During FY2012 we grew our customer base and support revenues; however, this growth was offset by a 66% decrease in integration revenues from $583K FY2011 to $197K in FY2012. We expect a further decline in integration revenues in FY2013. The decrease in integration revenues directly impacted our EBITDA and Net Income; however, we started to recover in Q3 and Q4 of FY2012 where we posted $239K in EBITDA and $34K in Net Income and $257K in EBITDA and $33K in EBITDA in each of the respective quarters. 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 announces the following changes in the Company's Board of Directors effective immediately:
-- Michael Podovilnikoff, an existing Board Director, will take over the role of Chairman of the Board of Directors of Quorum. Mr. Podovilnikoff has served on the board of directors for TR Labs, on the Conference Board of Canada Human Resource Committee, and was a member of multiple national and international committees and forums within the telecommunications discipline. He worked in the high tech industry for more than 35 years in various executive positions. Mr. Podovilnikoff currently consults on various business-related matters.-- John Carmichael, existing Chairman of the Board of Directors, will be stepping down as Chairman and will be continuing with the Board as a Director. Mr. Carmichael is the current Member of Parliament of Don Valley West. He was previously the Dealer Principal of City Buick Chevrolet Cadillac GMC Ltd. in Toronto, Ontario, one of Canada's largest Buick Chevrolet Cadillac dealerships. He has been involved at the most senior level on many projects with General Motors and is a past Chairman of the Canadian Automobile Dealers' Association (CADA)
Quorum has filed its 2012 consolidated financial statements and notes thereto as at and for the period ended December 31, 2012 and accompanying management's discussion and analysis in accordance with National Instrument 51-102 - Continuous Disclosure Obligations adopted by the Canadian securities regulatory authorities. Additional information about Quorum will be available on Quorum's SEDAR profile at www.sedar.com and Quorum's website at www.QuorumDMS.com.
Year ended Year ended Year ended December 31, 2012 December 31, 2011 December 31, 2010----------------------------------------------------------------------------Gross revenue $ 7,566,580 $ 7,727,502 $ 7,695,773Direct costs 3,453,317 3,280,810 3,303,450Margin after direct costs 4,113,263 4,446,692 4,392,323Earnings before interest, taxes, depreciation and amortization (EBITDA) 847,906 1,307,465 1,389,639Income before deferred income tax 188,588 611,124 422,511Net income (loss) (65,237) 331,147 166,555Comprehensive income (loss) (118,488) 371,523 3,177Basic net income (loss) per share ($0.002) $0.008 $0.004Fully diluted net income (loss) per share ($0.002) $0.008 $0.004Weighted average number of common shares Basic 39,298,438 39,298,438 39,298,438 Diluted 39,298,438 39,298,438 42,634,919XSellerator installations - in the period 20 22 33XSellerator active dealership rooftops 270 254 240----------------------------------------------------------------------------
Quorum is a North American company focused on developing, marketing, implementing and supporting its XSellerator product for GM, Isuzu, Chrysler, Hyundai, KIA, Nissan, Subaru, NAPA and Bumper to Bumper dealerships. XSellerator is a dealership and customer management software product that automates, integrates and streamlines every process across departments in a dealership. One of the select North American suppliers under General Motors' IDMS program, Quorum is the second largest DMS provider for GM's Canadian dealerships with 25% of the market. Quorum is a Microsoft Partner in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information please go to www.QuorumDMS.com.
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 December 31, 2012. Any forward-looking information is made as of the date hereof and, except as required by law, Quorum assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Quorum Information Technologies Inc.
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