OTTAWA, May 21, 2020 /CNW/ - Intouch Insight
Ltd., ("Intouch or the Company") (TSXV: INX) (OTCQB: INXSF)
today announced its operating and financial results for the quarter
ended March 31, 2020.
Revenue from Q1 2020 was $4,754,107, which was 4% higher than revenue of
$4,588,211 in Q1 2019.
Operating earnings increased to $156,329 in Q1 2020 compared to $32,712 in Q1 2019. The quarter's net loss was
$201,348 compared to a loss of
$20,696 in Q1 2019 due to impairments
recorded as a result of the COVID-19 pandemic. Company-defined
adjusted EBITDA was up 63% - $415,702 for Q1 2020, compared to
$255,298 in Q1 2019. Gross Margin
declined to 50.4% in Q1 2020 from 52.8% the prior year.
"I am very pleased that the business was able to show growth in
both revenues, operating income and EBITDA despite the COVID-19
impacts which began in March. As evidenced by these results,
we were positioned for a solid quarter before the global pandemic
took the wind out of our sails. I am also proud of the way
the Intouch team has dealt with the uncertainty thrust upon them
through the end of the quarter, including the speed at which the
business was able to reduce operating expenses. Mitigating
the impacts of COVID-19 and ensuring the business is poised to
rebuild rapidly will continue to be the top priorities for the
foreseeable future. Of course, part of rebuilding is ensuring that
each product we sell is well-positioned in the COVID-19 world,"
said Cameron Watt, President and
Chief Executive Officer.
"As we start to see sectors of the economy reopen, it is clear
that positive customer experience is going to be created not only
by courteous and smiling employees but by the execution against new
and evolving requirements regarding the health and safety of both
employees and customers. Our software and services can help
companies not only implement required changes but also measure the
success of their execution against them and how they impact their
customers and brand perception. Therefore, we are confident
that the strength of our technology and our long history of
customer stability will serve us well as we work towards a full
economic recovery. We continue to take every step necessary
to ensure overall corporate stability while leveraging our
strengths to remain in a leadership position when current crisis
abates," said Watt.
Consolidated
Statements of Operations
|
|
|
Q1
2020
|
Q1 2019
|
|
|
|
|
Revenue
|
$
4,754,107
|
$
4,588,211
|
Cost of
services
|
2,356,589
|
2,167,801
|
|
|
|
|
Gross
profit
|
2,397,518
|
2,420,410
|
|
|
|
|
Total operating
expenses
|
2,241,189
|
2,387,698
|
|
|
|
|
Income (loss) from
operating activities
|
156,329
|
32,712
|
|
|
|
|
Other earnings
(expense)
|
(357,677)
|
(53,408)
|
Net loss
|
$
(201,348)
|
$
(20,696)
|
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.