Quorum Information Technologies Inc. (TSX-V: QIS) (“Quorum”), a
North American SaaS Software and Services company providing
essential enterprise solutions that automotive dealerships and
Original Equipment Manufacturers (“OEMs”) rely on for their
operations, released its results today for the second quarter of
2024, ended June 30, 2024. Financial references are expressed in
Canadian dollars unless otherwise indicated. Please refer to the
MD&A and Financial Statements posted onto SEDAR related to
non-IFRS measures and risk factors.
“We are pleased to report that our profitable
growth strategy and better company-wide cost management has
resulted in Q2 2024 Adjusted EBITDA of $2.0 million, up 18% as
compared to the prior year and Adjusted Cash Income of $1.5
million, up 39% as compared to the prior year. Our SaaS Revenue
grew by 2% as compared to Q2 2023 with total revenue maintaining
steady,” stated Maury Marks, President and CEO. “The execution of
our strategy delivered three consecutive quarters of Adjusted
EBITDA margin of 20% and higher. Our improved profitably enabled us
to pay down $3.0 million on our BDC Capital Facility during Q3
2024, reducing the Facility balance from $8.3 million as of June
30, 2024, to $5.3 million.”
“I want to express my gratitude to our
employees, whose dedication was key to achieving our Q2 2024 plan
and strong quarterly results,” said Mr. Marks. "Their hard work is
enhanced by our integrated suite of 13 essential software solutions
and services. This product suite is crucial to our profitable
growth strategy, as it facilitates product cross-selling and plays
a vital role in driving the success of our dealerships, thereby
increasing value for both Quorum and its customers.”
Consolidated Results for Q2
2024
|
Q2 2024 |
%Change |
Q2 2023 |
|
YTD 2024 |
%Change |
YTD 2023 |
Total Revenue |
$ |
9,950,948 |
|
(1 |
%) |
$ |
10,035,849 |
|
|
$ |
20,013,739 |
|
0 |
% |
$ |
19,942,327 |
|
SaaS Revenue |
$ |
7,235,908 |
|
2 |
% |
$ |
7,073,872 |
|
|
$ |
14,432,144 |
|
2 |
% |
$ |
14,099,652 |
|
BDC Revenue |
$ |
2,453,293 |
|
(11 |
%) |
$ |
2,764,958 |
|
|
$ |
4,966,863 |
|
(10 |
%) |
$ |
5,529,693 |
|
Recurring Revenue |
$ |
9,689,201 |
|
(2 |
%) |
$ |
9,838,830 |
|
|
$ |
19,399,007 |
|
(1 |
%) |
$ |
19,629,345 |
|
Gross Margin |
$ |
4,927,762 |
|
1 |
% |
$ |
4,861,606 |
|
|
$ |
10,013,243 |
|
5 |
% |
$ |
9,499,875 |
|
Gross Margin % |
|
50 |
% |
|
|
48 |
% |
|
|
50 |
% |
|
|
48 |
% |
Net Income per Share |
$ |
0.005 |
|
|
$ |
0.029 |
|
|
$ |
0.021 |
|
|
$ |
0.022 |
|
Net Income1 |
$ |
388,966 |
|
(82 |
%) |
$ |
2,160,909 |
|
|
$ |
1,512,887 |
|
(6 |
%) |
$ |
1,601,000 |
|
Adjusted Net Income (Loss)2 |
$ |
388,966 |
|
2 |
% |
$ |
379,486 |
|
|
$ |
1,512,887 |
|
939 |
% |
$ |
(180,423 |
) |
Adjusted EBITDA |
$ |
1,951,742 |
|
18 |
% |
$ |
1,655,963 |
|
|
$ |
4,093,437 |
|
37 |
% |
$ |
2,988,040 |
|
Adjusted EBITDA Margin |
|
20 |
% |
|
|
17 |
% |
|
|
20 |
% |
|
|
15 |
% |
Adjusted Cash Income |
$ |
1,451,415 |
|
39 |
% |
$ |
1,045,202 |
|
|
$ |
3,121,213 |
|
92 |
% |
$ |
1,622,433 |
|
Adjusted Cash Income Margin |
|
15 |
% |
|
|
10 |
% |
|
|
16 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________1 Adjusted EBITDA – Net income
(loss) before interest and financing costs, taxes, depreciation,
amortization, stock-based compensation, foreign exchange gains and
losses, impairment, gain on bargain purchase, one-time acquisition
related expenses and restructuring expenses.2 Adjusted Cash Income
(“ACI”) (non-GAAP) – Adjusted EBITDA less capitalized salaries and
overhead.3 Net income for both Q2 2023 and YTD 2023 includes a gain
on bargain purchase of $1.8M due to the acquisition of VINN.4
Adjusted Net Income (Loss) (non-GAAP) – Net income (loss) before
impairment and gain on bargain purchase.
