OTTAWA, May 28 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue grew by 17% to $5,914,814 in FY 2008 compared to $5,060,576 in FY 2007. Net loss for 2008 was $177,206 compared to a net loss of $225,797 in 2007. The company-defined adjusted EBITDA was $351,000 in FY 2008, compared to an EBITDA of $425,000 in FY 2007.
"The economic downturn in the third and fourth quarter provided significant challenges to the Company as revenues from its auto industry customers and others were put under pressure. Coincident with the downturn, we also made two acquisitions; NCI Mobility of Chicago and MarketLine Research of Minneapolis. The cost of completing these acquisitions resulted in additional pressure on our balance sheet", said Michael Gaffney, Chief Executive Officer.
"Given the current economic environment, forecasting is challenging at best. However, we do expect continued growth this year. Our revenue backlog for 2009 is currently higher than the same period in 2008", said Gaffney.
Consolidated Statements of Operations 2008 2007
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Revenue $ 5,914,814 $ 5,060,576
Cost of services and goods sold 2,321,746 2,089,878
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Gross profit 3,593,068 2,970,698
Total operating expenses 3,812,551 2,704,516
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Earnings (loss) before undernoted items (219,483) 266,182
Interest expense on short term debt (20,658) (68,603)
Interest expense on long term debt (94,803) (44,636)
Amortization of financing costs (18,581) (23,273)
Amortization of discount on promissory note (55,019) (51,735)
Amortization of intangible asset (34,123) (19,044)
Change in fair value of derivative 94,096 (60,212)
Gain (loss) on foreign exchange 119,055 (23,486)
Gain on disposal of property and equipment 50,311 32,098
Other income 22,000 -
Impairment of property and equipment - (233,088)
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Net loss $ (177,206) $ (225,797)
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Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
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