Quorum posts huge Q2 gains
What a difference a year has made for Quorum Information Technologies Inc.
The Calgary-based software company behind the DMS XSellerator program posted second quarter net income of $330,000 – a huge leap over this time last year when net income sat at a paltry $3,000.
Revenue hit $2 million, up from $1.6 million in the prior-year period.
Company president and CEO Maury Marks said Quorum is focused on “responsible growth” adding that its strategic goal remains to be an expanded customer base “through new sales while generating sustained positive cash flow every quarter.”
Q2 results show a record level of active dealership rooftops with 228.
“Additionally, we now have a more diverse customer base as 25 per cent of our dealerships are now non-GM franchised dealerships, up from 10 per cent at June 30, 2009.”
Quorum now supports GM, Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper dealerships.
Other totals included:
- Revenue increased by 24 per cent compared to Q2 FY2009 and 4 per cent compared to Q1 FY2010.
- Gross profit margin increased slightly from 55 per cent in both Q2 FY2009 and Q1 FY2010 to 57 per cent in Q2 FY2010. This performance is particularly important because it was achieved in a high installation quarter and installation revenue is lower margin revenue compared to our recurring support revenues.
- EBITDA (earnings before interest, taxes, depreciation and amortization) in Q2 FY2010 was $383,000 versus $250,000 in Q2 FY2009 and $297,000 in Q1 FY2010. We managed to increase our EBITDA despite incurring some added costs (including staffing) to increase our implementation capacity.
- Net income for Q2 FY2010 was $330,000 compared to $3,000 in Q2 FY2009 and $15,000 for Q1 FY2010.
- Positive quarterly cash flow from operating activities of $305,000 was achieved in Q2 FY2010 versus $53,000 in Q2 FY2009 and $285,000 in Q1 FY2010.
- Net cash outflows for investing and financing activities were $140,000 in Q2 FY2010 for a quarterly increase in cash of $165,000.
