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Posera-HDX Announces Financial Results for the Fourth Quarter and Fiscal 2010

^{Published on 2011-03-25 06:05:38 - Market Wire}
 

TORONTO, March 25 /CNW/ - Posera-HDX Inc. (TSX:HDX) (the Company) announced today its financial results for the three and twelve-month ending December 31st, 2010. HDX is listed on the TSX under the symbol "HDX".

Paul Howell, Chief Executive Officer, reports:

Sales and service revenues for the three and twelve-months ending December 31, 2010 were $5,219,357 and $15,029,267 respectively. This represents a quarterly increase of 114.0% from $2,438,668 and an annual increase of 58.2% from $9,518,681 for the quarter and year ending December 31, 2009.

Excluding one-time expenditures related to recent acquisitions, the finalization of the share and warrant issuance, the completion of office build-outs and moving expenses, the Company achieved normalized EBITDA profit for the three and twelve-months ended December 31, 2010 of $551,561 and $619,144 respectively, compared to income of $48,434 and $63,828 for the three and twelve-months ended December 31, 2009.

The company's broader product offering, wider geographical footprint, focused integration efforts and complementary business activities have resulted in new revenue opportunities. During the quarter and fiscal year, management reviewed company-wide costs in order to streamline operations and maximize efficiency. Restructuring efforts have resulted in combined annualized expense reductions of approximately $600,000.

The company continues to pursue acquisitions within the point of sale and payments industries although none are specifically named at this time.

Annual Highlights and Summary

• During the second quarter of 2010, HDX acquired A&A Point of Sale Solutions Inc. ("A&A") in April, 2010, Posera Inc. ("Posera") in May, 2010 and Century Cash Register Inc. ("Century") in June, 2010. Revenues and earnings for the combined entity for the twelve-months ending December 31, 2010 includes nine, eight and seven full months for each of A&A, Posera, and Century respectively;

• Net Loss for the year-ended December 31, 2010 was a loss of $1,283,932, an increase of $652,071 from a loss of $631,861 for the year-ended December 31, 2009;

• EBITDA Loss for the year-ended December 31, 2010 was a loss of $22,447, a decrease of $244,186 from a loss of $266,633 for the year-ended December 31, 2009;

• Normalized EBITDA for the year-ended December 31, 2010 was $619,144, an increase of $555,316 from $63,828 for the year-ended December 31, 2009;

• Total revenue was $15,059,267 for the year-ended December 31, 2010, up $5,540,586 (58.2%) from $9,518,681 for the year-ending December 31, 2009;

• Gross margin was $10,716,283 for the year-ended December 31, 2010, up $4,838,037 (82.3%) from $5,878,246 for the year-ended December 31, 2009;

• Operating expenses were $10,738,730 for the year-ended December 31, 2010, up $4,593,851 (74.8%) from $6,144,879 for the year-ended December 31, 2009;

• Included in the operating expenses for the year-ended December 31, 2010 and December 31, 2009 were certain one-time non-recurring expenditures (recoveries) and non-cash stock-based compensation expense (recovery) totaling $641,591 and $330,461 respectively.

Non-GAAP Reporting Measures: Management reports on certain non-GAAP measures to evaluate performance of the Company. EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. While EBITDA has been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors are cautioned that EBITDA as reported by Posera-HDX may not be comparable in all instances to EBITDA as reported by other companies. For definitions of Non-GAAP measures, refer to the Company's annual management discussion and analysis for the fourth quarter and fiscal 2010.

Additional information on HDX fourth quarter 2010 financial results will be available in the financial reports filed by the Company with Sedar at [ www.sedar.com ] and posted to the Investor Relations section of the Company's website at [ www.dexit.com ].

About the Company

Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Posera-HDX Inc. develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 126 value added reseller partners in 25 countries with approximately 1,100 representatives selling, supporting & installing its software. Posera-HDX employs approximately 134 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.

Forward-Looking Statements

This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 24th, 2011 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.