Quorum Information Technologies Inc. (TSX Venture: QIS) (Quorum), a
leading provider of innovative and robust technology solutions and
services to traditional and electric vehicle dealerships and
Original Equipment Manufacturers (OEM) across North America,
released its results for Q2 2021 today.
Q2 2021 recorded the highest SaaS and BDC
revenue quarter in Quorum’s history. SaaS and BDC revenue increased
by 5% and 9% respectively over Q1 2021. These quarter-over-quarter
increases represent annualized increases of 20% and 36%
respectively.
Second Quarter Results
- SaaS revenue was $6.4 million, an increase of 51% compared to
Q2 2020 and an increase of 5% compared to Q1 2021.
- BDC revenue was $2.4 million, an increase of 55% compared to Q2
2020 and an increase of 9% compared to Q1 2021.
- Total revenue was $9.1 million, an increase of 53% compared to
Q2 2020 and an increase of 6% compared to Q1 2021.
- Gross margin was $4.0 million, an increase of 64% compared to
Q2 2020 and an increase of 7% as compared to Q1 2021.
- Adjusted EBITDA1 was $1.1 million, an increase of 4% compared
to Q2 2020.
- Net loss was $0.2 million, compared to a $0.1 million in Q2
2020.
“This was a very exciting quarter, delivering
the highest organic SaaS growth quarter in the Company’s history.
As a result, we achieved 5% sequential or 20% annualized organic
SaaS revenue growth. BDC growth was also strong in Q2 2021,
successfully improving BDC gross margins by 30%,” stated Maury
Marks, President and CEO. “Additionally, our transformative MyDeal
and PowerLane solutions, which allow dealership customers to buy a
vehicle online and to have a touchless service experience, are
achieving strong market adoption and increasing our ‘share of
wallet’.”
“I would especially like to acknowledge our
employees and customers who helped Quorum navigate COVID-19
challenges,” added Marks. “Our employees are the driving force
behind our strong results and their continued innovation ensures
Quorum has a product suite and services offering prepared for the
future of automotive.”
Financial Summary
Three months
ended($000’s) |
June 30, 2021 |
June 30, 2020 |
SaaS revenue2 |
$6,429 |
|
$4,262 |
|
BDC revenue3 |
|
2,386 |
|
|
1,541 |
|
Services and one-time revenue |
|
258 |
|
|
136 |
|
Total revenue |
|
9,073 |
|
|
5,939 |
|
|
|
|
Cost of revenue |
|
5,057 |
|
|
3,493 |
|
|
|
|
Gross margin |
|
4,016 |
|
|
2,446 |
|
Gross margin percentage |
|
44 |
% |
|
41 |
% |
|
|
|
Adjusted EBITDA |
|
1,103 |
|
|
1,063 |
|
|
|
|
Adjusted Cash Income4 |
|
446 |
|
|
645 |
|
|
|
|
Net loss |
$(243 |
) |
$(65 |
) |
Quorum Q2 2021 Results Conference Call
Details and Investor Presentation
Maury Marks, President and Chief Executive
Officer and Marilyn Bown, Chief Financial Officer will present the
Q2 2021 Annual Results at a conference call with concurrent audio
webcast, scheduled for:
Date: |
Thursday,
August 26, 2021 |
Time: |
11:00 am MST |
Dial-In #: |
Toll-Free North America: 1 (844) 967-3741 |
Webcast Link: |
Q2 2021 Quarterly Results Conference Call (Webcast) |
The Q2 2021 Results Investor Presentation, a
replay of the conference call and transcripts of the conference
call will also be available at
www.QuorumInformationSystems.com.
Forward Looking Information
This report contains certain forward-looking
information and statements within the meaning of applicable
securities laws. All statements in this report, other than
statements of historical fact, which address events or developments
concerning Quorum Information Technologies Inc. ("Quorum" or the
“Corporation”) that Quorum expects to occur are "forward-looking
information and statements". The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "potential", "could",
"scheduled", "believe", "plans", "intends", "might" and similar
expressions are intended to identify forward-looking information or
statements.
