Webtech Wireless Announces Q3 2013 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/14/13 -- Webtech Wireless Inc. (TSX: WEW) ("Webtech Wireless" or the "Company"), a leading provider of vehicle fleet location-based services and telematics technology, today announced its financial results for the three and nine month periods ended September 30, 2013.
The Company is reporting Adjusted EBITDA of $0.2 million and $1.8 million for the three and nine months ended September 30, 2013, and a net loss of $0.4 million and net income of $0.6 million from continuing operations, respectively.
Unless otherwise noted, figures quoted in this press release relate to the Company's business excluding the NextBus business, which was sold to Cubic Transportation Systems, Inc., a division of Cubic Corporation on January 24, 2013.
Q3 2013 and YTD 2013 Financial and Operational Highlights
"Q3 has traditionally been our slowest revenue quarter each year, so revenue and EBITDA results are in line with our expectations", said Scott Edmonds, President and CEO, continuing, "We are pleased with the growth in subscriber count and the overall mix of revenues from subscriptions and the overall increase in hardware margins we are producing. We are looking forward to the roll-out and market launch of the Webtech Drive Center in Q4 and in early 2014. With this product, we believe that we will be able to increase throughput and repeatable sales on a cost effective basis, increasing not just our overall revenue but more importantly, our subscriber count and recurring revenue each quarter".
Mr Edmonds continued, "Since the sale of the NextBus business in January 2013, the board of directors along with management have been actively considering options to maximize the value of the company, including determining the use of its excess cash. At the present time, we are focused on growing and improving the profitability of our current telematics operations and considering the best use of our available cash. The results of these deliberations will be reported to shareholders as soon as they are completed."
Financial Highlights of Continuing Operations
Revenue
Hardware revenues for the three and nine months ended September 30, 2013 increased 29% and 20%, respectively, over the prior comparable periods largely due to hardware deliveries to new and repeat customers and to the new owners of the recently sold NextBus business.
Recurring revenues were flat for the quarter and year to date compared to the prior periods. The Company has replaced the lost subscription revenue from the planned exit of the theft recovery vertical with new, higher ARPU subscribers from sales and implementations to both end users and enterprise customers over the past 12 months. The Company's shift away from hardware to a majority of subscription, software and services revenue continues to reflect management's focus on developing the Software as a Service ("SaaS") model. Excluding the theft recovery vertical, recurring revenues for the quarter and year to date increased 2% over the prior period.
Service and other revenues for the three and nine months ended September 30, 2013 decreased 23% and 8% respectively, over the prior comparable periods as a result of lower volumes of installations.
Gross Margin
Gross margin percentage for the three months ended September 30, 2013 was weaker compared to the prior comparable period due to a lower proportion of high margin recurring revenue in relation to total revenue. The improvement in the gross margin percentage for the nine months ended September 30, 2013 was driven by high margin hardware sales and the exit from and winding down of the theft recovery vertical which yielded historically low margins.
Operating Expenses
Operating expenses for continuing operations excluding depreciation and amortization, share-based payments and non-recurring items for the three and nine months ended September 30, 2013 increased 10% and were flat compared to the prior periods, respectively. The increase for the quarter was largely due to research and development projects primarily focused on the new Webtech Driver Center product and an increased sales and marketing spend.
Cash and Working Capital
As at September 30, 2013, the Company's unrestricted cash position amounted to $22.2 million compared with $21.3 million at June 30, 2013 and $4.3 million at December 31, 2012. In addition, the Company has $2.1 million USD in restricted cash related to the holdback from the NextBus transaction and $1.0 million USD in restricted cash used to secure a bonding facility with a US client.
As at September 30, 2013, the Company had net working capital of $26.4 million, compared with $9.6 million at December 31, 2012. As at November 12, 2013, Webtech Wireless had 105,471,783 common shares outstanding.
Non-GAAP Financial Measures
In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters. Details of such non-GAAP financial measures and how they are derived are provided in conjunction with the discussion of the financial information reported.
Results on a non-GAAP EBITDA basis are determined as follows:
Financial Statements and Management Discussion & Analysis
The Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2013 and the related Management Discussion & Analysis for the period has been filed on SEDAR at , and also on the Company's website at .
Notice of Conference Call
Webtech Wireless will hold a conference call today, November 14, 2013, at 11:00 am ET hosted by Mr. Scott Edmonds, President and Chief Executive Officer and Mr. Trevor Greene, Chief Financial Officer to discuss the Company's financial results and corporate developments. To access the conference call by telephone, dial +1.416.695-7806 or +1.888.789.9572, participant passcode 7860622. A taped replay of the conference call will be archived on the Company's corporate website at: .
About Webtech Wireless®
Webtech Wireless (TSX: WEW) is a leader in providing fleet management telematics, GPS and automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs. Our end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. Managers trust us to ensure people are accountable and vehicles are visible. Through the cloud, in the office, or straight to mobile devices, we deliver Fleet Intelligence Anywhere™. Our products are InterFleet®, for government winter maintenance, public works and waste management fleets; and Quadrant®, for commercial fleet operations and compliance (HOS, EOBR). Please visit .
All amounts in Canadian dollars (CAD$) unless otherwise noted. The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. Trademarks are the property of their owners.
Contacts:
Webtech Wireless Inc. - Investor Relations
Trevor Greene
Chief Financial Officer
+1 604.628.5195
Webtech Wireless Inc. - Press and Media
David Greer
Vice President Marketing
+1 604.628.5194
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Datum: 14.11.2013 - 11:00 Uhr
Sprache: Deutsch
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