Second Quarter Results
- Revenue remained relatively consistent at $10.0 million in Q2
2024 compared to Q2 2023.
- SaaS revenue increased by 2% to $7.2 million in Q2 2024
compared to $7.1 million in Q2 2023.
- Gross margin increased by 1% to $4.9 million in Q2 2024
compared to Q2 2023. Gross margin has been 50% or higher for two
consecutive quarters.
- Adjusted EBITDA was $2.0 million in Q2 2024 compared to $1.7
million in Q2 2023, an increase of $0.3 million. This represented
an Adjusted EBITDA margin expansion of 3% from 17% in Q2 2023 to
20% in Q2 2024.
- Adjusted Cash Income was $1.5 million in Q2 2024 compared to
$1.0 million in Q2 2023, an increase of $0.4 million. This
represented an Adjusted Cash Income margin expansion of 4% from 10%
in Q2 2023 to 15% in Q2 2024.
SaaS-based operational Key Performance
Indicators (“KPIs”) are as follows:
|
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Dealer Rooftop Count - Canada |
1,305 |
1,303 |
1,301 |
1,292 |
1,300 |
Dealer Rooftop Count - US |
120 |
125 |
126 |
125 |
114 |
Dealer Rooftop Count - Total |
1,425 |
1,428 |
1,427 |
1,417 |
1,414 |
MRRPU* |
$1,655 |
$1,651 |
$1,639 |
$1,693 |
$1,706 |
|
|
|
|
|
|
*Monthly recurring revenue per unit (“MRRPU”)
implies that, as of the end of Q2 2024, each dealership (“Dealer
Rooftop”) represents approximately $20.5K of SaaS annual recurring
revenue (“ARR”).
The decline in customer rooftop count for Q2
2024 is primarily due to Quorum’s profitable growth strategy which
emphasizes cross-selling over new dealerships acquisitions. While
total rooftop count declined in Q2 2024, MRRPU improved as compared
to prior quarters.
Quorum Q2 2024 Results Conference Call
Details and Investor Presentation
Maury Marks, President and Chief Executive
Officer and Marilyn Bown, Chief Financial Officer will present the
Q2 2024 Results at a conference call with concurrent audio webcast,
scheduled for:
Date: |
|
Thursday, August 22nd, 2024 |
Time: |
|
11:00 am MT (1:00 pm ET) |
Dial-In #: |
|
Toll-Free North America: 1 (888) 660-6411 |
Conference ID: |
|
2512218 |
Webcast Link: |
|
Quorum Q2 2024 Results Conference Call (Webcast) |
|
|
|
An updated Investor Presentation, replay of the results
conference call, and transcripts of the conference call, will also
be available at www.QuorumInformationSystems.com.
About Quorum Information Technologies
Inc.
Quorum is a North American SaaS Software and
Services company providing essential enterprise solutions that
automotive dealerships and Original Equipment Manufacturers
(“OEMs”) rely on for their operations, including:
- Quorum’s Dealership Management System (DMS),
which automates, integrates, and streamlines key processes across
departments in a dealership, and emphasizes revenue generation and
customer satisfaction.
- DealerMine CRM, a sales and service Customer
Relationship Management (“CRM”) system and set of Business
Development Centre services that drives revenue into the critical
sales and service departments in a dealership.
- Autovance, a modern retailing platform that
helps dealerships attract more business through Digital Retailing,
improve in-store profits and closing rates through its desking tool
and maximize their efficiency and CSI through Autovance’s F&I
menu solution.
- Accessible Accessories, a digital retailing
platform that allows franchised dealerships to efficiently increase
their vehicle accessories revenue.
- VINN Automotive, a premier
automotive marketplace that streamlines the vehicle research and
purchase process for vehicle shoppers while helping retailers sell
more efficiently.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Forward-Looking Information
This press release may contain 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. 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.
Quorum has filed its Q2 2024 unaudited condensed
interim consolidated financial statements and notes thereto as at
and for the three months ended June 30, 2024, and accompanying
management and discussion and analysis in accordance with National
Instrument 51-102 – Continuous Disclosure
Obligations adopted by the Canadian securities regulatory
authorities.
Quorum Information Technologies Inc. is traded
on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For
additional information please go
to www.QuorumInformationSystems.com.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) has reviewed this release and neither accepts
responsibility for the adequacy or accuracy of this release.
PDF
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