In particular, but without limiting the
foregoing, this document may contain forward-looking information
and statements pertaining to the following: business plan of Quorum
including its plans for targeting new Original Equipment
Manufacturer (“OEM”) integration, new dealership rooftop sales, and
increasing Automotive Group Partnerships; the timing for completion
and cost of OEM integration; estimates of return on assets and
Adjusted EBITDA1; potential merger and acquisition (“M&A”)
opportunities; the timing of adoption of new accounting standards
and the potential impact of new accounting standards on the
Corporation’s financial statements; the effect of acquisitions on
the Corporation; the effect of the BDC Capital facility; the effect
of the COVID-19 pandemic on industry activity and economic activity
in North America as a whole; various industry activity forecasts;
growth opportunities including those in the United States;
anticipated requirements by OEM manufacturers relating to
integrations and certifications; and other expectations, beliefs,
plans, goals, objectives, assumptions, information and statements
about possible future events, conditions, results of operations or
performance. Various assumptions were used in drawing the
conclusions or making the forecasts and projections contained in
the forward-looking statements throughout this report. The
forward-looking information and statements contained in this report
reflect several material factors, expectations and assumptions
including, without limitation: (i) capital expenditures by dealers;
(ii) market availability of current and future dealership rooftops;
(iii) schedules and timing of certain projects and Quorum's
strategy for growth; (iv) Quorum's future operating and financial
results; and (v) treatment under governmental regulatory regimes
and tax and other laws. The forward-looking information and
statements included in this report are not guarantees of future
performance and should not be unduly relied upon.
Forward-looking statements are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties, which could cause actual results to differ
materially from those anticipated and described in the
forward-looking information and statements. Such information and
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information or statements including, without limitation: (i)
volatility in exchange rates for the Canadian dollar relative to
the US dollar; (ii) liabilities and risks inherent in the software
services industry; (iii) competition for, among other things,
capital and skilled personnel; (iv) changes in general economic,
market and business conditions in Canada and the United States; and
(v) actions by governmental or regulatory authorities including
changes in income tax laws or changes in tax laws. Quorum cautions
that the foregoing list of assumptions, risks and uncertainties is
not exhaustive. The forward-looking information and statements
contained in this document speak only as of the date of this
document, and Quorum assumes no obligation to update or revise them
to reflect new events or circumstances, except as may be required
pursuant to applicable laws. Any financial outlook or
future-oriented financial information in this document, as defined
by applicable securities legislation, has been approved by
management of Quorum. Such financial outlook or future-oriented
financial information is provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
About Quorum Information Technologies Inc.
Quorum is a North American company focused on developing,
marketing, implementing and supporting its portfolio of software
and services for automotive dealerships that includes:
- XSellerator, a Dealership Management System (DMS) that
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.
- Advantage, a full showroom system for independent dealerships
and a management system that also includes in-house leasing,
inventory management, and accounting.
Quorum has filed its Q2 2021 unaudited condensed
consolidated financial statements and notes thereto as at and for
the three months ended June 30, 2021, 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.
1 Adjusted EBITDA (non-GAAP) – Net income (loss) before interest
and financing costs, taxes, depreciation, amortization, stock-based
compensation, foreign exchange gains and losses, one-time
acquisition-related expenses and restructuring fees.2 SaaS revenue
for the three months ended June 30, 2020 included $1.5 million in
COVID-19 related customer discounts.3 BDC revenue for the three
months ended June 30, 2020 included $0.3 million in COVID-19
related customer discounts.4 Adjusted Cash Income (non-GAAP) –
Adjusted EBITDA less capitalized salaries and overhead.
Contact: Maury Marks
403-777-0036Investors@QuorumInfoTech.com
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