SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Cortex Business Solutions Announces Q3 Fiscal 2018 Financial Results
[June 12, 2018]

Cortex Business Solutions Announces Q3 Fiscal 2018 Financial Results


Record Adjusted EBITDA(1) and cash flows from operations supported by 15% YOY revenue growth

CALGARY, Alberta, June 12, 2018 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (“Cortex”) (TSXV:CBX), a North American network-as-a-service e-invoicing solutions provider, today announces its three and nine months ended April 30, 2018 (“Q3 F2018”) Management’s Discussion and Analysis and Consolidated Financial Statements. 

“I believe these results are just the beginning of the momentum that we are building at Cortex. Our team has remained focused on helping our customers to deliver their own results and savings with our ever-expanding service. We have never helped as many suppliers get paid as quickly as we have in this past quarter and our recently released payments business is now one of the fastest growing income lines at Cortex. I could not be more excited with the trajectory that Cortex is on,” said Joel Leetzow, President and CEO of Cortex Business Solutions.

“Cortex was successful in growing its recurring access revenue YTD by 26% and overall YTD revenue by 15% compared to prior year. Along with another quarter of record adjusted EBITDA, these results and the large cash balance will allow Cortex to explore further growth through M&A and developing new products internally,” said Jason Baird, VP, Finance & CFO of Cortex Business Solutions. “I believe Fiscal 2018 results has confirmed that Cortex is on the right path to achieving its long-term growth strategy.”

Q3 F2018 Financial Highlights

Three months ended April 30, 2018 compared to April 30, 2017

  • Adjusted EBITDA(1) increased 264% or by $0.4 million to $0.6 million from $0.2 million
  • Positive cash flow from operating activities increased 249% to $0.8 million from positive cash flows from operating activities of $0.2 million
  • Overall revenue increased 6% or by $0.2 million to $3.1 million from $2.9 million
  • Access and usage fees increased 12% or by $0.3 million to $2.9 million from $2.6 million
  • Gross profit improved 11% or by $0.2 million to $2.3 million from $2.1 million
  • Net income improved 3,147% or by $0.6 million to $0.6 million from $0.02 million

Nine months ended April 30, 2018 compared to April 30, 2017

  • Adjusted EBITDA(1) increased 358% or by $1.3 million to $1.7 million from $0.4 million
  • Positive cash flow from operating activities increased materially to $1.3 million from positive cash flows from operating activities of $0.006 million
  • Overall revenue increased 15% or by $1.3 million to $9.4 million from $8.1 million
  • Access and usage fees increased 17% or by $1.2 million to $8.6 million from $7.3 million
  • Access fees increased 26% to $5.6 million from $4.4 million
  • Gross profit improved 24% or by $1.2 million to $6.9 million from $5.7 million
  • Net income improved 565% or by $1.6 million to $1.3 million from $(0.3) million

Cash Position

The overall cash position of Cortex improved 21% to $7.6 million at April 30, 2018, 2018 from $6.2 million at July 31, 2017 driven predominantly from an increase in net cash provided by operating activities mainly from higher access and usage fees and project management revenues. 

(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-recurring charges and share based payments. Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. This measure assists the Company in evaluating the Company’s operating performance against its expectations and against other entities. Please refer to the Company’s management’s discussion and analysis for the quarter ended January 31, 2018 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

Cortex’s management will host a conference call, followed by a question and answer period. 

The details of the conference call are as follows:

Date:        Wednesday, June 13, 2018
Time:      10:00 a.m. Eastern time (8:00 a.m. Mountain time) 
Toll-free dial-in number:    1-800-273-9672
International dial-in number:   1-416-340-2216
   

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex Business Solutions at 403 219-2838.

A replay of the conference call will be available after the call through June 20, 2018.

Toll-free replay number:      1-800-408-3053                                               
Toll replay number:    1-905-694-9451  
Replay ID:      1177420#  
    

About Cortex

Cortex’s strategy is to revolutionize B2B document exchange by replacing traditional paper-based manual systems with automated e-invoicing. This positions companies with the scalability and flexibility needed to meet the demands of today’s business. Cortex offers a B2B network that enables electronic invoicing for buying and supplying organizations using flexible connection methods to leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to grow their businesses.

Cortex is currently delivering e-invoicing services to over 10,000 Trading Partners in Oil & Gas, Mining, Manufacturing and Sports & Entertainment industries, with a focused expansion into additional verticals.

For more information, please visit www.cortex.net.

Investor Relations Contacts:

Joel Leetzow               
President and CEO         
jleetzow@cortex.net    
403-219-2838       
             
Jason Baird         
VP, Finance & CFO    
jbaird@cortex.net
403-219-2838    


Cortex Business Solutions Inc.
Condensed Consolidated Interim Statements of Financial Position

(Prepared in Canadian Dollars)
(Unaudited)

  April 30
2018
 July 31
2017
Assets    
     
Current Assets    
Cash and cash equivalents $7,561,299  $6,248,176 
Short-term investments  60,000   60,000 
Accounts receivable 1,092,404   1,220,442 
Prepaid expenses  218,281   180,710 
     
   8,931,984   7,709,328 
     
Long-term receivable  112,083   98,761 
Deposits  67,439   35,061 
Property and equipment  112,428   178,118 
Intangible assets  23,264   30,018 
     
  $9,247,198  $8,051,286 
Liabilities    
     
Current Liabilities    
Accounts payable and accrued liabilities$1,095,390  $1,834,471 
Deferred revenue  375,919   423,734 
Current income tax payable 20,951   9,203 
Current portion of obligations under finance  lease 22,923   - 
     
