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TORONTO, Nov. 27, 2018 /CNW/ -- Quisitive Technology
Solutions Inc. (Quisitive or the "Company") (TSXV: QUIS), a
premier Microsoft solutions provider, announced today that it is on
target posting third-quarter revenue of $3,234,208.
Fusion Agiletech Partners Inc. ("Fusion Canada") formed in
2017 to act as a consolidator in the Microsoft partner ecosystem
and invest in emerging technology. In January 2018, the Company raised capital through
private placement and in February
2018 purchased Quisitive, LLC, a premium Microsoft solutions
provider. Results today reflect Fusion's operations since February
2018. Fusion Canada completed an RTO with Nebo Capital
Corporation effective August 8, 2018
and the resulting company has changed its name to Quisitive
Technology Solutions Inc.
"It has been a transformational quarter whereby the company is
now listed on the TSXV and has built the foundation for our
consolidation platform completing our first acquisition in February
2018. We have sourced potential acquisition targets, pending
financing, to potentially close in early 2019. I am pleased
with the progress we have made this quarter," said Stephanie Ratza, CFO.
Financial Highlights:
- Revenue for the three months ending September 30, 2018 was $3,234,208, a 5.5% increase from the three months
ending June 30, 2018 of $3,056,458. We are embracing new customers' wins
this quarter and have developed a strong pipeline for our fourth
quarter. There is no comparable revenue for September 30, 2017.
- Revenue was $7,586,189 for the
nine months ended September 30th,
2018. There are no comparable periods for September 30, 2017.
- Gross profit for the three months ending September 30, 2018 increased to $1,078,420 or 3.3% from $1,043,713 in the second quarter ending
June 30, 2018. As a percentage, gross
profit was 33.3% compared to 34.1% in the second quarter of
2018. There is no comparable gross profit for September 30, 2017.
- Gross profit for nine months ending September 30 30, 2018 was $2,551,804 or 33.6%. There are no comparable
gross profits for nine months ending September 30, 2017.
- Net loss for the three months ending September 30, 2018 was $3,749,609 which represents a $0.05 loss per share. During the quarter,
with the completion of the RTO, the Company expensed $2,780,736 associated with the Listing fees of
the RTO. The Amalgamation with Nebo allowed the former Fusion
Canada, a private company, to obtain a listing on the TSX-V without
having to go through the initial public offering process. As
the acquisition was not considered a business combination, a total
of $2,780,736 (non-cash), being the
excess of fair value of the consideration paid to obtain the
listing over the net assets (liabilities) received (assumed) is
expensed for the three and nine months ended September 30, 2018.
- Net loss for the nine months ending September 30, 2018 was $4,965,294 which represents a $0.08 loss per share.
- Adjusted EBITDA loss for the three months ending September 30, 2018 was ($649,111) or (20.1%) of revenue.
- Adjusted EBITDA loss for the nine months ending September 30, 2018 was ($842,182) or (11.1%) of revenue.
- The company incurred $42,920 in
acquisition related expenses in the three months ending
September 30, 2018 compared with
$68,691 incurred in the three months
ending June 30, 2018.
Acquisition related expenses for the nine months ending
September 30, 2018 was $266,611. The company is actively pursuing
its consolidations strategy.
"Over the last quarter, Quisitive has shown focused execution
against our two core Go-To-Market strategies; Emerging Technologies
and the Azure Accelerator Program, resulting in the acquisition of
net-new customers and the build of a robust pipeline. These focused
tactics are positioning us well to finish out the year strong and
more importantly creating the right volume to start F2019
positively. With the competitive options available in today's
cloud computing environment and the pressure on IT to innovate and
optimize, our prospects and clients are evaluating a move to the
cloud very diligently, resulting in an average of a 4-month
decision making window. The momentum we have driven in Q3 coupled
with the trends we are seeing around time to action, gives us
confidence in the quality of our Q4 and FY2019 Q1 pipeline to drive
significant revenue impact," Mike
Reinhart, CEO.
