- Oops!Something went wrong.Please try again later.
TORONTO, ON / ACCESSWIRE / November 18, 2021 / AirIQ Inc. ("AirIQ") (TSXV:IQ), a leader in wireless asset management services, today announced its financial results for the three months ended September 30, 2021, reporting a 25% increase in total revenue, a 9% increase in recurring revenue, an 8% increase in gross profits and a 38% increase in net income compared to the same period the prior year.
"We are pleased that we continue to achieve growth in our recurring revenue once again this quarter", stated Michael Robb, President and Chief Executive Officer of AirIQ. "The monthly recurring revenue has reached the highest level since reporting that metric and continues to be a key performance metric moving forward. In addition, we are making good progress on achieving the Rule of 40 target - which is the sum of recurring revenue percentage growth and EBITDA margin. This quarter, we achieved a score of 31 by this measure and are continuing to place more emphasis on recurring revenue growth going forward. The Company ended the quarter with very positive financial performance, despite the ongoing effects of COVID-19, the global microchip shortage and the 3G network shutdown in the United States scheduled for the end of February 2022", continued Mr. Robb, "I am very proud that our team has been able to work around these obstacles while delivering a strong quarter, including a solid cash balance of over $2 million and no debt."
All dollar amounts set out herein are in Canadian dollars.
Highlights for the year are as follows:
Second Quarter Highlights (for the three months ended September 30, 2021 compared to September 30, 2020)
Recurring revenue of $859,163 for the three months ended September 30, 2021 increased by 9% or $71,796 compared to $787,367 for the prior year period. Recurring revenue represented 73% of total revenue compared to 83% in the prior quarter.
Hardware and other revenue of $320,204 for the three months ended September 30, 2021 increased by 101% or $161,287 compared to $158,917 for the prior quarter. Hardware revenue represented 27% of total revenue compared to 17% in the prior year period.
Total revenue of $1,179,367 for the three months ended September 30, 2021 increased by 25% or $233,083 compared to $946,284 for the prior year period.
Gross profit of $684,961 for the three months ended September 30, 2021 increased by 8% or $52,628 compared to $632,333 for the prior year period.
Gross margin of 58% for the three months ended September 30, 2021 decreased by 9% compared to 67% for the prior year period, due to an increase in the percentage of hardware revenue.
EBITDAS of $259,996 for the three months ended September 30, 2021 decreased by 2% or $3,981 compared to $263,977 for the prior year period.
Net income of $230,752 for the three months ended September 30, 2021 increased 38% or $63,580 compared to $167,172 for the prior year period.
Cash balance of $2,274,989 for the three months ended September 30, 2021 increased by 14% or $283,557 compared to $1,991,432 for the prior year period.
Working capital of $2,725,147 for the three months ended September 30, 2021 increased by 16% or $366,910 compared to $2,358,237 for the prior year period. (Working capital has been calculated by netting current assets, excluding current costs of deferred revenues, and current liabilities, excluding deferred revenue that are non-cash items.)
The Company is focusing its efforts and resources on revenue growth and profitability by continuing to offer leading-edge technology solutions for existing and new customers. We continue to focus on recurring revenues, gross profits and improving cash-flows to build a sustainable business and managing the effects of COVID-19.
Normal Course Issuer Bid
The Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the "Bid") with the TSX Venture Exchange ("TSXV") commencing April 13, 2021 and ending on April 12, 2022. Pursuant to the Bid, the Company proposed to purchase through the facilities of the TSXV up to 1,504,253 common shares, representing approximately 5% of the then issued and outstanding common shares of the Company. The Company's broker for the Bid is Hampton Securities Limited.
During the three and six months ended September 30, 2021, the Company purchased 95,500 and 294,000, respectively, common shares under the Bid for a total of $28,160 and $81,755, respectively, or $0.29 and $0.28, respectively, per common share (three and six months ended September 30, 2020 - nil common shares were purchased), plus an additional $955 and $2,940, respectively, in broker fees were paid for the repurchase of the shares (three and six months ended September 30, 2020 - $nil and $nil, respectively).
Subsequent to the quarter end in October and early November, 2021, the Company repurchased for cancellation an additional 114,000 common shares under the Bid for a total of $34,200, or $0.28 per common share, and additional broker fees in the amount of $1,140 were paid for the repurchase of the shares.
Stock Option Plan
During the six months ended September 30, 2021, options for a total of 150,000 common shares in the capital of the Company were exercised for an aggregate consideration of $22,500, and 150,000 common shares were issued from treasury.
As of September 30, 2021, the Company had a total of 29,941,074 common shares issued and outstanding, and as of the date of this press release there are 29,827,074 common shares issued and outstanding.
The Company's unaudited consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
Financial Statements & MDA
The Company's consolidated condensed interim financial statements for the three and six months ended September 30, 2021 and 2020 including notes thereto, and Management's Discussion and Analysis for the same period are being filed with the Canadian securities regulatory authorities on today's date, and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com). The Company's financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
AirIQ (TSXV: IQ) was founded in 1997 and is a pioneer in IoT based asset management solutions. AirIQ's solutions allow commercial businesses to reliably, effectively and efficiently monitor assets in near real time. The Company develops iOS and Android mobile and web-based applications, and cloud-based solutions that stand-alone or that can be readily integrated with existing software. AirIQ solutions are mixed fleet capable and provide fleet reporting, maintenance, compliance, safety and analytics utilizing multiple hardware options including a fully integrated video telematics camera solution and a battery powered solution for non-powered assets. . For additional information on AirIQ please visit the Company's website at www.airiq.com or follow us on LinkedIn, Facebook and Twitter.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.
* * *
For more information please contact:
AirIQ Inc., Michael Robb, President and Chief Executive Officer, (905) 831-6444, email@example.com
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.
SOURCE: AirIQ Inc.
View source version on accesswire.com: