Software as a Service ("SaaS") revenue of $22.1 million
Business Development Centre ("BDC") revenue of $7.5 million
Adjusted EBITDA1 of $4.9 million
CALGARY, Alberta, April 21, 2021 (GLOBE NEWSWIRE) -- Quorum Information Technologies Inc. (TSX Venture: QIS) ("Quorum"), a leading provider of innovative and robust technology solutions and services to traditional and electric vehicle dealerships and Original Equipment Manufacturers ("OEM") across North America, released its results for 2020 today.
"COVID-19 presented a number of challenges in 2020 for the automotive industry. Despite the challenges, Quorum had a strong year posting a record Adjusted EBITDA1," stated Maury Marks, President and CEO. "One-time, COVID-19 related Q2 customer discounts of $1.5 and $0.2 million for SaaS and BDC respectively resulted in a SaaS revenue decrease of 1% and BDC revenue increase of only 9% in 2020 compared to 2019. In Q4, Quorum reported a record SaaS revenue quarter as both SaaS and BDC revenue increased in Q4 over Q3 by 2% and 5% respectively, which equates to 8% and 20% when annualized."
"With the Q3 addition of MyDeal and PowerLane solutions to our product suite, Quorum continues to be a leader in transforming automotive digital operations," continued Marks. "These new solutions allow dealership consumers to buy a vehicle online and to have a touchless service experience. We expect these solutions to help increase our ?share of wallet' going forward."
"I would especially like to acknowledge our employees and customers who helped Quorum to navigate the challenges in these unprecedented times," added Marks. "Our employees are the driving force behind our strong 2020 results and their continued innovation ensures Quorum has a product suite prepared for the future of automotive."
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.
Fourth Quarter Results
Fiscal Year 2020 Results
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
|Services and one-time revenue||1,234||3,690||326||1,119|
|Cost of revenue||17,202||17,618||4,637||4,944|
|Margin after direct costs||13,654||15,223||3,680||3,759|
|Gross margin percentage||44||%||46||%||44||%||43||%|
|Adjusted cash income2||2,477||1,754||815||294|
2 Adjusted Cash Income ("ACI") (non-GAAP) ? Adjusted EBITDA less capitalized salaries and overhead.
2020 Business Highlights
Quorum 2020 Results Conference Call Details and Investor Presentation
Maury Marks, President and Chief Executive Officer and Marilyn Bown, Chief Financial Officer will present the Year End 2020 Annual Results at a conference call with concurrent audio webcast, scheduled for:
|Date:||Thursday, April 22, 2021|
|Time:||9:00 am MST|
|Dial-In #:||Toll-Free North America: 1 (844) 967-3741|
|Webcast Link:||2020 Year End Results Webcast|
The Year End 2020 Results Investor Presentation, a replay of the conference call and transcripts of the conference call will also be available under the Investors section at www.QuorumInformationSystems.com.
Forward Looking Information
This report contains certain forward-looking information and statements within the meaning of applicable securities laws. All statements in this report, other than statements of historical fact, which address events or developments concerning Quorum Information Technologies Inc. ("Quorum" or the "Corporation") that Quorum expects to occur are "forward-looking information and statements". The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "potential", "could", "scheduled", "believe", "plans", "intends", "might" and similar expressions are intended to identify forward-looking information or statements.
In particular, but without limiting the foregoing, this document may contain forward-looking information and statements pertaining to the following: business plan of Quorum including its plans for targeting new Original Equipment Manufacturer ("OEM") integration, new dealership rooftop sales, and increasing Automotive Group Partnerships; the timing for completion and cost of OEM integration; estimates of return on assets and Adjusted EBITDA1; potential merger and acquisition ("M&A") opportunities; the timing of adoption of new accounting standards and the potential impact of new accounting standards on the Corporation's financial statements; the effect of acquisitions on the Corporation including the effect of the Autovance, DealerMine and Oasis acquisitions; the effect of the BDC Capital facility; the effect of the Corporation's private placement financing; the effect of the COVID-19 pandemic on industry activity and economic activity in North America as a whole; various industry activity forecasts; growth opportunities including those in the United States; anticipated requirements by OEM manufacturers relating to integrations and certifications; and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking statements throughout this report. The forward-looking information and statements contained in this report reflect several material factors, expectations and assumptions including, without limitation: (i) capital expenditures by dealers; (ii) market availability of current and future dealership rooftops; (iii) schedules and timing of certain projects and Quorum's strategy for growth; (iv) Quorum's future operating and financial results; and (v) treatment under governmental regulatory regimes and tax and other laws. The forward-looking information and statements included in this report are not guarantees of future performance and should not be unduly relied upon.
Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking information and statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: (i) volatility in exchange rates for the Canadian dollar relative to the US dollar; (ii) liabilities and risks inherent in the software services industry; (iii) competition for, among other things, capital and skilled personnel; (iv) changes in general economic, market and business conditions in Canada and the United States; and (v) actions by governmental or regulatory authorities including changes in income tax laws or changes in tax laws. Quorum cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this document speak only as of the date of this document, and Quorum assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any financial outlook or future-oriented financial information in this document, as defined by applicable securities legislation, has been approved by management of Quorum. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
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 has filed its 2020 audited consolidated financial statements and notes thereto as at and for the year ended December 31, 2020, 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.
Contact: Maury Marks
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