AirIQ Announces Results for December 31, 2013
Company Completes $485K Financing and EBITDAS Improved Over
Prior Year's Fiscal Quarter
TORONTO, ONTARIO--(Marketwired - Feb 24, 2014) - AirIQ Inc.
("AirIQ") (TSX-VENTURE:IQ), a supplier of wireless asset management
services, today announced its financial results for the three
months and nine months ended December 31, 2013.
"Although third
quarter sales are typically lower because of the holiday season,
the Company improved sales and EBITDAS over the same quarter in the
prior fiscal year," said Donald Gibbs, President and Chief
Executive Officer of AirIQ. "With the success of the Company's
working capital financing and the EBITDAS improvement over the same
quarter last year, the Company is positioned to grow and service
its customers better," continued Mr. Gibbs.
The highlights of
the quarter were as follows:
- On December 17, 2013, the Company closed a $485 financing
comprised of a $100 loan and a $385 private placement.
- 74% of revenue in the quarter was recurring.
- EBITDAS loss of $53 for the quarter ended December 31, 2013
improved from EBITDAS loss of $74 in the quarter ended December 31,
2012.
- Expenses (excluding stock based compensation) of $429 were down
from $434 in the prior quarter.
- Revenue of $601 for the current quarter improved from $583 for
the quarter ended December 31, 2012.
- Net loss of $183 included a one-time stock based compensation
charge of $98 related to the Company's financing on December 17,
2013.
Financial
Highlights |
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Three months ended |
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Three months ended |
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31-Dec-13 |
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31-Dec-12 |
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Total Revenue |
|
$ |
601 |
|
|
$ |
583 |
|
Gross Margin |
|
$ |
376 |
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$ |
388 |
|
Gross Margin % |
|
|
62.6 |
% |
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66.6 |
% |
Net Income (loss) |
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$ |
(183 |
) |
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$ |
(109 |
) |
Net Income (loss) per share, basic and diluted |
|
$ |
(0.01 |
) |
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$ |
(0.01 |
) |
EBITDAS* |
|
$ |
(53 |
) |
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$ |
(74 |
) |
*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.
Revenues for the
three months ended December 31, 2013, increased 3% to $601 from
$583 for the three months ended December 31, 2012. Revenues for the
nine months ended December 31, 2013, increased 4% to $1,813 from
$1,740 for the nine months ended December 31, 2012. Approximately
74% and 73% of the total revenue for the three and nine month
periods ended December 31, 2013 respectively, represents recurring
revenue from the Company's airtime customers.
Overall, gross
profit for the three months ended December 31, 2013, decreased by
3% to $376 and 2% to $1,160 for the nine months ended December 31,
2013 compared to $388 and $1,179 for the three months and nine
months ended December 31, 2012.
Sales and marketing,
research and development and general and administrative expenses
totalled $529 and $1,434, respectively for the three months and
nine months ended December 31, 2013 compared to $473 and $1,412,
respectively for the three months and nine months ended December
31, 2012.
The Company's net
loss for the three months and nine months ended December 31, 2013
was $183 and $364, respectively, as compared to a net loss of $109
and $316, respectively, for the three months and nine months ended
December 31, 2012, a decline of $74 and $48, respectively.
The Company's
unaudited consolidated condensed interim financial statements for
the three months and nine months ended December 31, 2013, including
notes thereto, and Management's Discussion and Analysis for the
same period were filed with the Canadian securities regulatory
authorities today 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).
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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