CALGARY, AB / ACCESSWIRE / November 24, 2022 / Ivrnet Inc. (TSXV:IVI) ("Ivrnet" or the "Company") announces that it has filed its condensed interim consolidated financial statements for the three and nine-months ended September 30, 2022 (the "Interim Financial Statements") and the accompanying management's discussion and analysis for the nine-months ended September 30, 2022 (the "Interim MD&A").
The following Q3 2022 financial highlights should be read in conjunction with the Interim Financial Statements and the accompanying Interim MD&A, which can be found on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
Q3 2022 Financial Highlights
- The Corporation saw continued growth in its financial technology recurring revenues. Fixed recurring revenue was $87,992 in Q3 2022 compared to $87,941 in Q3 2021 and variable recurring revenue increased by $11,313 (approximately 17%) to $78,979 in Q3 2022 compared to $67,666 in Q3 2021. During the nine-months ended September 30, 2022, fixed recurring revenue increased by $22,888 (approximately 10%) to $261,074 compared to $238,186 in the nine-months ended September 30, 2021 and variable recurring revenue increased by $13,862 (approximately 7%) to $204,391 compared to $190,529 in the nine-months ended September 30, 2021. The overall increase in financial technology services revenues was driven by the addition of a new customer after Q1 2021.
- Fixed recurring revenue from Central decreased by $7,435 (approximately 17%) to $37,540 in Q3 2022 compared to $44,975 in Q3 2021 and decreased by $29,563 (approximately 20%) to $117,924 in the nine-months ended September 30, 2022 compared to $147,487 in the nine-months ended September 30, 2021. The decrease was primarily due to a new pricing strategy implemented in Q1 2022 for homeowner association customers which saw a shift from fixed recurring to variable recurring revenue. Variable recurring revenue from Central increased by $25,665 (approximately 50%) to $76,878 in Q3 2022 compared to $51,213 in Q3 2021 and increased by $76,082 (approximately 50%) to $228,797 in the nine-months ended September 30, 2022 compared to $152,715 in the nine-months ended September 30, 2021. This increase is partially due to the change in pricing strategy of homeowner associations described above together with an increase in sports registrations in the nine-months ended September 30, 2022 due to the relaxing of COVID-19 health guidelines as compared to the nine-months ended September 30, 2021.
- Fixed recurring revenue from Communications decreased by $13,278 (approximately 4%) to $325,392 in Q3 2022 compared to $338,670 in Q3 2021 and decreased by $58,369 (approximately 6%) to $965,243 in the nine-months ended September 30, 2022 compared to $1,023,612 in the nine-months ended September 30, 2021. The decrease in fixed recurring revenues is primarily due to reduced fees from existing customers. Variable recurring revenue from Communications decreased by $30,105 (approximately 21%) to $110,082 in Q3 2022 compared to $140,187 in Q3 2021 and decreased by $18,596 (approximately 5%) to $376,234 in the nine-months ended September 30, 2022 compared to $394,830 in the nine-months ended September 30, 2021. As companies adapted to the COVID-19 restrictions the use of the Corporation's toll free and audio conference solutions has declined through 2022.
- Total direct costs increased by $35,498 to $272,436 or approximately 38% of revenues in Q3 2022 compared to $236,938 or approximately 30% of revenues in Q3 2021. Total direct costs increased by $63,197 to $759,948 or approximately 35% of revenues in the nine-months ended September 30, 2022 compared to $696,751 or approximately 31% of revenues in the nine-months ended September 30, 2021. This overall increase is primarily due to an increase in certain variable communication costs tied to fixed recurring customer contracts.
- Earnings before Interest, Depreciation and Amortization ("EBITDA") for Q3 2022 was $74,170 compared to $118,094 for Q3 2021. This represents a decrease of $43,924 in EBITDA. The decrease is primarily a result of a decrease in variable communications revenue due to the ongoing adaptation of companies to working remotely and a decline in the use of the Corporation's toll free and audio conference solutions, a decrease in one-time communications revenue as in Q3 2021 there were significant initial customer setup fees and other one-time activities and an increase in communications direct costs due to certain variable communication costs tied to fixed recurring customer contracts. This was partially offset by a decrease in general and administrative expenses arising from sustained cost control measures. EBITDA was a loss of $170,699 for the nine-months ended September 30, 2022 compared to a loss of $274,896 for the nine-months ended September 30, 2021. This represents an increase of $104,197 in EBITDA. The increase is primarily a result of ongoing cost control measures and non-recurring and non-cash items from the nine months ended September 30, 2021 which did not recur in the nine months ended September 30, 2022, including share based compensation, a loss on the settlement of liabilities through the issuance of common shares, a loss on disposal of property and equipment and an impairment loss on the right of use asset, as the Corporation vacated its leased premise in 2021 because the premise had been made untenable by the landlord. This was partially offset by additional expenses incurred in connection with the Reverse Takeover Transaction together with reimbursable expenses submitted by the commercial lender of approximately $495,000, including sales taxes, related to the expected settlement of the term loan and credit facility with the issuance of preferred shares which is contingent on the completion of the Reverse Takeover Transaction.
Trading Halt
The Corporation's common shares are currently halted from trading, and the trading of the Corporation's common shares is expected to remain halted pending completion of the reverse takeover transaction with Flexity Systems Ltd. previously announced on November 19, 2021 and updated on March 29, 2022.
About Ivrnet
Ivrnet is a software and communications company that develops, hosts, sells and supports value‐added business automation software. The company's products and services are delivered through the Internet and traditional phone network. These applications facilitate automated interaction through personalized communication between people, mass communication for disseminating information to thousands of people concurrently, and personalized communication between people and automated systems.
For further information on Ivrnet, please contact:
Andrew Watts, President and CEO
Suite 1400, 350 - 7th Avenue S.W., Calgary, Alberta T2P 3N9
Tel/fax: 1.800.351.7227
E-mail: [email protected]
Website: www.ivrnet.com
Neither the 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: Ivrnet Inc.