AirIQ Inc.
TSX VENTURE : IQ

AirIQ Inc.

November 28, 2013 16:56 ET

AirIQ Announces Results for September 30, 2013

Positive Cash from Operating Activities and 6th Consecutive Quarter of Revenue Growth

TORONTO, ONTARIO--(Marketwired - Nov. 28, 2013) - AirIQ Inc. ("AirIQ") (TSX VENTURE:IQ), a supplier of wireless asset management services, today announced its financial results for the three months and six months ended September 30, 2013.

"The Company is gaining momentum with growing revenues while still watching its expenses," said Donald Gibbs, President and Chief Executive Officer of AirIQ.

The highlights of the quarter were as follows:

  • The Company is shipping under the blanket contract previously announced with a major North American rental company. In the quarter the Company was approved for installation in the customer's trucks and has commenced shipments to this division.

  • 74% of revenue in the quarter was recurring.

  • Positive cash flow from operating activities of $28 during the quarter.

  • EBITDAS of ($44) for the quarter ended September 30, 2013 improved over the prior quarter ended June 30, 2013.

  • Revenue of $608 for the current quarter improved from the prior quarter.

  • Gross profit of 64.1% was slightly reduced from the prior quarter.

  • Expenses (excluding stock based compensation) of $434 were down from $459 in the prior quarter and included a charge for the Company's annual meeting of $23.

  • Net loss of ($74) was lower than the ($107) reported in the prior quarter.

Financial Highlights

Three months ended Three months ended
30-Sep-13 30-Sep-12
Total Revenue $ 608 $ 580
Gross Margin $ 390 $ 402
Gross Margin % 64.1 % 69.3 %
Net Income (loss) $ (74 ) $ (96 )
Net Income (loss) per share, basic and diluted $ 0.01 $ (0.00 )
EBITDAS* $ (44 ) $ (54 )
* The Company has included information concerning EBITDAS because it believes that it may be used by certain investors as one measure of the Company's financial performance. EBITDAS is not a measure of financial performance under IFRS and is not necessarily comparable to similarly titled measures used by other companies. EBITDAS should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with IFRS) or as a measure of liquidity.

Business Review

The Company continues to focus on its key strategy elements to build revenues and manage costs to achieve sustained profitability and positive cash flow and to seek opportunities to form value creating strategic partnerships.

Unless otherwise noted herein, and except share and per share amounts, all references to dollar amounts are in thousands of Canadian dollars.

Overview

The Company's consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.

The Company's audited consolidated financial statements as at and for the year ended March 31, 2013, including notes thereto, and Management's Discussion and Analysis for the same period were filed with the Canadian securities regulatory authorities on July 29, 2013, and will be available on the Company's website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com).

Revenues for the three months ended September 30, 2013, increased 5% to $608 from $580 for the three months ended September 30, 2012. Revenues for the six months ended September 30, 2013, increased 5% to $1,212 from $1,157 for the six months ended September 30, 2012. Approximately 74% and 73% of the total revenue for the three and six month periods ended September 31, 2013 respectively, represents recurring revenue from the Company's airtime customers.

Overall, gross profit for the three months ended September 30, 2013 decreased by 3% to $390 and 1% to $784 for the six months ended September 30, 2013 compared to $402 and $791 for the three months and six months ended September 30, 2012.

Sales and marketing, research and development and general and administrative expenses totalled $442 and $905, respectively for the three months and six months ended September 30, 2013 compared to $466 and $939, respectively for the three months and six months ended September 30, 2012.

The Company's net loss for the three months and six months ended September 30, 2013 was $74 and $181, respectively, as compared to a net loss of $96 and $207, respectively, for the three months and six months ended September 30, 2012, an improvement of $22 and $26, respectively.

Stock Option Grant

The Company also announced that effective November 28, 2013, the Board of Directors granted stock options to each of the non-executive Board members in consideration for acting on the Company's Board. A total of 250,000 options for common shares were granted with an exercise price of $0.05 per share, in lieu of any cash compensation to the Board members. Vernon Lobo, Chairman of the Board, was granted options to purchase up to 150,000 common shares of the Company and George Christopoulos was granted options to purchase up to 100,000 common shares. The term of the options is ten years from the date of grant and the options vest over a period of one year; 25% each quarter. All other terms of the option grants are in accordance with the Company's Stock Option Plan and are subject to approval of the TSX Venture Exchange.

No Conference Call

AirIQ will not be holding a conference call to discuss results. The Company's financial report, including complete financial statements and Management's Discussion and Analysis will be available on the Company's website www.airiq.com and at www.sedar.com on November 28, 2013.

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

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.

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