Quisitive Technology Solutions Inc. Reports Fiscal 2018 Fourth Quarter and Annual Financial Results 20% Quarter on Quarter Growth

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

(TheNewswire)



 Not for distribution to United States newswire services or for release publication,

distribution or dissemination directly, or indirectly, in whole or in part, in or into the United States.

Toronto, / TheNewswire / April 30, 2019, /CNW/ – Quisitive Technology Solutions Inc. (Quisitive or the “Corporation“) (TSXV: QUIS), a premier Microsoft solutions provider, announced today that it is finished on a strong run rate for the year end and seen 20.7% quarterly revenue growth in the fourth quarter.

“Quisitive took advantage of our strength of pipeline coming out of Q3 and drove engagement across 35 enterprise clients to deliver fourth quarter profitability that exceeded our target,” said Mike Reinhart, CEO. “That momentum allowed us to close the year strong demonstrating our focused execution against our primary Go-To-Market strategies.”

 

FY2018 Financial Results:

  • Revenue for the year ended December 31, 2018 was $12,606,724. Total revenue is comprised of professional services revenues from consulting, implementation and training services related to our Microsoft service offering.  Included in the revenue is $6,451,867 from repeat customers. There was $Nil as comparison in prior periods.  

    Gross margin for the year ending December 31, 2018 was $4,673,424 or 37.1% There is no comparable gross margin for year ending December 31, 2017.

    Net loss for the year ended December 31, 2018 was $6,610,200 which represents a $0.09 loss per share.  Included in the loss was the following:

    • During the year, the company incurred a total of $2,182,204 (non-cash) associated with the Qualifying Transaction, being the excess of fair value of the consideration paid to obtain the listing over the net assets.

      Amortization expense for the year ended December 31, 2018 was $1,488,101.

      Stock based compensation for the year ended December 31, 2018 was $403,864.

      The Corporation also incurred acquisition related expense in the amount of $327,463.

    Adjusted EBITDA loss for the year ending December 31, 2018 was ($952,554) or (7.6%) of revenue.

 

Q4FY18 Financial Results:

  • Revenue for the quarter ending December 31, 2018 was $3,902,545 – a 20.7% revenue growth quarter over quarter.  There was $Nil as comparison in prior periods.  

    • We completed 30 Azure Assessments in the quarter.

      From those assessments, we secured 22 new projects of Azure Migration, Modern BI, Azure DevOp and Office 365 implementations;

    Gross margin for quarter ended December 31, 2018 was $1,584,376 or 40.6%. The margin is healthier than prior quarter at 33.3%. There was $Nil as comparison in prior periods.  

    Net loss for the quarter ended December 31, 2018 was $1,664,565 which represents a $0.02 loss per share. Included in the loss was the following:

    • Recovery of $439,100 in deferred income tax;

      Reduction of Listing expense of $210,461 due to reversals of accrued charges that differed from actuals;

      Amortization expense for the quarter ended December 31, 2018 was $1,460,961;

      Stock based compensation for the year ended December 31, 2018 was $203,832;

      The Corporation also incurred acquisition related expense in the amounts of $60,852; and

      Adjusted EBITDA loss for the quarter ended December 31, 2018 was ($202,307) of (2.2%) of revenue.

  --------------------------------------------------------------- |  |  |Quarter Ended | |-------------------------------------------------------------| |  | |December |  |December|  | | | |31 | |31, 2017| | | | |2018 | | | | |-------------------------------------------------------------| |Revenue |$|3,902,545 |$ |- |  | |-------------------------------------------------------------| |Cost of revenue | |2,318,169 |  |- |  | |-------------------------------------------------------------| |  Gross margin | |1,584,376 |  |- |  | |-------------------------------------------------------------| |  Margin% | |41% |  |  |  | |-------------------------------------------------------------| |Operating expenses | |  |  |  |  | |-------------------------------------------------------------| |Sales and marketing expense | |907,532 |  |- |  | |-------------------------------------------------------------| |General and administrative | |877,149 |  |- |  | |-------------------------------------------------------------| |Listing expense | |(210,461) |  |- |  | |-------------------------------------------------------------| |Amortization | |1,460,961 |  |- |  | |-------------------------------------------------------------| |Interest expense | |355,465 |  |- |  | |-------------------------------------------------------------| |Stock based compensation | |203,832 |  |- |  | |-------------------------------------------------------------| |Acquisition related expense | |60,852 |  |- |  | |-------------------------------------------------------------| |Depreciation | |2,324 |  |- |  | |-------------------------------------------------------------| |  | |  |  |  |  | |-------------------------------------------------------------| |Loss before income taxes |$|(2,073,278)|$ |- |  | |-------------------------------------------------------------| |    Current income tax expense| |30,387 |  |- |  | |-------------------------------------------------------------| |    Deferred | |(439,100) |  |- |  | |income tax | | | | | | |recovery | | | | | | |-------------------------------------------------------------| |Net loss |$|(1,664,565)|  |- | | ---------------------------------------------------------------  

