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Posera-HDX Announces Financial Results for the Second Quarter of 2013
Aug 14, 2013 (01:08 PM EDT)
TORONTO, Aug. 14, 2013 /CNW/ - Posera-HDX Ltd. (TSX: HDX) (the "Company" or "Posera-HDX") announced today its financial results for the three and six-months ended June 30th, 2013. Posera-HDX is listed on the TSX under the symbol "HDX".
Paul Howell, Chief Executive Officer, reports:
The Company's strong performance continued in the second quarter, with revenue of $4,305,530 for the three-months ended June 30, 2013, an increase of $59,570 (1.4%) from $4,245,960 for the three-months ended June 30, 2012.
The Company continues to pursue strategic acquisitions within the Point-of-Sale ("POS") and Payment Processing industries and has recently announced a letter-of-intent to acquire Zomaron Inc., operating as Zomaron Merchant Services ("Zomaron"), which the Company anticipates will close during the fiscal year 2013.
Founded in 2008, Zomaron provides debit and credit card processing solutions to Canadian merchants nationwide. Based in London, Ontario, Zomaron has offices in Edmonton, AB, Toronto, ON, and Montreal, QC. Through its nation-wide network of sales representatives and strategic partnerships, Zomaron has experienced rapid growth, doubling its sales annually. Zomaron's exponential growth led it to be ranked NO.15 on PROFIT magazine's 13th annual PROFIT HOT 50 ranking released in its October, 2012 issue. Zomaron's solutions and services can also be marketed and deployed in the United States.
In keeping with the Company's long term business plan, Posera-HDX continues to make significant investments to enhance systems, facilities, and operating procedures in order to secure and maintain the necessary approvals to operate a payment processing switch and an ATM transaction processing switch. Team members and contractors with the appropriate industry expertise have been retained to allow the Company to develop the payment processing division with an eye toward monetizing the Company's investment in this division as quickly as possible.
The Company has experienced a Normalized EBITDA profit (loss) for the three-months ended June 30, 2013 of ($117,695), a decrease of $118,452 from a Normalized EBITDA profit (loss) of $757 for the three-months ended June 30, 2012. The Company incurred amortization of intangible assets property plant and equipment of $286,562 and $32,537 (2012- $320,407 and $49,049) for the three-months ended June 30, 2013 and 2012 respectively. HDX Payment Processing Ltd. (formerly Cash N Go Ltd. a payments processing company) experienced an EBITDA loss for the three-months ended June 30, 2013 of $153,014, an increase of $41,170 from an EBITDA loss of $111,844 for the three-months ended June 30, 2012. The Company expects to continue to make significant investments in this division into the foreseeable future and will strive to increase revenue for this division as quickly as possible.
Quarterly Highlights and Summary
Non-IFRS Reporting Measures: Management reports on certain Non-IFRS ("International Financial Reporting Standards") measures to evaluate performance of the Company. Non-IFRS measures are also used to determine compliance with debt covenants and manage the capital structure. Because non-IFRS measures do not generally have a standardized meaning, securities regulations require that non-IFRS measures be clearly defined and qualified, and reconciled with their nearest IFRS measure. The Canadian Institute of Chartered Accountants (CICA) Canadian Performance Reporting Board has issued guidelines that define standardized earnings before interest, taxes, depreciation and amortization (EBITDA). For definitions of Non-IFRS measures, refer to the Company's quarterly management discussion and analysis for the three-months ended June 30, 2013.
Additional information on Posera- HDX's second quarter 2013 financial results will be available in the financial reports filed by the Company with Sedar at www.sedar.com and posted to the Investor Relations section of the Company's website at www.hdxsolutions.com.
About the Company
Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The Company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.
Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile POS terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
Posera-HDX Limited develops, deploys, and supports a restaurant POS software known as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 100 value added reseller partners in 25 countries with approximately 550 representatives selling, supporting & installing its software. Posera-HDX employs approximately 135 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Posera-HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 28th, 2013 with the regulatory authorities. Posera-HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.