VIQ Solutions Reports Fourth Quarter and Full Year 2011 Results
(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 13 April 2012
Release date- 12042012 - Markham, Ontario - VIQ Solutions Inc. ('VIQ Solutions' or the 'Corporation') (TSX Venture: VQS), a world leader in computer-based digital audio and video capture and management, today reported its financial results for the three and twelve month periods ended December 31, 2011.
Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards ('IFRS')1.
'In 2011, VIQ Solutions achieved profitability for the first time with the strongest financial performance in the company's history,' said David Outhwaite, President and Chief Executive Office of VIQ Solutions. 'Our accomplishments in 2011 will allow us to continue to aggressively pursue our growth strategy and maintain our positive momentum in 2012.'
Revenue was $15.3 million for the year ended December 31, 2011 as compared to $12.2 million for the previous year, representing an increase of 25%. Gross profit for 2011 was $6.5 million as compared to $3.9 million in 2010, representing an increase of 68%. Gross profit expressed as a percentage of revenues was 42% as compared to 32% in 2010, primarily due to the increased revenue and associated gross profit from our computer products and services business unit. Net income was $75,094 for the year or $0.00 per share as compared to a net loss of $2,580,729 or $0.03 per share for the previous year. EBITDA2 was $487,309 for the year ended December 31, 2011 as compared to an EBITDA loss of $2,115,813 for the same period in 2010. Cash flow from operations was $614,033 for the year ended December 31, 2011 as compared to a cash use of $1,159,911 for the same period in 2010.
Fourth Quarter Results
Revenues increased from $3.3 million in the fourth quarter of 2010 to $3.4 million in the fourth quarter of 2011 primarily due to an increase in revenue from our computer products and services business. Gross margin for the quarter was relatively unchanged at 35% as compared to 34% for the fourth quarter of 2010. Selling and administrative expenses were $1.4 million in 2011, unchanged from the same period in 2010. Net loss was $528,281 for the three month period ended December 31, 2011 as compared to $1,290,846 for the three month period ended December 31, 2010, which included a goodwill impairment charge of $820,000. Cash flow from operations was $69,013 for the fourth quarter of 2011 as compared to a cash use of $369,609 for the same period in 2010.
2011 Financial Highlights
Strong revenue growth year over year, particularly in our computer products and services business unit;
Achieved significantly improved financial results year over year with positive EBITDA and, for the first time in the Corporation's history, positive net income for the year;
Repaid the majority of our long-term debt including all of our outstanding bridge loans; and
Subsequent to the year end, successfully completed the national roll-out of 536 installations of our multi-year digital audio recording and storage project in the United Kingdom with Atos and Logica.
1. Effective January 1, 2011, Canadian publicly listed entities were required to prepare their financial statements in accordance with IFRS. Due to the requirement to present comparative financial information, the effective transition date is January 1, 2010. The year ended December 31, 2011 was the Corporation's first annual reporting period under IFRS. Please refer to VIQ Solutions' 2011 Management's Discussion and Analysis for a summary of the full impact as a result of the conversion from Canadian generally accepted accounting principles to IFRS.
2. EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a valuation metric. Please refer to VIQ Solutions' 2011 Management's Discussion and Analysis for a reconciliation and definition of non-IFRS measures.
Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2011 will be posted on VIQ Solution's website (under Investor Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2011, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions is a global leader in computer-based digital audio and video capture and management. We develop software solutions that capture, digitize, and compress audio and video data, which is securely stored in a multi-tiered server system where it is easily searchable and shareable. Our innovative media processor technology allows users to remotely control audio-video capture in multiple locations from a single satellite location, allowing large-scale and complex installations to be managed efficiently by fewer resources. VIQ Solutions' technologies are installed in courts, legislative assemblies, law enforcement and hearing rooms around the world.
Forward looking statements
This release contains forward-looking statements and other statements concerning the Corporation's objectives and strategies and management's beliefs, plans and intentions about our achievements, goals, performance and other future events. These statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'will,' 'would' and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions' current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made due to a number of factors including risks related to our ability to successfully execute our business plan which includes our revenue growth, our liquidity, our operating results, our technology and products. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions does not intend and does not assume any obligation to update these forwardlooking statements.
For further information: David Outhwaite, President & CEO, VIQ Solutions, (905) 948-8266 ext. 250, email: firstname.lastname@example.org; or Karen Hersh, Chief Financial Officer, VIQ Solutions, (905) 948-8266 ext. 240, email: email@example.com
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