Posera Announces Third Quarter 2018 Financial Results
TORONTO, Nov. 14, 2018 /CNW/ – Posera Ltd. (TSX : PAY) (« Posera » or the « Company »), a leading provider of hospitality software and payment solutions, today announced its financial results for the three and nine-months ended and September 30th, 2018.
During the three-months ended September 30, 2018, Posera reported total revenues(1) of $2.33 million compared to total revenues of $2.26 million for the three-months ended September 30, 2017. Year-to-date, for the nine-months ended September 30, 2018, total revenues were flat at $7.43 million when compared to the nine-months ended September 30, 2017. The Company is pleased to report continued growth in its recurring revenues(1,3), as recurring revenues increased 3.7% to $830,049 during the third quarter of 2018, when compared to $800,383 for the third quarter in 2017 and recurring revenues increased $103,591 or 4.5% during the nine-months ended September 30, 2018, when compared to the same comparable period in 2017.
Normalized EBITDA improved during the three-months ended September 30, 2018 by 5.9% and 34.4% between the comparative third quarter of 2017 and the second quarter of 2018 respectively. The normalized EBITDA results have improved due to a reduction of costs of sales and operating expenses between the comparable periods on a normalized basis. Posera recognized a net loss from continuing operations(2,4) for the three-months ended September 30, 2018 of $0.91 million, an increase in the loss by 73.2% and 0.1% from the three months ended September 30, 2017 and June 30, 2018 respectively.
Key Quarterly Achievements
- SecureTablePay (« STP ») announced a rollout with its first major US corporate customer during the third quarter of 2018;
- Management continued to focus on reducing its controllable costs which resulted in the exit of the higher-cost, long-term lease for its corporate office location in London, Ontario, in favour of a smaller, cost-effective and flexible office space arrangement. As a result, during the third quarter of 2018, the Company incurred a break-fee of approximately $150,000 to end the lease early and the on-going facility costs for the Company’s corporate office employees have been reduced by more than 50%;
- During the third quarter of 2018, Posera launched its Databoard – Advanced Reporting product, which provides real-time, management information on the cloud, enhancing its platform offerings and addressing customers’ requirement for cloud-based products; and
- Kitchen Display Systems (« KDS ») business deployed 436 devices during the third quarter of 2018, representing an increase of 248 devices (132%) and 212 devices (95%) when compared to the third quarter of 2017 and the second quarter of 2018 respectively.
The Company will hold a conference call on Monday, December 3rd, 2018 to discuss the financial results for the three and nine-months ended September 30th, 2018, at 4:00 PM Eastern Standard Time hosted by Dan Poirier, Chief Executive Officer and Kevin Mills, Chief Financial Officer. A question and answer session will follow the corporate update.
CONFERENCE CALL DETAILS
Date: Monday, December 3rd, 2018
Time: 4:00 PM Eastern Standard Time
Participant Dial-in Numbers:
Local – Toronto (+1) 647-427-7450
Toll Free – North America (+1) 888-231-8191
Conference ID: 2198394
Please connect at least 10 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
- Total revenue(1) for the three-months ended September 30, 2018 was $2,334,761. an increase of 3.4% compared to the three-months ended September 30, 2017 of $2,258,166 and relatively unchanged compared to the three-months ended June 30, 2018 $2,352,937;
- Total revenues(1) for the nine-months ended September 30, 2018 was $7,430,035 compared $7,436,582 for the nine-months ended September 30, 2017;
- Recurring revenues(1,3) for the three-months ended September 30, 2018 were $830,049, an increase of 3.7% compared to the three-months ended September 30, 2017, and an increase of 2.2% compared to the three-months ended June 30, 2018;
- Net loss(2) from continuing operations for the three-months ended September 30, 2018 was a loss of $909,088, a 73.2% and 0.1% increase in the losses compared to the $524,626 and $902,438 losses for the three-months ended September 30, 2017 and June 30, 2018 respectively;
- Normalized EBITDA(2,4) loss for the three-months ended September 30, 2018 was a loss of $335,898, compared to a normalized EBITDA loss of $356,839 for the three-months ended September 30, 2017, and compared to a loss of $512,181 for the three-months ended June 30, 2018; and
- Normalized EBITDA(2,4) loss for the nine-months ended September 30, 2018 was a loss of $1,395,256, compared to a normalized EBITDA loss of $1,111,727 for the nine-months ended September 30, 2017.
(1) Amount presented applies the retrospective presentation to exclude discontinued operations for the FingerPrints transaction as discussed in the MD&A for the three and nine-months ended September 30, 2018 on Page #11.
(2) Presentation of these amounts include the results from discontinued operations as discussed in the MD&A for the three and nine-months ended September 30, 2018 on Page #11.
(3) See the Recurring Revenues section of this MD&A which highlights the difference between the historical and new method for recording recurring revenues.
(4) Normalized EBITDA adjusted to exclude discontinued operations: Posera’s management defines Normalized EBITDA adjusted for discontinued operations as EBITDA adjusted for discontinued operations above less certain one-time non-recurring expenditures, and non-cash stock-based compensation expense.
Posera has been a leading provider of hospitality technology for more than 20 years. It manages merchant transactions with consumers and facilitates all aspects of the payment transaction.
Posera’s full service solutions include: Maitre’D®, a point of sale system which offers a robust and comprehensive solution including hardware integration services, merchant staff training, system installation services, post-sale software and hardware customer support; KDS, a Kitchen Display System that is now available as a standalone product; and SecureTablePay®, an EMV compliant pay-at-the-table application. Posera’s solutions are deployed globally across the full spectrum of restaurants, from large chains and independent table service restaurants to international quick service chains and its products have been translated into eight languages.
Posera Ltd.’s shares are traded on the Toronto Stock Exchange under the symbol « PAY ».
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions « anticipate », « believe », « plan », « estimate », « expect », « intend », and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Posera’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under « Risks and Uncertainties » in the Annual Information Form to be filed on March 28th, 2018 with the regulatory authorities. Posera assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, unless required by law.
SOURCE Posera Ltd.
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