MARKHAM, ONTARIO — (Marketwired) — 08/19/13 — 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 six month periods ended June 30, 2013. Results are reported in Canadian dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”).
“During the quarter, we successfully implemented significant cost efficiencies in our wholly-owned subsidiary Spark & Cannon by removing certain non-essential support infrastructure,” said David Outhwaite, President and Chief Executive Officer of VIQ Solutions. “These changes will allow us to reduce our overhead expenses significantly while allowing us to continue to execute the strategic initiatives currently underway as we strive for continued growth.”
Financial Highlights for the Quarter
Business Highlights for the Quarter
Non-IFRS Measures
Adjusted EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to adjusted EBITDA presented by other companies. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and restructuring expenses. 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. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.
Additional Information
The unaudited second quarter 2013 condensed consolidated interim financial statements and results of operations and Management-s Discussion and Analysis of Results and Financial Condition for the three and six month periods ended June 30, 2013 will be posted on VIQ Solutions- 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 unaudited second quarter 2013 condensed consolidated interim financial statements and 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
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management-s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, expected future overhead expense reductions, anticipated declines in selling and administrative expenses resulting in future savings to Spark & Cannon of approximately AUS$900,000 annually and estimated revenue to Spark & Cannon from the newly awarded Victoria Police contract in the amount of AUS $8.9 million over the five year term of the contract.
Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although VIQ Solutions believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because VIQ Solutions can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the above described selling and administrative expenses reductions going forward, the workflow provided by the Victoria Police during the term of the contract to Spark & Cannon will be consistent (and not less) with past workflows and the contract with Victoria Police will continue through its initial term and be extended (without material amendment) for the two consecutive renewal periods. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.
Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ Solutions and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: unanticipated increases in selling and administrative expenses such that the reductions in expenses differ from those described herein, the Victoria Police contract terminates prior to its initial term or is not renewed as described herein, the workflows provided by Victoria Police are materially lower than previously experienced; and the revenues attributable to Spark & Cannon from this contract differ from those described herein. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The forward looking statements or information contained in this news release are made as of the date hereof and VIQ Solutions undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.
This press release, in particular the information in respect of anticipated revenues of Spark & Cannon from the Victoria Police contract and the future savings to be realized by Spark & Cannon from the anticipated decline in selling and administrative expenses, may contain Future Oriented Financial Information (“FOFI”) within the meaning of applicable securities laws. The FOFI has been prepared by management of the Corporation to provide an outlook of the Corporation-s activities and results. The FOFI has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements”. The actual results of operations of the Corporation and the resulting financial results may vary from the amounts set forth herein, and such variation may be material. The Corporation and its management believe that the FOFI has been prepared on a reasonable basis, reflecting the best estimates and judgments, and represent, to the best of management-s knowledge and opinion.
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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