CALGARY, ALBERTA -- (Marketwired) -- 04/15/13 -- Quorum Information Technologies Inc. (TSX VENTURE: QIS) ("Quorum" or the "Company") today released its Fiscal Year (FY) 2012 results. Quorum delivers its dealership management system (DMS), XSellerator, and related services to automotive dealerships throughout North America. The Company is both an Integrated Dealership Management System (IDMS) strategic partner with General Motors Corporation (GM) and a strategic partner with Microsoft. Quorum's XSellerator product is broadly promoted to its target dealerships throughout North America by these prominent industry partners. Quorum also supplies its product to Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership customers.
Maury Marks, Quorum's President and CEO made the following remarks about the Company's FY2012 results:
Some of our most significant measurable sales and operational results in FY2012 are as follows:
-- Customer Base - Quorum reached 270 active dealership rooftops at the end of FY2012 after installing 20 dealership rooftops during the year.-- Key customer metrics are as follows: -- Customer Satisfaction Index ("CSI") semi-annual survey in Q2 FY2012 and Q4 FY2012 showed an average of 74% of end users reported "satisfied" or "very satisfied" and an average of 73% of dealer principals reported "satisfied" or "very satisfied". -- Our monthly Support Center CSI survey reported an average of over 95% "very satisfied" with the service received from our support team. -- For our Support services, on average, we now close 73% of all support calls within 30 minutes (up from 60% in 2008, when we first started measuring this statistic) and 87% of all calls within 24 hours (up from 81% in 2008).-- Product - during FY2012 we released V4.7.3 and V4.7.4 of XSellerator to all of our dealership customers. We continued work on two ground breaking product features: -- "Communicator" which transforms how dealership staff communicate with their customers and each other. In Q4 FY2012 we general released "Communicator" and started the full implementation to our customer base. -- "Console" which is a new customizable workspace with a suite of productivity tools to help dealerships improve customer service, increase utilization of XSellerator and track key performance indicators. In Q3 FY2012, the "Console" was setup as a default workspace for every XSellerator user.-- Employees - none of the Company's accomplishments are possible without highly motivated, engaged people. Our sincere thanks to the people that drive Quorum. Every year we measure our staff engagement and we actively work towards improving our job satisfaction and engagement throughout the Company.
Financial Results highlights for FY2012 are as follows:
-- Sales decreased by 2% to $7,567K in FY2012 from $7,728K in FY2011 and margin after direct costs decreased to $4,113K in FY2012, from $4,447K in FY2011, a 7% decrease. The change in sales is due to: -- An increase of $303K in recurring support revenue as a result from having 270 active dealership rooftops at the end of FY2012 versus 254 at the end of FY2011; -- A decrease in integration revenue of $386K due to a decrease in the number of GM integration projects during FY2012; -- A decrease of $78K in net new and transition revenue which was a result of completing 20 rooftop installations in FY2012 as compared to 22 roof top installations in FY2011.-- Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to $848K in FY2012 from $1,307K in FY2011. Income before deferred income tax expense decreased to $189K for FY2012 compared to $611K in FY2011. The decreases in both EBITDA and income before deferred income tax expense are largely due to: -- $333K decrease in margin after direct costs in FY2012 compared to FY2011; -- An increase in staffing levels which increased salaries and benefits (direct and indirect) expense by $418K; and -- Expiration of the wage subsidy and NL loan which resulted in an increase of $115K in net salaries and benefits.-- Net income (loss) decreased to negative $65K for FY2012 compared with $332K in FY2011. This change is consistent with our change in Income before deferred income taxes expense.-- Comprehensive income (loss) decreased to negative $118K in FY2012 compared with $372K in FY2011 due to a foreign exchange loss in FY2012 of $53K versus a foreign exchange gain in FY2011 of $40K.-- Working capital decreased to $1,004K at the end of December 2012 compared with $1,065K at the end of December 2011. Cash increased to $425K at the end of December 2012 compared with $224K at the end of December 2011.