Quorum Information Technologies Inc. (QIS:TSXV) (“Quorum” or the
“Company”), a SaaS software and services company that provides
essential software that vehicle dealerships rely on for operations
throughout North America, released its results today for the fourth
quarter and fiscal 2021, ending December 31, 2021. 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 delighted to report record total
revenue, strong revenue growth, and recurring revenue that
represents 97% of our total revenue,” stated Maury Marks, President
and CEO. “Our growth was balanced between adding new rooftops and
cross-selling additional products to existing customers. Subsequent
to year-end, we completed the acquisition of Accessible
Accessories, which adds a significant number of additional rooftops
to Quorum’s customer base. Now, with at least one Quorum product in
41% of Canadian franchised dealerships, Quorum has a leading
position in the Canadian market with substantial growth runway
across North America. I would especially like to acknowledge our
employees and customers who continue to help Quorum navigate the
challenges in these unprecedented times,” added Marks. “Our
employees are the driving force behind our strong 2021 results and
their continued innovation ensures Quorum has a product suite
prepared for the future of automotive.”
Consolidated Results for Q4 2021 and
Fiscal Year 2021
|
Q4 2021 |
% Change |
Q4 2020 |
|
|
2021 |
|
% Change |
|
2020 |
|
Total Revenue |
$ |
9,220,623 |
|
11% |
|
$ |
8,316,891 |
|
|
$ |
36,051,217 |
|
17% |
|
$ |
30,856,471 |
|
Recurring Revenue |
$ |
9,042,999 |
|
13% |
|
$ |
7,990,783 |
|
|
$ |
35,122,166 |
|
19% |
|
$ |
29,622,474 |
|
Gross Margin |
$ |
4,315,665 |
|
17% |
|
$ |
3,680,338 |
|
|
$ |
16,409,098 |
|
20% |
|
$ |
13,654,299 |
|
Gross Margin % |
|
47% |
|
|
|
44% |
|
|
|
46% |
|
|
|
44% |
|
EPS (Loss) |
-$ |
0.028 |
|
|
-$ |
0.007 |
|
|
-$ |
0.037 |
|
|
-$ |
0.026 |
|
Net Loss |
-$ |
2,015,162 |
|
-324% |
|
-$ |
475,606 |
|
|
-$ |
2,711,265 |
|
-46% |
|
-$ |
1,859,174 |
|
Adjusted Net Loss2 |
-$ |
347,068 |
|
27% |
|
-$ |
475,606 |
|
|
-$ |
1,043,171 |
|
44% |
|
-$ |
1,859,174 |
|
Adjusted EBITDA |
$ |
1,142,424 |
|
-23% |
|
$ |
1,492,868 |
|
|
$ |
4,988,389 |
|
2% |
|
$ |
4,903,691 |
|
Adjusted EBITDA Margin |
|
12% |
|
|
|
18% |
|
|
|
14% |
|
|
|
16% |
|
Adjusted Cash Income3 |
$ |
583,027 |
|
-28% |
|
$ |
815,353 |
|
|
$ |
2,348,928 |
|
-5% |
|
$ |
2,476,668 |
|
Fourth Quarter Results
- Total revenue increased by 11% to
$9.2 million in Q4 2021 compared to $8.3 million in Q4 2020.
- Recurring SaaS revenue increased by
9% to $6.6 million in Q4 2021 compared to $6.0 million in Q4
2020.
- Recurring services revenue (“BDC”)
increased by 25% to $2.4 million in Q4 2021 compared to $2.0
million in Q4 2020.
- Recurring revenue was 98% of total
revenue for the quarter compared to 96% reported in Q4 2020.
- Total Annual Recurring Revenue
(“ARR”) from SaaS of $26.4 million as of Q4 2021.
- Total annual recurring services
revenue (“BDC”) of $9.8 million as of Q4 2021.
- Gross margin increased to $4.3
million and 47% of total revenue in Q4 2021 compared to $3.7
million and 44% of total revenue for Q4 2020. Gross margin
increased by 17% as compared to Q4 2020.
- Adjusted EBITDA margin was 12% for
Q4 2021 as compared to 18% for Q4 2020 due to an increase in
operating expenses.
Fiscal Year 2021 Results
- Total revenue increased by 17% to
$36.1 million in 2021 compared to $30.9 million in 2020.
- Recurring SaaS revenue increased by
16% to $25.7 million in 2021 compared to $22.1 million in
2020.
- Recurring services revenue (“BDC”)
increased by 26% to $9.4 million in 2021 compared to $7.5 million
in 2020.
- Recurring revenue was 97% of total
revenue for 2021 compared to 96% reported in 2020.
- Gross margin increased to $16.4
million and 46% of total revenue in 2021 compared to $13.7 million
and 44% of total revenue for 2020. Gross margin increased by 20% as
compared to 2020.
- Adjusted EBITDA margin was 14% for
2021 as compared to 16% for 2020.
