MARKHAM, ONTARIO — (Marketwired) — 04/11/13 — 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, 2012. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”).
“We have started to see a resurgence in business activity in the global market for the computer products and services after a quiet second half in 2012. We are now seeing increased market demand for digital recording solutions that address the necessity to manage large volumes of digital data,” said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. “We believe that VIQ-s Infinit suite directly addresses governments- imperative to decrease operational costs and increase efficiencies across the justice system by offering a solution that provides secure remote processing control and seamless integration with third-party digital video and content management providers.”
Annual Results
Revenue was $15.8 million for the year ended December 31, 2012 as compared to $15.3 million for the previous year, representing an increase of 4%. Gross profit for 2012 was $6.3 million as compared to $6.5 million in 2011, representing a decrease of 2%. Gross profit expressed as a percentage of revenues was 40% in 2012 as compared to 42% in 2011. Net loss was $246,445 for the year or $0.00 per share as compared to a net income of $75,094 or $0.00 per share for the previous year. EBITDA(1) was $157,750 for the year ended December 31, 2012 as compared to an EBITDA $487,309 for the same period in 2011. Cash flow used in operations was $347,911 for the year ended December 31, 2012 as compared to a cash inflow of $614,033 for the same period in 2011.
Fourth Quarter Results
Revenues increased from $3.4 million in the fourth quarter of 2011 to $4.2 million in the fourth quarter of 2012 or 24% due to an increase in business activity for both our computer products and services and transcription businesses. Gross margin for the quarter was 40%, up from 35% for the same period in 2011 primarily due to the improved margins from our Spark and Cannon division. Selling and administrative expenses increased from $1.4 million for the fourth quarter of 2011 to $1.5 million for the fourth quarter of 2012 due to increased business activity in the quarter. EBITDA for the fourth quarter ended December 31, 2012 was $105,902 as compared to an EBITDA loss of $424,673 for the same period in 2011 due to stronger performance by both of our business units. Net loss was $89,652 for the three month period ended December 31, 2012 as compared to $528,280 for the three month period ended December 31, 2011. Cash used in operations was $299,494 for the fourth quarter of 2012 as compared to a cash inflow of $69,013 for the same period in 2011 as we invested in working capital in support of higher revenue in the fourth quarter of 2012.
2012 Financial Highlights
Note
1. 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- 2012 Management-s Discussion and Analysis for a reconciliation and definition of non-IFRS measures.
Additional Information
Detailed financial information and Management-s Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2012 will be posted on VIQ Solution-s website (under Investor Relations) at and on SEDAR-s website at . 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, 2012, 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 forward-looking statements.
Contacts:
VIQ Solutions Inc.
David Outhwaite
President & CEO
(905) 948-8266 ext. 250
VIQ Solutions Inc.
Karen Hersh
Chief Financial Officer
(905) 948-8266 ext. 240
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