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 first
quarter of 2022, ending March 31, 2022. 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 happy to report record total and
recurring revenue and are pleased with our overall revenue growth
for this quarter,” stated Maury Marks, President and CEO. “It was
an exciting quarter as we attended the first in person National
Automobile Dealers Association (“NADA”) convention in two years.
Additionally, we restructured our BDC Capital debt facility to
provide more flexibility for future investments or acquisitions.
Finally, 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 42% of
Canadian franchised dealerships, Quorum has a leading position in
the Canadian market with substantial profitable 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 Q1 2022 results
and their continued innovation ensures Quorum has a product suite
prepared for the future of automotive.”
Consolidated Results for Q1
2022
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Quorum Information Technologies Inc |
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Table for Press Release |
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Q1
2022 |
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Q1
2022 |
%
Change |
Q1
2021 |
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Total Revenue |
$ |
9,286,058 |
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9 |
% |
$ |
8,555,768 |
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Recurring
Revenue |
$ |
9,116,961 |
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10 |
% |
$ |
8,287,847 |
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Gross
Margin |
$ |
4,400,199 |
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17 |
% |
$ |
3,769,697 |
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Gross Margin
% |
|
47 |
% |
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44 |
% |
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EPS
(Loss) |
-$ |
0.008 |
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-$ |
0.004 |
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Net
Loss |
-$ |
597,617 |
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-94 |
% |
-$ |
308,714 |
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Adjusted EBITDA1 |
$ |
882,000 |
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-32 |
% |
$ |
1,291,499 |
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Adjusted EBITDA Margin |
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9 |
% |
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15 |
% |
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Adjusted Cash Income2 |
$ |
153,182 |
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-74 |
% |
$ |
593,524 |
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First Quarter Results
- Total revenue increased by 9% to
$9.3 million in Q1 2022 compared to $8.6 million in Q1
2021. This represents a strong improvement relative to
modest 0.5% growth in Q1 2021 as compared to Q1 2020.
- Recurring SaaS revenue increased by
9% to $6.6 million in Q1 2022 compared to $6.1 million in Q1
2021.
- Recurring services revenue (“BDC”)
increased by 14% to $2.5 million in Q1 2022 compared to $2.2
million in Q1 2021.
- Recurring revenue was 98% of total
revenue for the quarter compared to 97% reported in Q1 2021.
- Total Annual Recurring Revenue
(“ARR”) from SaaS of $26.5 million as of Q1 2022.
- Total annual recurring services
revenue (“BDC”) of $10.0 million as of Q1 2022.
- Gross margin increased to $4.4
million and 47% of total revenue in Q1 2022 compared to $3.8
million and 44% of total revenue for Q1 2021. Gross margin
increased by 17% as compared Q1 2021.
- Adjusted EBITDA margin was 9% for
Q1 2022 as compared to 15% for Q1 2021 primarily due to attendance
at the 2022 NADA convention at a cost of $0.3 million as compared
to $nil in Q1 2021 when the convention was held virtually.
SaaS-based dealership rooftops are as
follows:
|
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
Proforma Q1 2022 (including Accessible) |
Dealer Rooftop Count - Canada |
882 |
898 |
904 |
920 |
923 |
1,346 |
Dealer Rooftop Count - US |
128 |
127 |
128 |
125 |
116 |
116 |
Dealer Rooftop Count - Total |
1,010 |
1,025 |
1,032 |
1,045 |
1,039 |
1,462 |
MRRPU |
$2,013 |
$2,091 |
$2,116 |
$2,105 |
$2,124 |
$1,595 |
Monthly recurring revenue per unit (“MRRPU”)
implies that, as of the end of Q1 2022, each dealership (“Dealer
Rooftop”) represents approximately $25.5K of SaaS ARR.
Q1 2022 Business Highlights
- In February 2022, Quorum
restructured its credit facility with BDC Capital Inc. The new
facilities significantly reduce interest rates and extends the
maturity date from January 15, 2025 to March 15, 2027. The original
loan was replaced by a Mezzanine loan and a Cash Flow loan, with
the Mezzanine loan replacing the disbursed funds of the original
BDC Capital loan and a new Cash Flow loan that can be utilized for
acquisitions and working capital requirements.
- In March 2022, Quorum announced new
OEM integrated functionality for its PowerLane product. PowerLane
is a mobile Service Lane tool that provides customers with a
touchless, transparent customer experience that includes media
capture capabilities that allow dealership customers to review a
video of any necessary repairs.
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. Accessible is Quorum’s fourth acquisition since 2017
and marks another step forward in Quorum’s strategy to be a
full-service provider to automotive dealerships.
Quorum Q1 2022 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, May
26th, 2022 |
Time: |
11:00 am MT |
Dial-In #: |
Toll-Free North America: 1 (888) 660-6411 |
Webcast Link: |
Q1 2022 Quarterly Results Conference Call (Webcast) |
The Q1 2022 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
Daniela Trnka Investor
Relations 403-777-0036 Daniela.Trnka@QuorumInfoTech.com
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 Q1 2022 unaudited condensed consolidated
financial statements and notes thereto as at and for the three
months ended March 31, 2022, 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.
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