DEQ Reports Record Quarterly Revenue of $2.1 Million
LAS VEGAS, NV and LEVIS, QC, April 29, 2015 /PRNewswire/ - DEQ Systems Corp. (TSXV: DEQ) ("DEQ" or the "Company") announces the filing of its first quarter financial results for the period ended February 28, 2015. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website. A conference call will be held on Thursday, April 30, 2015 at 4:30pm EDT to present and discuss these results. Those interested in participating in the call should dial toll free 1 (877) 223-4471 or (647) 788-4922.
2015 FIRST QUARTER RESULTS HIGHLIGHTS:
Financial Metrics
- Revenue
- 15% increase in Proprietary Table Games from $529,000 in the first quarter of 2014 to $606,000 in the first quarter of 2015.
- 18% increase in gross profit from $1,533,000 to $1,809,000 in Q1-2015
- Liquidity and Cash Flow
- DEQ increased its cash position by $288,000 from $1,654,000 as of November 30 to $1,942,000 as of February 28, 2015, 2014, an increase of 17%.
- Operating activities generated cash flow of $312,000 in Q1-2015 compared to negative cash flow from operating activities of $23,000 in Q1-2014.
- EBITDA
- Stable EBITDA of $199,000 in Q1-2015 compared to $201,000 in Q1-2014.
Operational Highlights
- As of February 28, 2015, DEQ had 2,251 units worldwide (1,896 units installed directly and 355 units installed by our distributors) compared to 2,089 units worldwide as of February 28, 2014.
- During the first quarter of 2015, a total of 66 net units were installed compared to net installations of 32 units in the prior year first quarter. The Company is generating an average recurring revenue of $3,520 per unit per year, up slightly from $3,516 in last year first quarter.
"DEQ continues to execute our growth plan, manage our cash and we are prudently re-investing in our business" stated Joe Bertolone, President and Chief Executive Officer of DEQ. "Our Asian partnership is beginning to pay off with installations in Cambodia, Korea and Australia where we are breaking new ground. Our deployments in Cambodia and Australia are the first for DEQ in these countries. These are beachhead installations that will lead to more business in these regions. Our EBITDA remains on track as compared to a year ago, as we continue to expand our revenue base."
| Statement of Earnings |
|||||||
| First Quarter |
Twelve-Month Period |
||||||
| February 28, 2014 |
February 28, 2015 |
February 28, 2014 |
February 28, 2015 |
||||
| (unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
||||
| Table Systems |
1,307,000 |
1,375,000 |
4,941,000 |
5,218,000 |
|||
| Proprietary Table Games |
529,000 |
606,000 |
2,073,000 |
2,306,000 |
|||
| Total recurring revenue |
1,836,000 |
1,981,000 |
7,014,000 |
7,524,000 |
|||
| Non recurring revenue |
41,000 |
141,000 |
268,000 |
262,000 |
|||
| Total Revenue |
1,877,000 |
2,122,000 |
7,282,000 |
7,786,000 |
|||
| Gross Profit (1) |
1,630,000 |
1,888,000 |
6,183,000 |
7,065,000 |
|||
| % Gross margin |
87% |
89% |
85% |
91% |
|||
| Operating expenses (1) |
1,429,000 |
1,689,000 |
5,420,000 |
5,940,000 |
|||
| EBITDA (2) |
201,000 |
199,000 |
763,000 |
1,125,000 |
|||
| Stock based compensation |
7,000 |
8,000 |
156,000 |
21,000 |
|||
| Amortization expenses |
661,000 |
652,000 |
2,767,000 |
2,744,000 |
|||
| Interest expenses |
2,000 |
2,000 |
12,000 |
10,000 |
|||
| Foreign exchange (gain) loss |
(33,000) |
(309,000) |
15,000 |
(120,000) |
|||
| Net Income (Loss) |
(436,000) |
(154,000) |
(2,187,000) |
(1,530,000) |
|||
| Net Income (Loss ) per share |
$(0.006) |
$(0.002) |
$(0.031) |
$(0.040) |
|||
| Note 1: |
Gross profit and operating expenses excluded non-cash items such as depreciation, amortization and stock-based compensation. |
| Note 2: |
DEQ uses EBITDA (Earnings before stock based compensation, Interest, Taxes, Depreciation and Amortization and foreign exchange impact), a non-IFRS measure, to evaluate the Company's operating performance. Securities regulators require that issuers caution readers that measures adjusted to a basis other than IFRS do not have standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. |
| Financial Position |
|||||
| February 28, 2014 |
November 30, 2014 |
February 28, 2015 |
|||
| (unaudited) |
(audited) |
(unaudited) |
|||
| Cash and cash equivalents |
1,451,000 |
1,654,000 |
1,942,000 |
||
| Current assets (other than cash) |
1,381,000 |
1,571,000 |
1,879,000 |
||
| Long-term assets |
6,998,000 |
5,479,000 |
4,873,000 |
||
| Total Assets |
$9,830,000 |
$8,704,000 |
$8,694,000 |
||
| Current liabilities |
1,170,000 |
1,275,000 |
1,555,000 |
||
| Shareholders' equity |
8,660,000 |
7,429,000 |
7,139,000 |
||
| Total Liabilities and Equity |
$9,830,000 |
$8,704,000 |
$8,694,000 |
||
| Number of shares outstanding |
71,682,000 |
71,682,000 |
71,682,000 |
||
ABOUT DEQ
DEQ Systems Corp. (TSXV: DEQ) is a market leader in Table Game Systems, live and online Proprietary Table Games content and Table Top Utility solutions. DEQ markets industry leading brands such as our G3™ Table Progressive System and our EZ Baccarat™ live and online Proprietary Table Game content. DEQ's systems and games are installed in over 300 casinos, in 30 countries around the world. For further information, please visit www.deq.com.
###
TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.
Forward-looking statements contained in this Press Release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the said forward-looking statements.
SOURCE DEQ SYSTEMS CORP.
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