OTTAWA, April 2, 2020 /CNW/ - Intouch Insight
Ltd., ("Intouch or the Company") (TSXV: INX) (OTCQB: INXSF)
today announced its operating and financial results for the year
ended December 31, 2019.
Revenue for 2019 was $19,255,202,
which was 29% higher than revenue of $14,888,450 in 2018 - the sixth straight year of
revenue growth. Earnings before income taxes were $460,304 in 2019 compared to a net loss of
$2,730,797 in 2018. Company-defined
adjusted EBITDA was $1,540,000 for 2019, compared to a negative
EBITDA of $1,896,000 in 2018.
Gross Margin remained stable at 52% in both 2019 and 2018.
Improving the Company's cost structure was a strategic management
initiative for 2019. Notwithstanding the decrease in sales and
marketing expenses, profits, EBITDA and revenues increased
significantly.
"2019 finished the way it started, exceeding management's
initial expectations for revenue, earnings and EBITDA. We are
incredibly pleased with the progress the Company has been able to
make over the last several years and believe that the Company has
the products and capabilities to continue its progress well into
the future. 2020 will be a challenging year for businesses in
our industry due to the widespread temporary shutdown of companies
in the retail, foodservice and hospitality industries.
Intouch began 2020 as one of the largest and fastest growing
companies in our industry and has taken swift and decisive action
to ensure that we emerge from the crisis in a strong position to
continuing our revenue growth and acquisition activity," said
Cameron Watt, President and Chief
Executive Officer.
"Our sales and marketing teams are pivoting to focus on how
Intouch software can assist more companies in their new working
environments as well as maintaining a healthy pipeline of new
opportunities for the future," said Watt.
Consolidated
Statements of Operations
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2019
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2018
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Revenue
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$
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19,255,202
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$
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14,888,450
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Cost of
services
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9,292,174
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7,175,306
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Gross
profit
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9,963,028
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7,713,144
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Total operating
expenses
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9,426,893
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10,431,676
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Income (loss) from
operating activities
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536,135
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(2,718,532)
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Finance
costs
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(75,831)
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(12,265)
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Net income (loss)
before income taxes
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$
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460,304
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$
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(2,730,797)
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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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Intouch Insight Ltd.