OTTAWA, June 1 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) is pleased to announce that revenue grew by 17% to $1,358,291 in Q1 2009 compared to $1,159,999 in Q1 2008. Net loss for Q1 2009 was $160,228 compared to a net loss of $240,806 in Q1 2008. The company-defined adjusted EBITDA was $(46,000) in Q1 2009, compared to an EBITDA of $(80,000) in Q1 2008.
"Revenues increased compared to Q1 2008. Q1 is typically our lowest revenue cycle in the year. We are focused on increasing our revenue, even in these difficult economic times, and our current sales forecast has second quarter 2009 revenues exceeding last year's second quarter revenues. We expect the company to generate positive cash flows for the balance of the year and these funds will be used to reduce debt and improve our working capital. Our largest client, General Motors U.S.A. ("GM"), declared bankruptcy today. While GM faces significant restructuring challenges, we believe that our core services will continue to be in demand by GM during their transition - helping them learn about their customers and sell automobiles. Today GM informed us that it is 'business as usual'", said Michael Gaffney, Chief Executive Officer.
"Over the next two quarters, we are entering the strongest demand period of the year for In-Touch services with a backlog greater than at this time last year", said Gaffney.
Consolidated Statements of Operations Q1 2009 Q1 2008
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Revenue $ 1,358,291 $ 1,159,999
Cost of services and goods sold 558,190 499,496
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Gross profit 800,101 660,503
Total operating expenses 936,001 894,699
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Earnings (loss) before undernoted items (135,900) (234,196)
Interest expense (34,195) (25,833)
Amortization of financing costs (4,217) (1,168)
Amortization of discount on promissory note - (15,240)
Amortization of intangible asset (2,777) (4,761)
Change in fair value of derivative - (3,751)
Gain (loss) on foreign exchange 2,774 15,364
Gain on disposal of property and equipment 14,087 28,779
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Net loss $ (160,228) $ (240,806)
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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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