AirIQ Announces Results for December 31, 2013
February 24 2014 - 3:50PM
Marketwired Canada
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
Three months Three months
ended ended
31-Dec-13 31-Dec-12
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Total Revenue $ 601 $ 583
Gross Margin $ 376 $ 388
Gross Margin % 62.6% 66.6%
Net Income (loss) $ (183) $ (109)
Net Income (loss) per share, basic and
diluted $ (0.01) $ (0.01)
EBITDAS(i) $ (53) $ (74)
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(i)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.
FOR FURTHER INFORMATION PLEASE CONTACT:
AirIQ Inc.
Donald Gibbs
President and Chief Executive Officer
(905) 831-6444, Ext. 4255
dgibbs@airiq.com
www.airiq.com
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