BUSINESS UPDATE
During the third quarter, Quisitive achieved the following
milestones:
- The Company announced the completion of the RTO on August 8, 2018 and is now trading under the
symbol TSXV: QUIS.
- The Company was selected as a 2018 Microsoft US Partner of the
Year Finalist and recognized as a top Microsoft partner
demonstrating excellence in innovation and implementation of
customer solutions based on Microsoft technology. Finalist and
award winners represent the best and most forward-thinking
innovators coming out of the Microsoft partner community
- The Company has seen dramatic growth in customers looking to
evaluate the benefits of the Microsoft cloud.
-
- 183% increase in customer assessment engagements via
Quisitive's proprietary Azure Accelerator program.
- The Company has developed a strong pipeline of Microsoft cloud
consumption and Quisitive cloud migration services to drive revenue
growth in future periods.
- Secured follow-on projects that include Office 365, Azure
DevOps and Azure Migration.
- Actively engaged with 19 new customers across Microsoft's key
market segments; Financial Services and Healthcare.
- Expansion of Quisitive Azure Accelerator Program into Canadian
market including strategic assessment win at a top 5 national
bank.
- Microsoft selected the Company to participate as a speaker at
the Microsoft Oil and Gas Innovation Summit hosted at Baker Hughes.
The Company spoke on key scenarios that Microsoft Azure and
blockchain could be applied to within midstream oil and gas sector
showcasing the Quisitive Oil and Gas Blockchain Proof of
Concept.
- The Company was featured in an article titled 'Quisitive and
the Quest to Become the Perfect Microsoft Partner,' further
validating the vision to create North
America's premiere Microsoft solutions provider.
Subsequent to Third Quarter of Fiscal 2018:
- The Company announced the approval and completion of a
$2,500,000 credit facility.
- The Company announced the build of Children's Hospital Colorado
Telehealth Photo System and the release of the whitepaper. This
mission-critical application showcases the robust functionality of
the Microsoft cloud fabric and how it is modernizing patient care
through the ability to share photos and videos between consulting
physicians.
- The Company was a featured speaker in the following events,
showcasing the power of the Microsoft cloud, blockchain, artificial
intelligence and the Internet of Things:
-
- Coach and speaker at the University of
Arkansas Blockchain Hackathon
- Speaker at Northwest Arkansas Women in Technology Summit
- The Company was featured in media coverage, comparing
Quisitive's emerging technology capabilities to Accenture and
Deloitte.
The Company's unaudited condensed consolidated interim financial
statements as at and for the three and nine months
ended September 30th, 2018 and related management's discussion
and analysis can be found on the Company's website and
at www.sedar.ca. All figures are expressed in
United States dollars unless
otherwise stated.
Conference Call Access
To access the conference call
by phone, please dial the following numbers.
Canada/United States: 1-800-319-4610
Toronto Toll: 1-416-915-3239
We will start the call promptly at 8:30am
EST November 27, 2018.
Please dial in 10 minutes prior to the scheduled start time and ask
to join the Quisitive Technology Solutions call.
We encourage you to access the presentation material in the
Investors section of Quisitive's website
at https://quisitive.com/investor-relations/.
About Quisitive:
Quisitive is a premier Microsoft solutions provider that helps
customers navigate the ever-changing technology climate that their
business relies upon. With a legacy of innovation and deep
technical expertise, Quisitive is empowering the enterprise to
harness the Microsoft cloud and emerging technologies such as
blockchain, artificial intelligence (AI), machine learning, and the
Internet of Things (IoT) through customized solutions and
first-party cloud-based products.
Quisitive is uniquely comprised of former Microsoft leaders and
technologists who share a deep understanding of market needs and
the appropriate application of Microsoft cloud technology.
Quisitive serves clients globally with offices in Dallas, TX, Denver,
CO and Toronto, Ontario.
For more information, visit http://www.Quisitive.com or follow
@BeQuisitive.
