Gross Margin
Gross margin percentage improvement for the quarter was driven by a favourable product mix and the exit from and winding down of the theft recovery vertical and Brazil operations, both yielding historically low margins.
Operating Expenses
Operating expenses for continuing operations excluding depreciation and amortization, share-based payments and non-recurring items, decreased by 8% over the prior year three month period. This decrease was the direct result of cost management efforts to reduce staff levels, administrative overhead and discretionary spending.
Cash and Working Capital
As at March 31, 2013, the Company's unrestricted cash position amounted to $21.1 million compared with $4.3 million at December 31, 2012. In addition, the Company has $2.1 million in restricted cash related to the holdback from the NextBus transaction and $1.0 million USD of restricted cash used to secure a bonding facility with a US client.
As at March 31, 2013, the Company had net working capital of $26.3 million, compared with $9.6 million at December 31, 2012. As at May 9, 2013, Webtech Wireless had 105,457,078 common shares outstanding.
Adjusted EBITDA(1) from continuing operations
The Adjusted EBITDA from continuing operations was $0.5 million in Q1 2013 compared to $nil in Q1 2012.
Non-GAAP Financial Measures
In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.
Results on a non-GAAP EBITDA basis are determined as follows:
-------------------------------------------------------------------------------------------------------------------------------------------------------- Three months ended -------------------------- March 31, March 31,('000 of Cdn $) 2013 2012----------------------------------------------------------------------------Net loss from continuing operations $ (18) $ (1,004)Add (deduct) Finance (income) expense (14) 22 Income tax expense 7 - Depreciation and amortization 134 525 Share-based payments 5 118 Foreign exchange (gain) loss (170) 21 Litigation settlement and other one-time costs 539 144 Work force realignment - 139----------------------------------------------------------------------------Adjusted EBITDA (1)from continuing operations $ 483 $ (35)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Adjusted EBITDA is not defined under IFRS. Adjusted EBITDA is defined by the Company as earnings (loss) before interest, taxes, depreciation, amortization, share-based payments, foreign exchange (gain) loss on operations, restructuring charges, and one-time expenses.Financial Statements and Management Discussion & Analysis
The Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2013 and the related Management Discussion & Analysis for the period has been filed on SEDAR at www.sedar.com, and also on the Company's website at www.webtechwireless.com.
Notice of Conference Call
Webtech Wireless will hold a conference call today, May 10, 2013, at 11:00 am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Andrew Morden, Chief Financial Officer to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.340.2218 or +1.866.226.1793. A taped replay of the conference call will be archived on the Company's corporate website at: www.webtechwireless.com.
About Webtech Wireless®
Webtech Wireless (TSX: WEW) is a leader in providing fleet management telematics, GPS and automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs. Our end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. Managers trust us to ensure people are accountable and vehicles are visible. Through the cloud, in the office, or straight to mobile devices, we deliver Fleet Intelligence Anywhere™. Our products are InterFleet®, for government winter maintenance, public works and waste management fleets; and Quadrant®, for commercial fleet operations and compliance (HOS, EOBR). Please visit www.webtechwireless.com.
All amounts in Canadian dollars (CAD$) unless otherwise noted.
Trademarks are the property of their owners.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Webtech Wireless Inc. - Investor Relations
Andrew Morden
Chief Financial Officer
+1 604.434.7337
investors@webtechwireless.com
Webtech Wireless Inc. - Press and Media
David Greer
Vice President Marketing
+1 604.628.5194
press@webtechwireless.com
www.webtechwireless.com