The Company’s audited financial statements for the year ended December 31, 2018 and related management’s discussion and analysis can be found on the Company’s website and at www.sedar.ca.  All figures are expressed in United States dollars unless otherwise stated.

 

Conference Call Access

To access the conference call by phone, please dial the following numbers.

Canada/United States: 1-800-319-4610

Toronto Toll: 1-416-915-3239

We will start the call promptly at 8:30am ET May 1, 2019.  Please dial in 10 minutes prior to the scheduled start time and ask to join the Quisitive Technology Solutions, Inc. call.

We encourage you to access the presentation material in the Investors section of Quisitive’s website at https://quisitive.com/investor-relations/.

About Quisitive:

Quisitive is a premier Microsoft solutions provider that helps customers navigate the ever-changing technology climate that their business relies upon. With a legacy of innovation and deep technical expertise, Quisitive is empowering the enterprise to harness the Microsoft cloud and emerging technologies such as blockchain, artificial intelligence (AI), machine learning, and the Internet of Things (IoT) through customized solutions and first-party cloud-based products.

Quisitive is uniquely comprised of former Microsoft leaders and technologists who share a deep understanding of market needs and the appropriate application of Microsoft cloud technology. Quisitive serves clients globally with offices in Dallas, TX, Denver, CO and Toronto, Ontario. For more information, visit http://www.Quisitive.com or follow @BeQuisitive.

For further information, please contact:

Mike Reinhart – Chief Executive Officer

mike@reinhart@quisitive.com

Reconciliation of Non-GAAP Financial Measures - Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue

Adjusted EBITDA

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

The term "Adjusted EBITDA" refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes), acquisition-related expenses and listing expense. Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

Management considers these non-operating expenses to be outside the scope of Quisitive' ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

---------------------------------------------------------------------------- |Reconciliation of Adjusted EBITDA loss | |Year ended | |Three months| | | |December 31, | |December 31,| | | |2018 | |2018 | |--------------------------------------------------------------------------| |Net loss for the period |$|  (6,610,200)|$|(1,664,566) | |--------------------------------------------------------------------------| |Adjustments to reconcile to Adjusted EBITDA| |  | |  | |--------------------------------------------------------------------------| |Income tax expense | |38,187 | |30,387 | |--------------------------------------------------------------------------| |Deferred income tax expense | |  | |(439,100) | |--------------------------------------------------------------------------| |Interest expense | |734,544 | |355,465 | |--------------------------------------------------------------------------| |Amortization | |1,488,101 | |1,460,961 | |--------------------------------------------------------------------------| |Depreciation | |94,787 | |2,324 | |--------------------------------------------------------------------------| |Share-based compensation | |403,864 | |203,832 | |--------------------------------------------------------------------------| |Listing expense | |2,570,700 | |(210,461) | |--------------------------------------------------------------------------| |Acquisition related expenses | |327,463 | |60,852 | |--------------------------------------------------------------------------| |Adjusted EBITDA loss | |(952,554) | |(200,307) | |--------------------------------------------------------------------------| |Adjusted EBITDA loss as | |(7.6%) | |(5.1%) | |a percentage of revenue | | | | | ----------------------------------------------------------------------------  

Adjusted EBITDA for the quarter ended December 31, 2018 was a loss of $200,307 or (5.1%). Adjusted EBITDA for the year ended December 31, 2018 was a loss of $952,554 or (7.6%).  

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.

Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, consolidation strategy and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.  Such factors include, among others the limited history of operations, lack of profitability, availability of financing, the need for additional financing and the timing and amount of expenditures, ability to successfully execute on consolidation strategies, the failure to find economically viable acquisition targets, funding for internally developed technology solutions, client retention and attrition, client demands, reliance on key personnel, economic spending in the IT industry and technological changes in the IT industry.  Quisitive Technology Solutions Inc. does not assume the obligation to update any forward-looking statements.

Copyright (c) 2019 TheNewswire - All rights reserved.