CALGARY, ALBERTA -- (Marketwired) -- 05/23/13 -- Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE: ZED) "We kicked off 2013 with year over year revenue growth of 6% in, what continues to be, a tough market, led by our artificial lift and data management solutions. I am particularly pleased to report that, after complying with all US regulatory requirements, Q1 marks the first period with meaningful revenue from artificial lift in our US market. Our EBITDA growth of 3% was lower than our revenue growth having been impacted by an increased investment in both the US and Canada for sales and service capability to support continued growth of our artificial lift business as well as charges related to reorganization within our product management group," says Matthew Heffernan, President and CEO of Zedi. "We are pleased overall with our Q1 results and remain cautiously optimistic that we will continue to perform well, relative to our sector, in the upcoming quarters." The Q1 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.
Highlights of the Q1 2013 results include:
-- Revenues of $27,904,000, a 6% increase over $26,281,000 in Q1 2012.-- EBITDA(1) was $4,312,000, a 3% increase over $4,168,000 reported in Q1 2012.-- Prior to working capital changes, Zedi's cash flow from operating activities was $4,540,000, up 4% from Q1 2012.-- Profit of $1,477,000, which was consistent with the prior year after having been impacted by additional and one-time expenses noted above.-- Recurring revenue(1) made up 57% of total revenue in the period and covered 204% of operations expenses and 169% of total cash expenditures.-- Zedi's balance sheet remains strong, with working capital of $16,618,000 at the end of Q1 2013.
Zedi Inc. (TSX VENTURE: ZED) helps the world's oil and gas producers be more productive, more profitable, and more sustainable through technology backed by expert consultation and services. Our 60 years of continuous operations in North America and recognition as one of the industry's best workplaces, sets us apart in the production operations landscape. With our unique combination of award-winning automation, data management, and field and professional services, we offer solutions to our customers' challenges and help them realize their production potential.
(1) EBITDA and recurring revenue are non-IFRS measures. EBITDA is earnings before interest, taxes, depreciation and amortization and is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. Recurring revenue is determined by the Company and compared to both operations and total cash expenditures as significant indicators of performance and sustainability. See section 9 of the Management Discussion and Analysis for further detail on both of these metrics.
Cautionary Statement Regarding Forward-Looking Information
Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's financial performance, cash flow, growth expectations, diversification and acquisition activity, strategies, assumptions regarding potential customer and market activities, recurring revenue metrics and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.