- Including cash of $6.5 million,
total net working capital decreased to $7.6 million from $9.1
million as of December 31, 2020, a decrease of $1.5 million that is
due to the $1.5 million prepayment of principal and interest on the
BDC Capital Loan Facility in April 2021.
Subsequent Event
On April 1, 2022, Quorum completed the
acquisition of Accessible Accessories Ltd. (“Accessible”) pursuant
to a share purchase agreement (the “Agreement”) between Quorum and
Accessible. Under the terms of the Agreement, the Corporation
acquired all of the issued and outstanding shares of Accessible for
consideration comprised of $4,500,000 in cash with a 10% holdback
to be released September 30, 2022, pursuant to the terms of an
earn-out structure. The Corporation will finance the $4,500,000
with current cash reserves and its BDC Capital facility.
SaaS-based operation KPIs are as follows:
|
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Proforma Q4 2021 (including Accessible) |
Dealer Rooftop Count - Canada |
893 |
882 |
898 |
904 |
920 |
1,343 |
Dealer Rooftop Count - US |
128 |
128 |
127 |
128 |
125 |
125 |
Dealer Rooftop Count - Total |
1,021 |
1,010 |
1,025 |
1,032 |
1,045 |
1,468 |
MRRPU |
$1,971 |
$2,013 |
$2,091 |
$2,116 |
$2,105 |
$1,584 |
Monthly recurring revenue per unit (“MRRPU”)
implies that, as of the end of Q4 2021, each dealership (“Dealer
Rooftop”) represents approximately $25.3K of SaaS ARR.
2021 Business Highlights
- In January 2021, Quorum announced that the company launched a
Windows Virtual Desktop pilot built on Microsoft Azure which will
allow Quorum to deploy its XSellerator DMS to automotive
dealerships customers leveraging the Microsoft Azure cloud
platform, eliminating the requirement for an on premise server or a
Quorum hosted solution.
- In January 2021, Quorum announced that the company was working
with Microsoft on a re-platforming and data consolidation project
utilizing Microsoft Azure Synapse analytics.
- In March 2021, Quorum introduced new enhancements to its
PowerLane product which includes Mobile check-in capability, and
new enhancements to its MyDeal product which includes the ability
for customers to complete online payments for a vehicle
deposit.
- In March 2021, Quorum introduced new enhancements to its
Autovance MyDeal product and Autovance retailing platform as part
of its Digital Retailing strategy to allow customers to complete
online payments for a vehicle deposit.
- In April 2021, Quorum entered into a partnership agreement with
EDealer, Canada’s largest supplier of franchised dealership web
sites, which will allow EDealer to resell Quorum’s Autovance Desk
and MyDeal Products to their customers.
- In June 2021, Quorum announced that the O’Regan’s Automotive
Group in Nova Scotia had selected Quorum’s XSellerator DMS and
related product suite as their main DMS software provider.
- In August 2021, Quorum expanded its BDC services to include
collision centres, providing valuable lead generation services that
will help book more service appointments.
- In August 2021, Quorum announced that its Communicator
electronic messaging platform delivers new Digital Marketing
capabilities designed to help a dealership Make More Money
(M3).
- In September 2021, Quorum was named a certified product under
the GM Retail Excellence Program by General Motors of Canada.
Quorum 2021 Annual Results Conference
Call Details and Investor Presentation
Maury Marks, President and Chief Executive
Officer and Marilyn Bown, Chief Financial Officer will discuss
these results on a conference call with a concurrent audio webcast.
Details are as follows:
Date: |
Thursday, April 21, 2022 |
Time: |
11:00 am MT |
Dial-In #: |
Toll-Free North America: 1
(844) 967-3741 |
Webcast Link: |
Year End 2021 Annual Results
Conference Call (Webcast) |
The Year End 2021 Annual Results Investor
Presentation, a replay of the conference call and a transcript of
the conference call will also be available at
www.QuorumInformationSystems.com
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:
Quorum’s Dealership Management System (DMS)
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.
Quorum Information Technologies Inc. is traded
on the TSX Venture Exchange (TSXV) under the symbol QIS. For
additional information, please go to
QuorumInformationSystems.com.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Investor Relations ContactRon
ShuttleworthPartnerOak Hill
Financial647-500-7371rshuttleworth@oakhillfinancial.ca
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 2021 audited consolidated
financial statements and notes thereto as at and for the year ended
December 31, 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 Adjusted Net
Loss (non-GAAP) – Net income (loss) before impairment write down
for Advantage.3 Adjusted Cash Income (“ACI”) (non-GAAP) – Adjusted
EBITDA less capitalized salaries and overhead.
PDF
available: http://ml.globenewswire.com/Resource/Download/4350c02b-e925-46b3-9a6b-e5154f7212cf
Quorum Information Techn... (TSXV:QIS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Quorum Information Techn... (TSXV:QIS)
Historical Stock Chart
From Apr 2023 to Apr 2024