income was negatively affected because of the product mix as noted below. Also, Market Research revenues were not as high as expected.
Cash flow from operations (adjusted EBITDA - see details in MD&A) was $27,000 in Q2 2009 compared to $30,000 in Q2 2008. The Q2 2009 gross margin was 58% compared to 64% in Q2 2008. Manual Data Collection ('MDC') revenues grew by 20% which accounted for most of the revenue increase. MDC gross margins are typically 40% compared to 70% gross margins for Electronic Data Collection ('EDC'). The sales mix volume, favouring MDC products, was the main factor in the gross margin decrease.
"Even though over one million in EDC orders for 2009 were cancelled due to the economic downturn, Electronic Data Collection ('EDC') Q2 2009 revenues were flat compared to Q2 2008. Our acquisition strategy and hard work by the sales team have largely mitigated the effects of a challenging economic period and maintained Q2 EDC revenues at last year's levels We are closely monitoring Q3 sales as this is when the largest sales order cancellations occurred.," said Michael Gaffney, Chief Executive Officer.
| Consolidated Statements of Operations |
Q2 2009 |
|
|
Q2 2008 |
|
| Revenue |
$ 1,414,500 |
|
|
$ 1,313,120 |
|
| Cost of services and goods sold |
600,409 |
|
|
473,922 |
|
| Gross profit |
814,091 |
|
|
839,198 |
|
| Total operating expenses |
831,612 |
|
|
912,914 |
|
| Earnings (loss) before undernoted items |
(17,521) |
|
|
(73,716) |
|
| Interest expense |
(40,098) |
|
|
(20,332) |
| Amortization of financing costs |
(2,670) |
|
|
(8,123) |
| Amortization of discount on promissory note |
- |
|
|
(16,292) |
| Amortization of intangible asset |
(2,682) |
|
|
(12,997) |
| Change in fair value of derivative |
- |
|
|
44,123 |
| Gain (loss) on foreign exchange |
(28,491) |
|
|
1,074 |
| Gain on disposal of property and equipment |
2,195 |
|
|
- |
| Net loss |
$ (89,267) |
|
|
$ (86,263) |
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
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