Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for medical industry researchers · Friday, March 29, 2024 · 699,741,787 Articles · 3+ Million Readers

Cortex Business Solutions Announces Q4 and Full Year Fiscal 2018 Financial Results

Cortex Completes Strong Fiscal 2018 with Record Adjusted EBITDA(1) and cash flows from operations

CALGARY, Alberta, Oct. 23, 2018 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (“Cortex”) (TSXV: CBX), a North American network-as-a-service complete document management & e-invoicing solutions provider, today announces its three and twelve months ended July 31, 2018 (“Q4 F2018”) Management’s Discussion and Analysis (“MD&A”) and Consolidated Annual Financial Statements (“F/S”).  The MD&A and F/S are available at www.sedar.com.

“I believe these results are just the beginning of the momentum that we are building at Cortex.  Our team has delivered our strongest results yet in F2018 while remaining focused on helping our customers to deliver their own successful results and savings with our ever-expanding service.  With our most recent acquisition we are able to work with customers on many new levels by adding new product breadth and supply chain value.  I could not be more excited with the trajectory that Cortex is on and look forward to another year of growth and expansion” said Joel Leetzow, President and CEO.

“The strong financial results including revenue which increased organically year over year by 13% and record Adjusted EBITDA of $2.1 million for fiscal 2018 continue to show that Cortex is adding consistent value for its shareholders.” said Jason Baird, VP, Finance & CFO.

“Cortex completed a transformational fiscal year with the recent strategic acquisition of Powervision Software Inc. (“Powervision”) which is estimated to not only increases Cortex’s revenue, Adjusted EBITDA, margins and cash flows, but has also improved the solutions that Cortex can offer our customers as a network-as-a service”

Q4 F2018 and F2018 Financial Highlights

Three months ended July 31, 2018 compared to July 31, 2018

  • Adjusted EBITDA(1)  increased 136% or by $0.2 million to $0.4 million from $0.2 million
  • Cash flow from operating activities increased 32% or by $0.2 million to $0.7 million from $0.5 million
  • Overall revenue increased 5% or by $0.2 million to $3.1 million from $2.9 million
  • Access and usage fees increased 14% or by $0.4 million to $3.0 million from $2.6 million
  • Access fees increased 34% to $2.1 million from $1.6 million
  • Gross profit improved 3% or by $0.1 million to $2.2 million
  • Net income improved by $3.2 million to $3.1 million from a net loss of $0.1 million

Fiscal 2018 compared to Fiscal 2017

  • Adjusted EBITDA(1)  increased 282% or by $1.6 million to $2.2 million from $0.6 million
  • Cash flow from operating activities increased 281% or by $1.5 million to $2.0 million from $0.5 million
  • Overall revenue increased 13% or by $1.4 million to $12.5 million from $11.1 million
  • Access and usage fees increased 16% or by $1.6 million to $11.6 million from $10.0 million
  • Access fees increased 28% to $7.7 million from $6.0 million
  • Gross profit improved 17% or by $1.3 million to $9.2 million from $7.8 million
  • Net income improved by $4.7 million to $4.3 million from a net loss of $0.4 million

Cash Position

The overall cash position of Cortex improved 31% to $8.2 million at July 31, 2018, 2018 from $6.2 million at July 31, 2017 driven predominantly from an increase in net cash provided by operating activities mainly from higher access and usage fees and project management revenues.  The cash position of Cortex provided the flexibility to prudently use $4.7 million in the acquisition of Powervision in September 2018.

(1)  Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-recurring charges and share based payments.  Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers.  This measure assists the Company in evaluating the Company’s operating performance against its expectations and against other entities. Please refer to the Company’s MD&A for the quarter and year ended July 31, 2018 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

Cortex’s management will host a conference call, followed by a question and answer period. 

The details of the conference call are as follows:

Date: Wednesday, October 24th, 2018
Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time) 
Toll-free dial-in number: 1-800-273-9672
International dial-in number: 1-416-340-2216

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex at 403 219-2838.

A replay of the conference call will be available after the call through October 31, 2018.

Toll-free replay number: 1-800-408-3053
Toll replay number: 1-905-694-9451
Replay ID: 7332117#

About Cortex

Cortex is a service-centric, digital transformation solutions provider focused on revolutionizing B2B document exchange. We help businesses save time and money by replacing traditional paper-based manual systems with AP and AR invoice automation. Companies on the Cortex Network are positioned for success with solutions that offer the scalability and flexibility needed to evolve with their unique business needs. Cortex specializes in the development and delivery of integrated electronic document intake and management solutions using flexible connection methods that leverage existing technologies and processes.

Cortex is currently enabling digital transformation in over 11,000 companies in the Oil & Gas, Mining, Manufacturing and Sports & Entertainment industries.  For more information, please visit www.cortex.net.

 

Investor Relations Contacts:

Joel Leetzow Jason Baird
President and CEO VP, Finance & CFO
jleetzow@cortex.net jbaird@cortex.net
403-219-2838 403-219-2838


Neither the 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.

