DEQ Reports Record Revenue of $7.0 Million and EBITDA of $605,000 for the Year Ended November 30, 2013
27 Febbraio 2014 - 10:01PM
Marketwired
DEQ Reports Record Revenue of $7.0 Million and EBITDA of $605,000
for the Year Ended November 30, 2013
LEVIS, QUEBEC--(Marketwired - Feb 27, 2014) - DEQ Systems Corp.
(TSX-VENTURE:DEQ) ("DEQ" or the "Company") announced today the
filing of its annual financial results for the fiscal year ended
November 30, 2013. The Consolidated Financial Statements are
available on SEDAR (www.sedar.com) and DEQ's website. A conference
call will be held on Friday, February 28, 2014 at 11am EST to
present and discuss these results. Those interested in
participating should dial toll free 1 (877) 223-4471 or (647)
788-4922. A PowerPoint presentation will be available on DEQ's
website in the Investors/Financial Reports/Presentation section to
support the call content.
2013 ANNUAL RESULTS AND
FOURTH QUARTER HIGHLIGHTS:
Financial Metrics
- Revenue
- 25% increase in total revenue to $7,004,000 in 2013 as compared
to $5,605,000 in 2012.
- 32% increase in product rental revenue to $5,481,000 in 2013
from $4,149,000 in 2012.
- 56% compound annual growth rate of product rental revenue over
the last three years.
- For the fourth quarter 2013, DEQ recorded total revenue of
$1,927,000, a 19% increase compared to $1,617,000 in the fourth
quarter 2012.
- Operating Expenses
- Operating expenses before non-cash items were stable,
increasing 2%, to $5,375,000 from $5,290,000 in 2012. DEQ expects
its operating costs to remain relatively stable for 2014 due to
economies of scale and efficiency gains.
- For the fourth quarter 2013, DEQ recorded operating expenses of
$1,320,000, a 12% decrease compared to $1,495,000 in fourth quarter
2012, as a result of cost containment initiatives.
- EBITDA
- DEQ recorded positive EBITDA of $605,000 in 2013 compared to
$(496,000) in 2012.
- For the fourth quarter 2013, DEQ recorded EBITDA of $328,000
compared to $(205,000) in the fourth quarter 2012.
- Liquidity and Cash Flow
- During fiscal year 2013, DEQ's cash position increased by
$815,000 due to positive cash flow from operating activities of
$266,000 and share issuance of $1,000,000, partially offset by
investment activities in leased equipment and intangible assets of
$483,000 which funded DEQ's continued growth.
- DEQ had a cash position of $1,565,000 as of November 30,
2013.
Operational Highlights
- Product Installations
- In 2013 DEQ increased its net installation base by 332 units
(67 units during the fourth quarter 2013) at an average lease price
of $3,500 per annum, representing an increase of approximately
$1,162,000 of new recurring revenue per year.
- As of November 30, 2013, DEQ had 1,677 directly installed
products worldwide and 380 products installed through distributors
worldwide for a total installed base of 2,057 products
worldwide.
"DEQ delivered excellent financial results in 2013 with a 25%
increase in revenue and a 32% increase in product rental revenue,"
stated François Proulx, Interim Chief Executive Officer and Chief
Financial Officer of DEQ. "The Company also reached a turning point
by achieving positive EBITDA resulting from management's diligent
efforts to control spending and create profitable growth. We will
pursue the same goal in 2014 and focus on operational efficiencies
while continuing to grow our installed base. With more than 2,050
units currently in operation worldwide, generating an estimated $7
million in annual recurring revenue, we are very encouraged with
the pace of our enhanced roll-out strategy. We continue to target
robust market opportunities and we are very confident in the
potential growth of all of our product lines in 2014."
