GUELPH, ONTARIO -- (Marketwire) -- 11/24/10 -- Texada Software Inc. ("Texada") (TSX VENTURE: TXS), the premier provider of equipment rental and mobile asset management software, announces today its unaudited interim financial results for the third quarter and nine month period ended September 30, 2010.
The three month period ended September 30, 2010 marked the seventh consecutive quarter of profitability for Texada resulting in net earnings for the first nine months of 2010 of $0.29 Ml. compared to $0.21 Ml. in 2009, an improvement of 35%. The Company achieved an improvement in net earnings year over year for the nine month period of 93% after removing the effect of the lease settlements gains realized in 2009 as outlined below.
For the quarter ended September 30, 2010, the Company generated total revenues of $1.05 Ml. and net earnings of $0.04 Ml. Adjusted EBITDA (defined as net earnings (loss) for the period adjusted for amortization, accretion on convertible debt, interest expense, foreign exchange loss (gain), stock based compensation expense and gain on lease settlement) was $0.14 Ml.
Revenues declined by 6.0% in the quarter and 1.4% in the nine month period compared to 2009. Operating expenses for the nine month period were virtually the same as the prior year and up 5.6% for the current quarter. An increase in the proportion of total revenue from licenses versus services and a resulting decline in cost of revenue in the nine month period resulted in an Adjusted EBITDA improvement of $0.15 Ml. in 2010. Non-operating expenses increased by $0.08 Ml. year to date due to an expense reduction of $0.06 Ml. being recorded in 2009 for a gain on the settlement of property leases which were not repeated in the current year.
"We continue to be pleased with our operating results which on an Adjusted EBITDA basis are improved considerably compared to 2009 despite the ongoing difficult environment in the equipment rental industry" commented Texada's President, Brian Spilak. "We see some signs of some improvement in outlook in our key markets and are hopeful that 2011 will show a more robust level of activity for software expenditures in our marketplace."
Incoming Chief Executive Officer Willie Swisher commented, "I look forward to working with Brian and his team in assisting them in any way I can to expand our business. They are to be commended for their efforts and results over the past seven quarters and we look forward to the balance of 2010 and into 2011 with optimism for our current business and the expansion initiatives recently announced, for which I am excited to have rejoined the Company to spearhead."
The Company's financial results are presented below:
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Thousands of Canadian
Dollars (except per Three Months Ended Nine Months Ended
share amounts) September 30, September 30,
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2010 2009 2010 2009
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Revenue $ 1,052 $ 1,119 $ 3,373 $ 3,422
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Operating Income
(Adjusted EBITDA) 138 188 553 402
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Net Earnings for the
Period 44 81 286 211
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Net Earnings per Share $ 0.005 $ 0.01 $ 0.033 $ 0.024
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More information may be found at www.sedar.com
About Texada Software Inc. (TSX VENTURE: TXS)
Texada Software Inc. is the premier provider of enterprise software solutions for equipment rental and mobile equipment. Texada's solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support.
Texada's market-driven software products combine knowledge and best practices from over 5,000 users worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal. The Company's customers enjoy the many benefits of this enhanced efficiency through better asset utilization, effective location tracking, and optimized scheduling.
Texada can be reached at 1-800-361-1233 or 1-519-836-7073, or on the internet at www.texadasoftware.com.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors Texada's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Corporate communications contact: Texada Software Inc.
Jim McInnis
Chief Financial Officer
1-800-361-1233 x - 2104
jmcinnis@texadasoftware.com