Cortex Business Solutions Inc.
Consolidated Statements of Financial Position
(Prepared in Canadian Dollars)

  July 31
2018
  July 31
2017
Assets      
       
Current Assets      
 Cash and cash equivalents $   8,197,785     $   6,248,176  
 Short-term investments     60,000         60,000  
 Accounts receivable     907,108         1,220,442  
 Prepaid expenses     167,822         180,710  
       
      9,332,715         7,709,328  
       
Long-term receivable     131,785         98,761  
Deposits     32,379         35,061  
Property and equipment     148,479         178,118  
Intangible assets     21,012         30,018  
Deferred tax assets     2,758,000         -  
       
  $   12,424,370     $   8,051,286  
       
Liabilities      
       
Current Liabilities      
 Accounts payable and accrued liabilities $   1,197,295     $   1,834,471  
 Deferred revenue     309,967         423,734  
 Current income tax payable     20,858         9,203  
 Current portion of obligations under finance lease     22,923         -  
       
      1,551,043         2,267,408  
       
Deferred rent     141,035         -  
Obligations under finance lease     13,801         -  
       
      1,705,879         2,267,408  
Shareholders' Equity      
       
Share capital     60,771,418         60,562,286  
Accumulated other comprehensive income     620,433         591,752  
Contributed surplus     9,881,276         9,526,341  
Deficit     (60,554,636 )       (64,896,501 )
       
      10,718,491         5,783,878  
       
  $   12,424,370     $   8,051,286  

Cortex Business Solutions Inc.
Consolidated Statement of Income (Loss) and Comprehensive Income (Loss)
For the years ended July 31, 2018 and 2017
(Prepared in Canadian Dollars) 

  Years ended
July 31
 
    2018       2017  
Revenue          
 Access and usage fees $   11,562,518     $   9,964,212  
 Integration fees     240,227         268,579  
 Project management and other revenue     651,035         826,501  
           
      12,453,780         11,059,292  
           
Cost of Sales     3,287,242         3,217,622  
           
Gross Profit     9,166,538         7,841,670  
           
Expenses          
 Sales and marketing     2,248,966         2,382,665  
 Research and development     1,900,089         1,869,596  
 General and administrative     3,276,424         3,676,862  
 Severance and termination     184,911         138,897  
 Onerous contract     -         217,638  
           
      7,610,390         8,285,658  
           
Income (loss) before finance income     1,556,148         (443,988 )
           
Finance income     36,481         6,546  
       
Income tax (expense) recovery - current     (8,764 )       22,128  
Income tax recovery - deferred     2,758,000         -  
           
Net income (loss) $   4,341,865     $    (415,314 )
           
Other comprehensive income          
 Items that may be reclassified subsequently to net income (loss):        
           
 Foreign exchange gain (loss) on foreign operations     28,681         (48,480 )
           
Comprehensive income (loss) $   4,370,546     $   (463,794 )
           
    Basic   Diluted       Basic Diluted  
Net income (loss) per share $ 0.48 $ 0.47     $ (0.05) $ (0.05 )


Cortex Business Solutions Inc.
Consolidated Statement of Changes in Shareholders’ Equity
(Prepared in Canadian Dollars)

               

  Number of Common Shares Share Capital Accumulated Other Comprehensive Income Contributed Surplus Deficit Total Shareholders’ Equity
             
Balance – July 31, 2016   8,984,704 $   60,291,515 $   640,232   $   9,126,948   $   (64,481,187 ) $   5,577,508  
             
Net loss   -     -     -       -       (415,314 )     (415,314 )
Translation of foreign operations   -     -     (48,480 )     -       -       (48,480 )
Compensation units & stock options exercised   85,279     270,771     -       (100,480 )     -       170,291  
Deferred share units issued   -     -     -       200,000       -       200,000  
Stock based compensation   -     -     -       299,873       -       299,873  
             
Balance – July 31, 2017   9,069,983 $  60,562,286 $   591,752   $   9,526,341   $  (64,896,501 ) $   5,783,878  
             
Net income   -     -     -       -       4,341,865       4,341,570  
Translation of foreign operations   -     -     28,681       -       -       28,681  
Compensation units & stock options exercised   27,163     89,132     -       (31,051 )     -       58,081  
Deferred share units exercised for shares   40,554     120,000     -       (120,000 )     -       -  
Deferred share units issued           200,000         200,000  
Stock based compensation   -     -     -       305,986       -       305,986  
             
Balance – July 31, 2018   9,137,700 $   60,771,418 $   620,433   $   9,881,276   $  (60,554,636 ) $   10,718,491  


Cortex Business Solutions Inc.
Consolidated Statement of Cash Flows
For the years ended July 31, 2018 and 2017
(Prepared in Canadian Dollars) 

  Years ended
July 31
    2018       2017  
       
Cash provided by (used in)      
       
Operating activities      
Net income (loss) $   4,341,865     $   (415,314 )
Items not affecting cash      
 Recovery for deferred taxes     (2,758,000 )       -  
 Stock-based compensation     505,986         499,873  
 Amortization     183,624         139,051  
 Deferred Rent     141,035         -  
 Accretion on rebate provision     -         7,896  
 Loss on disposal of equipment     868         1,096  
Long term receivables     (33,024 )       (98,761 )
Rebate Payment         (302,041 )
Changes in non-cash working capital     (410,384 )       685,343  
       
Net cash provided by operating activities     1,971,970         517,143  
       
Financing activities      
Proceeds on exercise of compensation units & stock options      58,081         170,291  
Finance lease payments     (30,081 )       -  
       
Net cash provided by financing activities     28,000         170,291  
       
Investing Activities      
Acquisition of property and equipment     (79,043 )       (12,610 )
       
Net cash used in investing activities     (79,043 )       (12,610 )
       
Effect of exchange rate changes on cash and cash equivalents
  held in foreign currency
  28,682        (48,483 )
       
Cash inflow     1,949,609         626,341  
       
Cash, beginning of year     6,248,176         5,621,835  
       
Cash, end of year $   8,197,785     $  6,248,176  

 

cortex.png

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release