OTTAWA, April 29 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue grew by 39% to $5,060,576 in FY 2007 compared to $3,632,304 in FY 2006. Operating income significantly improved to $266,182 in FY 2007 compare to an operating lost of $13,068 in FY 2006. The Company's defined adjusted EBITDAS improved to $425,000 in FY 2007, compared to EBITDAS of $292,000 in FY 2006. Net Income was negative only because of a one-time write down of $233,088 due to obsolete equipment. Net loss after the write-down for 2007 was $225,797 compared to a net loss of $145,542 in 2006.
"2007 was a great year for In-Touch with significant improvements in all facets of our business. We generated significant cash from operations, raised $550,000 in debt from the Business Development Bank of Canada and with a new chartered bank, and banking agreement, we have a much stronger balance sheet", said Michael Gaffney, Chief Executive Officer.
"We also expect to close the asset acquisition of MarketLine Research Inc. of Minneapolis Minnesota in the next few days. This acquisition will expand our data collection products with the addition of their call centre and call centre technology along with their strength in market research. The acquisition will have an immediate positive impact on revenue", said Gaffney.
Consolidated Statements
of comprehensive loss 2007 2006
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Revenue $ 5,060,576 $ 3,632,304
Cost of services 2,089,878 1,499,682
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Gross profit 2,970,698 2,132,622
Total operating expenses 2,704,516 2,145,690
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Earnings (loss) before
undernoted items 266,182 (13,068)
Interest expense on short term debt (68,603) (65,281)
Interest expense on long term debt (44,636) (14,968)
Amortization of financing costs (23,273) -
Amortization of discount on
promissory note (51,735) (38,044)
Amortization of intangible asset (19,044) (18,940)
Change in fair value
of derivative (Note 6) (60,212) -
Loss on foreign exchange (23,486) (1,299)
Gain on disposal of property
and equipment 32,098 6,058
Impairment of property
and equipment (Note 3) (233,088) -
-------------- -------------
Net loss and comprehensive loss $ (225,797) $ (145,542)
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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