|
Statement of Earnings |
|
Fourth Quarter |
|
Twelve-Month Period |
|
|
November 30, 2012 |
|
November 30, 2013 |
|
November 30, 2012 |
|
November 30, 2013 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product rental |
|
1,095,000 |
|
|
1,500,000 |
|
|
4,150,000 |
|
|
5,481,000 |
|
Royalties (1) |
|
283,000 |
|
|
302,000 |
|
|
1,157,000 |
|
|
1,170,000 |
|
Total recurring revenue |
|
1,378,000 |
|
|
1,802,000 |
|
|
5,307,000 |
|
|
6,651,000 |
|
Non recurring revenue |
|
239,000 |
|
|
125,000 |
|
|
298,000 |
|
|
353,000 |
|
Total Revenue |
|
1,617,000 |
|
|
1,927,000 |
|
|
5,605,000 |
|
|
7,004,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (2) |
|
1,290,000 |
|
|
1,648,000 |
|
|
4,794,000 |
|
|
5,980,000 |
|
% Gross margin |
|
80 |
% |
|
86 |
% |
|
86 |
% |
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (2) |
|
1,495,000 |
|
|
1,320,000 |
|
|
5,290,000 |
|
|
5,375,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3) |
|
(205,000 |
) |
|
328,000 |
|
|
(496,000 |
) |
|
605,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
(16,000 |
) |
|
7,000 |
|
|
50,000 |
|
|
160,000 |
|
Amortization expenses |
|
624,000 |
|
|
708,000 |
|
|
2,727,000 |
|
|
2,791,000 |
|
Interest expenses |
|
4,000 |
|
|
3,000 |
|
|
13,000 |
|
|
15,000 |
|
Foreign exchange (gain) loss |
|
23,000 |
|
|
7,000 |
|
|
50,000 |
|
|
7,000 |
|
Net Income (Loss) |
|
(840,000 |
) |
|
(397,000 |
) |
|
(3,336,000 |
) |
|
(2,368,000 |
) |
Net Income (Loss ) per share |
$ |
(0.012 |
) |
$ |
(0.006 |
) |
$ |
(0.048 |
) |
$ |
(0.034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: |
DEK International - Distributor located in Panama that
covers mostly South America territories. |
|
|
Note 2: |
Gross profit and operating expenses excluded non-cash
items such as depreciation, amortization and stock-based
compensation. |
|
|
Note 3: |
DEQ uses EBITDA (Earnings before stock based
compensation, Interest, Taxes, Depreciation and Amortization and
foreign exchange impact), a non-IFRS measure, to evaluate the
Company's operating performance. Securities regulators require that
issuers caution readers that measures adjusted to a basis other
than IFRS do not have standardized meaning under IFRS and are
unlikely to be comparable to similar measures used by other
companies. |
|
|
|
|
|
|
|
|
Financial Position |
|
|
|
|
Nov. 30, 2012 |
|
Nov. 30, 2013 |
|
(Audited) |
|
(Audited) |
|
|
|
|
|
|
Cash and cash equivalents |
|
751,000 |
|
|
1,565,000 |
Current assets (other than cash) |
|
1,883,000 |
|
|
2,175,000 |
Long-term assets |
|
8,884,000 |
|
|
6,576,000 |
Total Assets |
$ |
11,518,000 |
|
$ |
10,316,000 |
|
|
|
|
|
|
Current liabilities |
|
1,278,000 |
|
|
1,244,000 |
Shareholders' equity |
|
10,240,000 |
|
|
9,072,000 |
Total Liabilities and Equity |
$ |
11,518,000 |
|
$ |
10,316,000 |
|
|
|
|
|
|
Number of shares outstanding |
|
69,182,000 |
|
|
71,682,000 |
ABOUT DEQ
DEQ Systems Corp. (TSX-VENTURE:DEQ) is a customer-centric
company that delivers best of breed table game technology related
products to the global gaming industry that adds value and
increases client revenue. DEQ provides table game bonusing
technology, table games, table game results tracking and jackpot
connectivity solutions to more than 275 casinos in 30 countries.
DEQ is an intellectual property focused company that has an
extensive patent portfolio of more than 20 patents recognized in 50
countries. For further information, please visit www.deq.com.
TSX Venture
does not accept any responsibility regarding the accuracy of the
information contained in this press release.
Forward-looking statements contained in this Press Release
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance and achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the said
forward-looking statements.
Francois ProulxInterim Chief Executive Officer andChief
Financial OfficerDEQ Systems Corp.(418)
839-3012francois.proulx@deq.comMarie-Josee PaquinMarketing and
Communications ManagerDEQ Systems Corp.(418)
839-3012marie-josee.paquin@deq.com
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