   1,515,183   2,267,408 
Deferred rent  150,445   - 
Obligations under finance lease 19,511   - 
     
   1,685,139   2,267,408 
Shareholders' Equity    
     
Share capital  60,771,418   60,562,286 
Accumulated other comprehensive income 602,103   591,752 
Contributed surplus  9,802,315   9,526,341 
Deficit  (63,613,777)  (64,896,501)
     
   7,562,059   5,783,878 
     
  $9,247,198  $8,051,286 
 
 


Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Income (Loss) and Comprehensive Income (Loss)
For the three and nine months ended April 30, 2018 and 2017

(Prepared in Canadian Dollars)
(Unaudited)

  Three months ended
April 30
 Nine months ended
April 30
   2018   2017   2018   2017 
Revenue        
Access and usage fees $2,911,847  $2,603,932  $8,575,652  $7,339,745 
Integration fees  87,612   119,792   224,856   220,391 
Project management and other revenue 113,384   207,002   565,963   561,334 
         
   3,112,843   2,930,726   9,366,471   8,121,470 
         
Cost of Sales  799,126   853,057   2,420,930   2,449,037 
         
Gross Profit   2,313,717   2,077,669   6,945,541   5,672,433 
         
Expenses        
Sales and marketing  500,085   596,473   1,674,647   1,640,534 
Research and development  473,928   500,338   1,410,658   1,403,028 
General and administrative  696,160   908,697   2,465,305   2,725,034 
Severance and termination  5,747   36,436   164,431   128,057 
         
   1,675,920   2,041,944   5,715,041   5,896,653 
         
Income (loss) before finance income 637,797   35,725   1,230,500   (224,220)
         
Finance income  38,540   921   58,701   1,359 
         
Income tax expense  (2,227)  (16,799)  (6,477)  (46,464)
         
Net income (loss) $674,110  $19,847  $1,282,724  $(269,325)
         
         
Other comprehensive earnings        
Items that may be reclassified subsequently to net income (loss):    
         
Foreign exchange gain on foreign operations 
  60,197
   
  97,922
   
  10,351
   
70,473
 
         
Comprehensive income (loss) $734,307  $117,769  $1,293,075  $(198,852)
         
Net income (loss) per share – basic and diluted$0.07  $0.00  $0.14  $(0.03)
 
 


Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity

(Prepared in Canadian Dollars)
(Unaudited)           

 Number of
Common
Shares
  Share
Capital
   Accumulated Other
Comprehensive
Income

   Contributed
Surplus
  Deficit      Total
Shareholders’
Equity
       
Balance – July 31, 20168,984,704   $60,291,515 $640,232  $9,126,948    $(64,481,187) $5,577,508 
       
Net loss-  -  -   -   (289,172)  (289,172)
Translation of foreign operations-  -  (27,449)  -   -   (27,449)
Compensation units & stock options exercised3,491  18,368   -   (11,386)   -   6,982 
Deferred share units issued-  -  -   200,000   -   200,000 
Stock based compensation-  -  -   75,566   -   75,566 
       
Balance – January 31, 20178,988,195  60,309,883  612,783   9,391,128   (64,770,359)  5,543,435 
       
Balance - July 31, 20179,069,983  60,562,286  591,752   9,526,341   (64,896,501)  5,783,878 
       
Net income-  -  -   -   608,614   608,614 
Translation of foreign operations-  -  (49,846)  -   -   (49,846)
Compensation units & stock options exercised27,163   89,132    -     (31,051)    -    58,081 
Deferred share units issued-  -  -   200,000   -   200,000 
Stock based compensation-  -  -   148,398   -   148,398 
       
Balance – January 31, 20189,097,146 $60,651,418 $541,906  $9,843,688  $(64,287,887) $6,749,125 
 
 


Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Cash Flows
For the three and nine months ended April 30, 2018 and 2017

(Prepared in Canadian Dollars)
(unaudited)

 Three months ended
April 30
 Nine months ended
April 30
  2018  2017 2018  2017
Cash provided by (used in)       
        
Operating activities       
Net income (loss)$674,110  $19,847  $1,282,724  $(269,325)
Items not affecting cash       
Stock-based compensation 78,627   67,740   427,025   419,361 
Amortization 9,220   25,004   167,681   74,889 
Deferred Rent (9,400)  -   150,445   - 
Accretion on rebate provision -   2,153   -   6,460 
Loss on disposal of equipment 868   -   868   1,012 
Long term receivables 21,963   (26,517)  (13,322)  (79,551)
Changes in non-cash working capital 67,660   153,229   (717,056)  (146,393)
        
Net cash provided by operating activities 843,048   241,456   1,298,365   6,453 
        
Financing activities       
Proceeds on exercise of compensation units & stock options  -   5,067    58,081   12,049 
Finance lease payments (5,696)  -   (24,371)  - 
        
Net cash provided by (used in) financing activities (5,696)  5,067     33,710   12,049 
        
Investing Activities       
Acquisition of property and equipment (11,591)  (548)  (29,300)  (2,888)
        
Net cash used in investing activities (11,591)  (548)  (29,300)  (2,888)
        
   
Effect of exchange rate changes on cash and cash
   equivalents held in foreign currency
 60,198    97,822     10,348   70,472 
        
Cash inflow 885,959   343,797   1,313,123   86,086 
        
Cash, beginning of period 6,675,340   5,574,766   6,248,176   5,621,835 
        
Cash, end of period$7,561,299  $5,918,563  $7,561,299  $5,707,921 

Primary Logo


[ Back To TMCnet.com's Homepage ]









Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2018 Technology Marketing Corporation. All rights reserved | Privacy Policy