Posera Announces Second Quarter 2018 Financial Results
Toronto, ON – August 14th, 2018 – 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 six months ended and June 30th, 2018.
During the three months ended June 30, 2018, Posera reported total revenues of $2.4 million compared to total revenues of $2.7 million in the prior quarter. Year-to-date, for the six months ended June 30, 2018, total revenues increased 0.1% to $5.1 million when compared to the six months ended June 30, 2017.
The Company is pleased to report growth of 6.9% in its recurring revenues for the first six months of fiscal 2018, to over $1.4 million, compared to the first six months of fiscal 2017. The Company’s gross profit percentage, was relatively flat at 41%, compared to 42% in the same period in 2018, notwithstanding the growth in the Kitchen Display Systems (KDS) business, which typically has lower margins as it is more hardware intensive. Management continues to be encouraged in the growth of the KDS product line, particularly in growth of KDS sales to non-Maitre’D customers, with sales of 248 KDS units in Q2 2018, a growth of 28% over the same period last year.
Normalized EBITDA improved by 6% between the consecutive quarters, to a loss of $0.5 million, as result of lower costs of inventory and lower operating expenses. Posera recognized a net loss from continuing operations² for the three months ended June 30, 2018 of $0.9 million, an improvement of 2% from the three months ended March 31, 2018.
Total Revenue excludes the discontinued operations for the FingerPrints transaction as previously discussed on Page #4 of the Company’s Management Discussion and Analysis (MD&A) for the three and six-months ended June 30, 2018.
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.
- Total revenues¹ for the three-months ended June 30, 2018 was $2,352,937 compared to $2,954,903 for the three months ended June 30, 2017 and compared to $2,742,337 for the three months ended March 31, 2018;
- Total revenues¹ for the six months ended June 30, 2018 was $5,095,274 compared $5,088,415 for the six months ended June 30, 2017;
- Recurring revenues¹ for the three months ended June 30, 2018 were $735,423, an increase of 8% compared to $680,852 for the three months ended June 30, 2017, and an increase of 9% compared to $675,559 for the three months ended March 31, 2018;
- Net loss² for the three months ended June 30, 2018 was a loss of $902,438, a 2.4% improvement compared to $924,709 for the three months ended June 30, 2017, and a 1.6% improvement compared to $917,082 for the three months ended March 31, 2018;
- Normalized EBITDA² loss for the three months ended June 30, 2018 was a loss of $512,181, compared to a positive normalized EBITDA of $102,832 for the three months ended June 30, 2017, and compared to a normalized EBITDA loss of $547,177 for the three months ended March 31, 2018; and
- Normalized EBITDA² loss for the six months ended June 30, 2018 was a loss of $1,059,358, compared to a normalized EBITDA loss of $754,888 for the six months ended June 30, 2017.
Amount presented applies the retrospective presentation for discontinued operations for the FingerPrints transaction as discussed in the Company’s MD&A on Page #4 for the three and six-months ended June 30, 2018.
Presentation of these amounts include the results from discontinued operations as discussed on Page #4 of the Company’s MD&A for the three and six-months ended June 30, 2018.
Posera has been a leading provider of hospitality technology for more than 30 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.
For more information:
Kevin Mills, Chief Financial Officer