Reconciliation of Non-GAAP Financial Measures - Adjusted
EBITDA and Adjusted EBITDA as a percentage of revenue
Adjusted EBITDA
We prepare and release quarterly unaudited and annual audited
financial statements prepared in accordance with IFRS. We also
disclose and discuss certain non-GAAP financial information, used
to evaluate our performance, in this and other earnings releases
and investor conference calls as a complement to results provided
in accordance with IFRS. We believe that current shareholders and
potential investors in our company use non-GAAP financial measures,
such as Adjusted EBITDA and Adjusted EBITDA as a percentage of
revenues, in making investment decisions about our company and
measuring our operational results.
The term "Adjusted EBITDA" refers to a financial measure that we
define as earnings before certain charges that management considers
to be non-operating expenses and which consist of interest, taxes,
depreciation, amortization, stock-based compensation (for which we
include related fees and taxes), acquisition-related expenses and
listing expense. Adjusted EBITDA as a percentage of revenues
divides Adjusted EBITDA for a period by the revenues for the
corresponding period and expresses the quotient as a
percentage.
Management considers these non-operating expenses to be outside
the scope of Quisitive' ongoing operations and the related expenses
are not used by management to measure operations. Accordingly,
these expenses are excluded from Adjusted EBITDA, which we
reference to both measure our operations and as a basis of
comparison of our operations from period-to-period.
Management believes that investors and financial analysts
measure our business on the same basis, and we are providing the
Adjusted EBITDA financial metric to assist in this evaluation and
to provide a higher level of transparency into how we measure our
own business. However, Adjusted EBITDA and Adjusted EBITDA as a
percentage of revenues are non-GAAP financial measures and may not
be comparable to similarly titled measures reported by other
companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of
revenues should not be construed as a substitute for net income
determined in accordance with IFRS or other non-GAAP measures that
may be used by other companies, such as EBITDA. The use of Adjusted
EBITDA and Adjusted EBITDA as a percentage of revenues does have
limitations. As these acquisition-related expenses charges may
continue as we pursue our consolidation strategy, some investors
may consider these charges and expenses as a recurring part of
operations rather than expenses that are not part of
operations.
Reconciliation of
Adjusted EBITDA loss
|
|
3
months
September 30,
2018
|
|
9
months
September
30,
2018
|
Net loss for the
period
|
$
|
(3,749,609)
|
$
|
(4,965,294)
|
Adjustments to
reconcile to Adjusted EBITDA
|
|
|
|
|
Income tax
expense
|
|
-
|
|
446,900
|
Interest
expense
|
|
175,101
|
|
316,290
|
Amortization
|
|
9,219
|
|
33,967
|
Depreciation
|
|
33,996
|
|
78,577
|
Share-based
compensation
|
|
58,526
|
|
200,031
|
Listing
expense
|
|
2,780,736
|
|
2,780,736
|
Acquisition related
expenses
|
|
42,920
|
|
266,611
|
Adjusted EBITDA
loss
|
|
(649,111)
|
|
(842,182)
|
Adjusted EBITDA
loss as a percentage of revenue
|
|
(20.1%)
|
|
(11.1%)
|
Adjusted EBITDA for the quarter ending September 30, 2018 was a loss of $649,111 or (20.1%). Adjusted EBITDA for the
nine-months ending September 30, 2018
was a loss of $842,182. The
Company is investing in consulting practice of emerging
technologies, investing in investor relations functions and
continues to investigate acquisitions potentials.
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.
Forward-Looking Statements: Some statements in this news
release contain forward-looking information. These statements
include, but are not limited to, statements with respect to
proposed activities, consolidation strategy and future
expenditures. These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
statements. Such factors include, among others the limited
history of operations, lack of profitability, availability of
financing, the need for additional financing and the timing and
amount of expenditures, ability to successfully execute on
consolidation strategies, the failure to find economically viable
acquisition targets, funding for internally developed technology
solutions, client retention and attrition, client demands, reliance
on key personnel, economic spending in the IT industry and
technological changes in the IT industry. Quisitive
Technology Solutions Inc. does not assume the obligation to update
any forward-looking statements.
SOURCE Quisitive Technology Solutions Inc.