LEVIS, QC,
Oct. 24, 2013 /PRNewswire/ - DEQ
Systems Corp. (TSX-V: DEQ) ("DEQ" or the "Company") announces the
filing of its third quarter financial results for the period ended
August 31, 2013. The Consolidated
Financial Statements are available on SEDAR (www.sedar.com) and
DEQ's website. A conference call will be held on Friday, October 25, 2013 at 11am EST to present and discuss these results.
Those interested in participating in the call should dial toll free
1 (800) 768-4046 or 1 (416) 981-9000. A presentation is
available on DEQ's website in the Investors/Financial
Reports/Presentation section to support the call content.
2013 Q3 and Nine-Month Results:
Financial Metrics
Third Quarter:
- 29% increase in product rental revenue from $1,116,000 in Q3-2012 to $1,445,000 in Q3-2013.
- 25% increase in total recurring revenue from $1,395,000 in Q3-2012 to $1,741,000 in Q3-2013.
- 25% increase in total revenue from $1,412,000 in Q3-2012 to $1,764,000 in Q3-2013.
Nine-Month Period:
- 30% increase in product rental revenue from $3,055,000 in 2012 to $3,981,000 in 2013.
- 23% increase in total recurring revenue from $3,929,000 in 2012 to $4,849,000 in 2013.
- 27% increase in total revenue from $3,988,000 in 2012 to $5,077,000 in 2013.
- Operating Expenses before non-cash items
- 9% increase from $1,194,000 in
Q3-2012 to $1,307,000 in Q3-2013
- 7% increase for the nine-month period from $3,795,000 in 2012 to $4,054,000 in 2013.
- Operating expenses should remain stable for the last quarter of
2013
- EBITDA
- Positive EBITDA of $155,000 in
Q3-2013 compared to $85,000 in
Q3-2012.
- Positive EBITDA of $277,000 for
the nine-month period in 2013 compared to $(290,000) for the same period in 2012. This is
an improvement of $567,000 for the
nine-month period.
- Cash Flow
- Positive cash flow from operating activities before working
capital items of $158,000 in Q3-2013
compared to a positive cash flow of $40,000 in Q3-2012.
- For the nine-month period, DEQ had a positive cash flow of
$298,000 in 2013 from operating
activities before working capital items compared to a cash flow of
$(194,000) in 2012
Third Quarter Highlights
- As of August 31, 2013, DEQ had
1,990 units installed worldwide compared to 1,636 units as of
August 31, 2012.
- During the third quarter of 2013, a total of 57 net units were
installed compared to net installations of 106 units in the
third quarter of 2012. Unusual and very sporadic product volatility
counts for this lower net install increase and the Company does not
see this as a recurring matter or a concern.
- The Company is currently generating average recurring revenue
of $3,425 per unit per year on its
worldwide install base of 1,990 units for total annual recurring
revenue of approximately $6,800,000.
"The third quarter has yielded continued solid
results and progression" stated Francois
Proulx, Interim CEO. "The initial Hawk™
electronic shoe placements are doing well and we are thrilled with
the market reception of this new and promising product. Our
continued penetration in the USA
with the G3™ product at significant locations like the
Borgata in Atlantic City and our
expansion into Asia with Las Vegas
Sands as well as with other distinguished customers are fuelling
our success and we are very excited about these and other growth
opportunities. Our shareholder base is now stronger with the
addition of several new important stockholders recently and we are
extremely happy to see them demonstrate their confidence in our
business plan and in the continued positive results we are
delivering from a financial, product and market penetration
perspective."
