Zedi Inc.

Zedi Inc.

February 24, 2010 19:27 ET

Zedi Inc. announces Q4 and 2009 annual financial results

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2010) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for 2009. "The Company was poised for continued growth in the first part of 2009 but was confronted by the overall industry turndown which dramatically affected our results in Q2. I am proud of how our team responded to this challenge, as evidenced by the financial results in Q3 and particularly Q4 where we posted our second best quarterly revenue in the Company's history. These results were primarily driven by a focus on diversifying our revenue generation as well as implementing and maintaining our cost efficiency program," said Matthew Heffernan, Zedi President & CEO. The 2009 audited 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 fiscal 2009 were slightly higher at $46,664,000, compared to $46,178,000 in 2008. The Company exited 2009 with revenues in the fourth quarter of $13,600,000 compared to $14,339,000 in Q4 2008. Operations continue to generate strong cash flow, resulting in working capital at the 2009 year-end of $12,878,000 compared to $10,527,000 in 2008. 

Net income before tax for 2009 was $1,149,000 or $0.01 per common share compared to net income before tax of $2,581,000 or $0.02 per common share for 2008. This result was attributed to the poor industry conditions in 2009, especially during Q2 when drilling activity declined to a near halt, as well as non-recurring charges of $983,000 related to product integration from the 2008 acquisitions and the restructuring that occurred in the last two quarters. A stock-based compensation expense of $1,124,000 was recognized in 2009. Although these are non-cash expenses, with no actual impact on the Company's operations, generally accepted accounting principles require that they be recognized in the calculation of net income. Earnings before interest, taxes, depreciation, amortization and stock option expense ("EBITDAS") for 2009 was $6,276,000 compared to $7,073,000 in 2008. While EBITDAS is a non GAAP measure it is a common measure used by industry to normalize non-operating factors that are included in the net income results.

The Company tracks recurring revenue as a percentage of operating expenses. Recurring revenue for 2009 increased to 176% of operating expenses, up from 137% in 2008. Zedi as well tracks recurring revenue as a percentage of the Company's total cash expenditures, which in addition to operating expenses includes deferred development and capital asset purchases, and reports 148% for 2009 up from 101% in 2008. The Company believes that these two measures are significant indicators of performance and sustainability.

Zedi Inc. (TSX VENTURE:ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through critical work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 400 upstream, midstream and oilfield service customers.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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