Quorum Reports Q3 2021 and YTD Financial Results
25 November 2021 - 9:00AM
Quorum Information Technologies Inc. (QIS:TSXV)
(QuorumInformationSystems.com), a SaaS software and services
company that provides essential software that vehicle dealerships
rely on for operations throughout North America, today reported Q3
2021 and year-to-date financial results for the third quarter
ending on September 30, 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 happy to report record total revenue and
are pleased with our overall revenue growth for this quarter, which
was well balanced between adding new rooftops and cross-selling new
software and services to current clients,” stated CEO Maury Marks.
“With ongoing supply chain challenges, emerging online sales
channel opportunities, and expanding competition, our vehicle
dealership clients need our software to protect and grow their
business while maximizing profits. We are encouraged by current
market conditions and total addressable market available to Quorum
Information Technologies solutions.”
Consolidated Results for Q3, 2021 &
Year-to-Date
|
Q3
2021 |
%
Change |
Q3
2020 |
|
YTD
2021 |
%
Change |
YTD
2020 |
Total Revenue |
$ |
9,201,600 |
|
14% |
$ |
8,085,348 |
|
|
$ |
26,830,594 |
|
19% |
$ |
22,539,580 |
|
Recurring
Revenue |
$ |
8,976,508 |
|
15% |
$ |
7,778,853 |
|
|
$ |
26,079,167 |
|
21% |
$ |
21,631,691 |
|
Gross
Margin |
$ |
4,307,880 |
|
18% |
$ |
3,659,992 |
|
|
$ |
12,093,433 |
|
21% |
$ |
9,973,961 |
|
Gross Margin % |
|
47 |
% |
|
|
45 |
% |
|
|
45 |
% |
|
|
44 |
% |
Total
Operating Expenses |
$ |
4,470,561 |
|
21% |
$ |
3,681,373 |
|
|
$ |
12,966,077 |
|
15% |
$ |
11,277,639 |
|
EPS
(Loss) |
-$ |
0.002 |
|
|
-$ |
0.005 |
|
|
-$ |
0.010 |
|
|
-$ |
0.019 |
|
Net
Loss |
-$ |
143,930 |
|
60% |
-$ |
358,296 |
|
|
-$ |
696,103 |
|
50% |
-$ |
1,383,568 |
|
Adjusted EBTIDA |
$ |
1,451,712 |
|
-1% |
$ |
1,464,650 |
|
|
$ |
3,846,083 |
|
13% |
$ |
3,410,823 |
|
Adjusted Cash Income 2 |
$ |
726,303 |
|
-24% |
$ |
961,756 |
|
|
$ |
1,766,037 |
|
6% |
$ |
1,661,315 |
|
Q3 2021 Financial and Business Highlights
- Total revenue
increased by 14% to $9.2 million in Q3 2021 compared to $8.1
million in Q3 2020.
- SaaS revenue
increased by 11% to $6.6 million in Q3 2021 compared to $5.9
million in Q3 2020.
- Recurring
services revenue (BDC) revenue increased by 30% to $2.4 million in
Q3 2021 compared to $1.9 million in Q3 2020. Strength in this
category was driven by new solution features and by a strategic
partnership with AutoCanada.
- Recurring
revenue was 97% of total revenue for the quarter compared to 96%
reported in Q3 last year.
- Total Annual
Recurring Revenue (ARR) from SaaS of $26.2 million as of September
30, 2021.
- Total annual
recurring services revenue (BDC) of $9.7 million as of September
30, 2021.
- Gross margin
increased to $4.3 million and 47% of total revenue in Q3 2021
compared to $3.7 million and 45% of total revenue for Q3 2020.
Gross margin increased by 18% as compared to Q3 last year, growing
at a faster pace than revenue growth which is a result of scaling
the business.
- Adjusted EBITDA
margin was 16%, down from 18% reported in the previous Q3.
- Including cash
of $7.5 million, total net working capital as of September 30, 2021
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 its BDC Capital Loan
facility in April 2021.
- SaaS-based operational KPIs are as
follows:
|
Q3 2021 |
Q2 2021 |
Q3 2020 |
YoY Growth |
Sequential Growth |
Dealer Rooftop Count - Canada |
904 |
898 |
882 |
2% |
1% |
Dealer Rooftop Count - US |
128 |
127 |
129 |
- |
- |
Dealer Rooftop Count - Total2 |
1,032 |
1,025 |
1,011 |
2% |
1% |
MRRPU |
$2,116 |
$2,091 |
$1,950 |
9% |
1% |
Monthly recurring revenue per unit (MRRPU)
implies that, as of the end of Q3, 2021, each dealership (Dealer
Rooftop) represents approximately $25.4K of SaaS ARR.
Conference Call Details
Maury Marks, President and Chief Executive
Officer and Marilyn Bown, Chief Financial Officer will present the
Q3 2021 Quarterly Results at a conference call with concurrent
audio webcast, scheduled for:
Date: |
Thursday,
November 25, 2021 |
|
|
Time: |
11:00 am MT |
|
|
Dial-In #: |
Toll-Free North America: 1 (844) 967-3741 |
|
|
Webcast Link: |
Q3 2021 Quarterly Results Conference Call (Webcast) |
|
|
The Q3 2021 Quarterly Results Investor
Presentation, a replay of the conference call, and transcripts of
the conference call will also be available at
www.QuorumInformationSystems.com.
About Quorum Information Systems
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 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.
Quorum Information Technologies Inc.
Contacts:
Maury Marks
President and Chief Executive Officer
403-777-0036
Maury.Marks@QuorumInfotTech.com
Marilyn Bown
Chief Financial Officer
403-777-0036
Marilyn.Bown@QuorumInfotTech.com
Investor Relations Contact
Ron Shuttleworth
Partner
Oak Hill Financial
647-500-7371
rshuttleworth@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.
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 Cash
Income (non-GAAP) – Adjusted EBITDA less capitalized salaries and
overhead.2 Dealer Rooftop Count – Total for Q3 2020 has been
adjusted to correct prior period Dealer Rooftop Count – Canada.
Dealer Rooftop Count – Total and MRRPU were previously reported as:
Q3 2020 total rooftop count of 1,045 and MRRPU of $1,886.
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