| Statement of Earnings |
|
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
Third
Quarter |
Nine-Month Period |
| |
|
|
|
|
August 31,
2012 |
|
August 31,
2013 |
|
August 31,
2012 |
|
August 31,
2013 |
| |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
|
|
|
| Product rental |
1,116,000 |
|
1,445,000 |
|
3,055,000 |
|
3,981,000 |
| Royalties |
279,000 |
|
296,000 |
|
874,000 |
|
868,000 |
| Total recurring revenue |
1,395,000 |
|
1,741,000 |
|
3,929,000 |
|
4,849,000 |
| Non recurring revenue |
17,000 |
|
23,000 |
|
59,000 |
|
228,000 |
| Total Revenue |
1,412,000 |
|
1,764,000 |
|
3,988,000 |
|
5,077,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit
(1) |
1,280,000 |
|
1,464,000 |
|
3,505,000 |
|
4,332,000 |
| % Gross margin |
90% |
|
83% |
|
88% |
|
85% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses
(1) |
1,195,000 |
|
1,309,000 |
|
3,795,000 |
|
4,055,000 |
| |
|
|
|
|
|
|
|
| EBITDA (2) |
85,000 |
|
155,000 |
|
(290,000) |
|
277,000 |
| |
|
|
|
|
|
|
|
| Stock based compensation |
20,000 |
|
5,000 |
|
66,000 |
|
153,000 |
| Amortization expenses |
711,000 |
|
703,000 |
|
2,103,000 |
|
2,083,000 |
| Interest expenses |
4,000 |
|
4,000 |
|
8,000 |
|
11,000 |
| Foreign exchange (gain) loss |
40,000 |
|
15,000 |
|
28,000 |
|
1,000 |
| Net Income (Loss) |
(690,000) |
|
(572,000) |
|
(2,495,000) |
|
(1,971,000) |
| Net Income
(Loss ) per share |
$(0.010) |
|
$(0.008) |
|
$(0.037) |
|
$(0.028) |
____________________________________________________________________________________________________________________________________________________________________________________________________________
| Note 1: |
Gross profit and operating expenses excluded non-cash items
such as depreciation, amortization and stock based
compensation. |
| Note 2: |
We use EBITDA (Earnings before Stock option based compensation,
Interest, Taxes, Depreciation, Amortization and Foreign exchange)
as performance measurements in our financial disclosure. This
measure is not recognized under IFRS. The reconciliations above
demonstrate how we calculate such measurements from our financial
statements.
|
Financial Position
| |
|
|
November 30,
2012 |
|
May 31,
2013 |
|
August 31,
2013 |
| |
|
|
|
|
|
|
(audited) |
|
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
750,000 |
|
703,000 |
|
1,770,000 |
| Current assets (other than cash) |
|
|
1,884,000 |
|
1,795,000 |
|
1,842,000 |
| Long-term assets |
|
|
8,884,000 |
|
7,721,000 |
|
7,166,000 |
| Total Assets |
|
|
11,518,000 |
|
10,219,000 |
|
10,778,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
1,278,000 |
|
1,217,000 |
|
1,328,000 |
| Shareholders' equity |
|
|
10,240,000 |
|
9,002,000 |
|
9,450,000 |
| Total Liabilities and
Equity |
|
|
11,518,000 |
|
10,219,000 |
|
10,778,000 |
| |
|
|
|
|
|
|
|
| Number of shares outstanding |
|
|
69,182,000 |
|
69,182,000 |
|
71,682,000 |
ABOUT DEQ
DEQ Systems Corp. (TSXV: DEQ) is a
customer-centric company that delivers to the global gaming
industry best-of-breed table-game technology-related products that
add value and increase client revenue. DEQ provides
table-game-bonusing technology, table games, baccarat results
tracking, and jackpot connectivity solutions to more than 275
casinos in 30 countries. DEQ is an intellectual-property-focused
company that has an extensive patent portfolio of more than 20
patents recognized in 50 countries. For further information,
please visit www.deq.com.
TSX Venture does not accept any
responsibility regarding the accuracy of the information contained
in this press release.
Forward-looking statements contained in this
Press Release involve known and unknown risks, uncertainties and
other factors that may cause
actual results, performance and achievements of the Company to
be materially different from any future results,
performance or achievements expressed or implied by the said
forward-looking statements.
SOURCE DEQ SYSTEMS CORP.