Press release from Marketwire
Zedi announces Q4 and Year End 2011 financial results
Tuesday, February 28, 2012
Zedi announces Q4 and Year End 2011 financial results20:02 EST Tuesday, February 28, 2012CALGARY, ALBERTA--(Marketwire - Feb. 28, 2012) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) "The Q4 financial results top off a banner year for Zedi where we set revenue records in each of the four quarters. Executing well on all fronts, we held our own in a tough Canadian market by maintaining our core technology revenues and recording 37% growth in field operations. We grew the recurring revenue from our international operations by 57% in 2011, establishing a strong base upon which we can build outside of North America. To round out the exceptional performance, the acquisitions we made in 2011 have all delivered significant growth. All of this would not be possible without the support and commitment from our customers, our employees and our shareholders and for that we are sincerely grateful. I am confident we are on the right path to become a global leader in production operations management," said Matthew Heffernan, Zedi President & CEO. The annual 2011 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.Revenues for Q4 2011 were $24,996,000 compared to $15,438,000 for Q4 2010, representing an increase of 62% for the quarter and bringing 2011 annual revenues to a total of $90,922,000, which is a 57% increase over 2010 revenues of $57,751,000. On an annualized basis, EBITDA(1) per share was $0.13 in 2011, $0.09 in 2010 and $0.05 in 2009. For the year 2011, EBITDA was $13,242,000, a 55% increase over the $8,572,000 posted in fiscal 2010, attributable to solid performance by Southern Flow, the new US subsidiary, and supported domestically by the above-mentioned increase in field operations and five additional acquisitions. All acquisitions were revenue and earnings accretive and completed with no equity dilution. Profit before taxation for Q4 2011 was $1,817,000 or $0.02 per common share resulting in 2011 annual profit before taxation of $6,654,000 or $0.07 per common share, an increase of 28% over the prior year. Operations continue to generate strong cash flow, with cash from operations prior to working capital changes of $14,040,000 generated in 2011, up 60% compared to $8,800,000 during 2010. Closing working capital for December 31, 2011 remains very strong at $14,224,000.Recurring revenue for Q4 2011 was 205% of operations expenses, up from 180% in Q4 2010. Recurring revenue as a percentage of the Company's total cash expenditures, which in addition to operations expenses includes deferred development and capital asset purchases, increased to 171% for Q4 2011 up from 150% in Q4 2010. The Company believes that these two measures are significant indicators of performance and sustainability.Zedi Inc. (TSX VENTURE:ZED) provides integrated services, applications, and technology to oil and gas producers to help efficiently manage their production operations. Having established a leadership position in our base market, we continue to grow globally by operating in 25 countries around the world. Our expertise helps producers increase revenue while reducing operating costs and ensuring regulatory compliance.1 EBITDA is a non-IFRS measure that is commonly used by industry to normalize non-operating factors that are included in net income. EBITDA is Earnings before interest, taxes, depreciation and amortization. See section 10 of the Management Discussion and Analysis for further detail. Cautionary Statement Regarding Forward-Looking InformationCertain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's growth expectations, acquisition activity, strategies, recurring revenue metrics and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Debra DeaneZedi Inc.Investor Relations403-802-7092403-444-1101 (FAX)firstname.lastname@example.orgNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.