Operational results highlights for FY2013 are as follows:
-- Key customer metrics are as follows: -- Customer Satisfaction Index ("CSI") semi-annual survey in Q3 FY2013 showed an average of 87% of dealer principals as "satisfied" or "very satisfied" and an average of 75% of end users as "satisfied" or "very satisfied" overall. The remaining 13% of dealer principals reported "somewhat satisfied" and 3/4 of the remaining 25% of end users reported "somewhat satisfied". The results are up from our survey in Q1 FY2013 which reported "satisfied" or "very satisfied" comparative numbers of 75% for dealer principals and 73% for end users. -- 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 FY2013 we released two new versions of XSellerator to all of our dealership customers. The following two ground-breaking product features were included in these versions: -- "Communicator," which transforms how dealership staff communicate with their customers and each other. Communicator features text, email and instant message functionality that is integrated into the XSellerator workflow. The number of email and texts that Communicator handles, for the 20% of our customers that utilize the functionality, grew from 7,487 messages in
September 2013to 48,326 in December 2013. This explosive growth coincided with the release of V4.7.6 which had a number of changes that allowed us to scale the rollout of Communicator to our customers. In Q1 and Q2 FY2014 we will focus on a broader rollout of Communicator to more of our customers. -- Make More Money ("M3") initiative which focuses on ten key XSellerator processes that drive incremental revenue into our dealership customers' operations. During our pilot process, in which we partnered with 11 of our dealership customers, we were able to generate an increase in monthly service and parts revenue of over $50,000per dealership. In Q1 and Q2 FY2014, we will focus on training more of our dealerships on the M3 processes. -- 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 FY2013 are as follows:
-- Quorum's key to growing profits is having a critical mass of installed dealerships that supply a recurring revenue stream, along with a well- managed fixed and variable cost structure. Sales increased by 6% to
$7,987Kin FY2013 from $7,567Kin FY2012 and margin after direct costs increased to $4,487Kin FY2013, from $4,113Kin FY2012, a 9% increase. The increase in sales is due to: -- An increase of $450Kin recurring support revenue as a result of having more active dealership rooftops at the end of FY2013 compared to the end of FY2012; -- A decrease in integration revenue of $126Kbecause Quorum does not receive paid integration work under the new GM DTAP program; -- A decrease of $262Kin net new revenue which was a result of completing less installations in FY2013 as compared to FY2012; and -- An increase of $358Kin transitions revenue from converting our customers to the new Microsoft Windows and SQL Server 2012 products. -- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $1,255Kin FY2013 from $848Kin FY2012. Income before deferred income tax expense increased to $471Kfor FY2013 compared to $189Kin FY2012. The increases in both EBITDA and income before deferred income tax expense are largely due to: -- $374Kincrease in margin after direct costs in FY2013 compared to FY2012; -- $40Kdecrease in general and administrative expense in FY2013 compared to FY2012; and -- $9Kdecrease in sales and marketing expense in FY2013 compared to FY2012. -- Net income for FY2013 was $295Kor $0.0075per share, compared to net loss of $65Kor $0.0017per share for FY2012. This is a $360Kincrease from FY2012 which is due to the above-noted factors. -- Comprehensive income increased to $409Kin FY2013 compared with a loss of $118Kin FY2012 due to a foreign exchange gain in FY2013 of $115Kversus a foreign exchange loss in FY2012 of $53K. -- Working capital increased to $1,454Kat December 31, 2013compared with $1,004Kat December 31, 2012. Cash increased to $812Kat the end of December 2013compared with $425Kat the end of December 2012.
2013 was a strong year with revenues up 6% to
My sincere appreciation is extended to Quorum's Board of Directors and to our employees and consultants who have been diligent and dedicated in their support of the Corporation's goals and objectives. My thanks also extend to our investors for their long-term and continued support of Quorum.
Quorum has filed its 2013 consolidated financial statements and notes thereto as at and for the period ended
Year ended Year ended Year ended December 31, December 31, December 31, 2013 2012 2011 ---------------------------------------------------------------------------- Gross revenue
$ 7,986,772 $ 7,566,580 $ 7,727,502Direct costs 3,499,641 3,453,317 3,280,810 Margin after direct costs 4,487,131 4,113,263 4,446,692 Earnings before interest, taxes, depreciation and amortization (EBITDA) 1,254,890 847,906 1,307,465 Income before deferred income tax 470,924 188,588 611,124 Net income (loss) 294,686 (65,237) 331,147 Comprehensive income (loss) 409,402 (118,488) 371,523 Basic net income (loss) per share $ 0.008 $ (0.002) $ 0.008Fully diluted net income (loss) per share $ 0.008 $ (0.002) $ 0.008Weighted average number of common shares Basic 39,298,438 39,298,438 39,298,438 Diluted 39,298,438 39,298,438 39,298,438
Quorum is a North American company focused on developing, marketing, implementing and supporting its XSellerator product for GM, Chrysler,
This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to results of operations, plans and objectives, projected costs and business strategy. Quorum believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the risks identified in Quorum's Management's Discussion and Analysis for the year ended
FOR FURTHER INFORMATION PLEASE CONTACT:
Quorum Information Technologies Inc.Maury Marks 403-777-0036 ext 104 MarksM@QuorumDMS.com Source: Quorum Information Technologies Inc.