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Posera-HDX Announces Financial Results for the Third Quarter of 2012
Nov 14, 2012 (03:11 PM EST)
TORONTO, Nov. 14, 2012 /CNW/ - Posera-HDX Ltd. ("Posera-HDX") (the Company) announced today its financial results for the three and nine-months ended September 30th, 2012. Posera-HDX is listed on the TSX under the symbol "HDX".
Paul Howell, Chief Executive Officer, reports:
While fourth quarter business activity has improved drastically, the third quarter of 2012 was a difficult period. There were fewer new restaurants opened because of the worldwide economy. There were also fewer restaurant renovations and technology refreshes. The lack of available third party lease funding for clients resulted in fewer restaurants being approved for technology financing, the reseller community experienced lower than expected software sales and a major vendor to Posera-HDX had significant inventory availability issues. These factors have resulted in slower than expected sales activity in the third quarter of 2012. Sales and service revenues for the three-months ended September 30, 2012 were $4,032,574 representing a decrease of 11.2% from $4,541,336 from the three-months ended September 30, 2011.
Excluding the Company's investment in the payment processing division, one-time expenses and non-cash costs associated with the amortization of acquired intangible assets, property plant and equipment and stock-based compensation, the Company would have recognized normalized EBITDA profit of $140,401 for the three-months ended September 30, 2012.
The Company experienced a normalized EBITDA loss of ($32,206) for the three-months ended September 30, 2012 of which, $172,607 is due to the ongoing expenses related to the Company's investment strategy for our payment processing division. Additionally, the Company incurred $107,964 of one-time expenditures during the three-months ended September 30, 2012.
Company-wide non-cash amortization of intangible assets and property plant and equipment was $365,470 and stock-based compensation was $87,239, for the three-months ended September 30, 2012. HDX Payment Processing Ltd. ("HDXPP") (the acquired Cash N Go Ltd. payments processing division) experienced a loss of $194,551 and Posera-HDX Scheduler Inc. (the acquired assets of 2020 Hyperscheduler / Hypervison) experienced a loss of $38,959. The Company expects to continue to make significant investments in these divisions into the foreseeable future and will strive to increase revenue for these divisions and products as quickly as possible.
Posera-HDX Ltd. continues to invest and focus on developing significant new revenue opportunities that are complimentary to the Company's current operational foundation and synergistic with the Company's intellectual property assets. New software as a service ("SaaS") products and business modules with recurring revenue are under construction. This will allow the Company to deliver an enhanced range of services to the Company's current client base and will bolster the Company's ability to attract new customers.
Following the acquisition of HDXPP in December 2011, and following the announcement on June 14th, 2012 that the Company has been approved for membership to the Interac Association as an Indirect Connector to perform the functions of an Acquirer in the Shared Cash Dispensing ("SCD") Service, Posera-HDX continues to make significant investments to enhance systems, facilities, and operating procedures in order to secure the necessary approvals to operate a payment processing switch and an ATM transaction processing switch. Through HDXPP, Posera - HDX owns and operates a Postillion payment switch developed by S1 Corporation. In addition, to the provision of SCD services, Posera-HDX plans to expand the payment switch to facilitate the processing of Point-of-Sale transactions for its merchant client base. HDXPP has retained team members and contractors with the appropriate industry expertise to allow the Company to further develop the payment processing division with an eye toward monetizing the Company's investment in this division as quickly as possible. To take advantage of the convergence in retail technologies currently underway, the Company continues to pursue merger and acquisition opportunities with complimentary organizations although none are specifically named at this time.
Highlights and Summary - Three-months ended September 30, 2012 (Unaudited)
About Posera-HDX Limited (the "Company)
The Company 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.
The Company's leading edge technology also includes prepaid stored value payments solutions, customer self-serve kiosks and "line buster" mobile point of sale 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.
Through its corporate offices in Toronto, London, Brantford, Seattle Washington, Montreal, Paris, Singapore, and Glasgow, Posera-HDX has a direct sales and service team.
The company has also built a network of approximately 112 value added resale partner companies in 25 countries. There are approximately 1,100 representatives selling, supporting & installing the Posera-HDX Maitre 'D software worldwide and the solution has been deployed in over 20,000 locations in eight different languages around the world.
Posera-HDX customers include Tim Hortons, Wendy's, Arby's, Quick (France), Popeye's, East Side Mario's, O'briens, St-Hubert, Pita Pit, Popeye's, Dunkin' Donuts, Pizza Delight, Baton Rouge, Scores, Hooters, Casey's, Supermac's, HDOS, KFC, Extreme Pita, Pizza Hut, among many others.
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 the Company'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 of Posera - HDX Inc. filed on March 29th, 2012 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.