AirIQ Announces Results for September 30, 2013
Positive Cash from Operating Activities and 6th Consecutive
Quarter of Revenue Growth
TORONTO, ONTARIO--(Marketwired - Nov 28, 2013) - AirIQ Inc.
("AirIQ") (TSX-VENTURE:IQ), a supplier of wireless asset management
services, today announced its financial results for the three
months and six months ended September 30, 2013.
"The Company is
gaining momentum with growing revenues while still watching its
expenses," said Donald Gibbs, President and Chief Executive Officer
of AirIQ.
The highlights of
the quarter were as follows:
- The Company is shipping under the blanket contract previously
announced with a major North American rental company. In the
quarter the Company was approved for installation in the customer's
trucks and has commenced shipments to this division.
- 74% of revenue in the quarter was recurring.
- Positive cash flow from operating activities of $28 during the
quarter.
- EBITDAS of ($44) for the quarter ended September 30, 2013
improved over the prior quarter ended June 30, 2013.
- Revenue of $608 for the current quarter improved from the prior
quarter.
- Gross profit of 64.1% was slightly reduced from the prior
quarter.
- Expenses (excluding stock based compensation) of $434 were down
from $459 in the prior quarter and included a charge for the
Company's annual meeting of $23.
- Net loss of ($74) was lower than the ($107) reported in the
prior quarter.
Financial
Highlights
|
Three months ended |
|
Three months ended |
|
|
30-Sep-13 |
|
30-Sep-12 |
|
Total
Revenue |
$ |
608 |
|
$ |
580 |
|
Gross
Margin |
$ |
390 |
|
$ |
402 |
|
Gross
Margin % |
|
64.1 |
% |
|
69.3 |
% |
Net
Income (loss) |
$ |
(74 |
) |
$ |
(96 |
) |
Net
Income (loss) per share, basic and diluted |
$ |
0.01 |
|
$ |
(0.00 |
) |
EBITDAS* |
$ |
(44 |
) |
$ |
(54 |
) |
* 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. |
Business Review
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.
Overview
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.
The Company's
audited consolidated financial statements as at and for the year
ended March 31, 2013, including notes thereto, and Management's
Discussion and Analysis for the same period were filed with the
Canadian securities regulatory authorities on July 29, 2013, 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).
Revenues for the
three months ended September 30, 2013, increased 5% to $608 from
$580 for the three months ended September 30, 2012. Revenues for
the six months ended September 30, 2013, increased 5% to $1,212
from $1,157 for the six months ended September 30, 2012.
Approximately 74% and 73% of the total revenue for the three and
six month periods ended September 31, 2013 respectively, represents
recurring revenue from the Company's airtime customers.
Overall, gross
profit for the three months ended September 30, 2013 decreased by
3% to $390 and 1% to $784 for the six months ended September 30,
2013 compared to $402 and $791 for the three months and six months
ended September 30, 2012.
Sales and marketing,
research and development and general and administrative expenses
totalled $442 and $905, respectively for the three months and six
months ended September 30, 2013 compared to $466 and $939,
respectively for the three months and six months ended September
30, 2012.
The Company's net
loss for the three months and six months ended September 30, 2013
was $74 and $181, respectively, as compared to a net loss of $96
and $207, respectively, for the three months and six months ended
September 30, 2012, an improvement of $22 and $26,
respectively.
Stock Option
Grant
The Company also
announced that effective November 28, 2013, the Board of Directors
granted stock options to each of the non-executive Board members in
consideration for acting on the Company's Board. A total of 250,000
options for common shares were granted with an exercise price of
$0.05 per share, in lieu of any cash compensation to the Board
members. Vernon Lobo, Chairman of the Board, was granted options to
purchase up to 150,000 common shares of the Company and George
Christopoulos was granted options to purchase up to 100,000 common
shares. The term of the options is ten years from the date of grant
and the options vest over a period of one year; 25% each quarter.
All other terms of the option grants are in accordance with the
Company's Stock Option Plan and are subject to approval of the TSX
Venture Exchange.
No Conference
Call
AirIQ will not be
holding a conference call to discuss results. The Company's
financial report, including complete financial statements and
Management's Discussion and Analysis will be available on the
Company's website www.airiq.com and at www.sedar.com on November
28, 2013.
About AirIQ
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.
Forward-looking
Statements
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.
AirIQ Inc.Donald GibbsPresident and Chief Executive Officer(905)
831-6444, Ext. 4255dgibbs@airiq.comwww.airiq.com
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