Texada Software Inc.

Texada Software Inc.

April 29, 2009 09:11 ET

Texada Software Inc. Announces Results for the Year Ended December 31, 2008

- Revenue of $4.28 Ml., an increase of 6.1% over 2007 - Adjusted EBITDA loss (as defined below) of $0.71 Ml. compared to a loss of $1.41 Ml. in 2007 - Closing of a convertible debt financing providing additional working capital and extending the maturity date of the Company's debt to December 2011

GUELPH, ONTARIO--(Marketwire - April 29, 2009) - Texada Software Inc. ("Texada") (TSX VENTURE:TXS), the premier provider of equipment rental and mobile asset management software, announces today its audited financial results for 2008.

For the year ended December 31, 2008, the Company generated total revenues of $4.28 Ml. and a net loss of $1.68 Ml. Adjusted EBITDA (defined as income (loss) for the year adjusted for amortization, accretion on convertible debt, interest expense, foreign exchange losses, severance payments, stock based compensation expense, lease closure expenses and gain on sale of asset) was a loss of $0.71 Ml. These results compare to total revenues of $4.0 Ml., a net loss of $3.3 Ml. and an Adjusted EBITDA loss of $1.41 Ml. for fiscal 2007.

Revenue for 2008 was 6.1% higher than revenue recorded for fiscal 2007. The split between license and service revenue remained virtually unchanged in 2008 compared to 2007. Gross profit in 2008 was consistent with 2007 at $3.56 Ml. while operating expenses declined by more than $0.70 Ml. resulting in an improvement in Adjusted EBITDA loss of an equal amount during 2008. A larger reduction in the expense for accretion on convertible debentures and the gain on sale of a domain name in the year resulted in a decline in non operating expenses of more than $0.90 Ml., resulting in a decline in the net loss for the year to $1.68 Ml. from $3.3 Ml. in 2007.

The quarter ending December 31, 2008 saw Texada close a convertible debenture financing which provided significant additional working capital and make a number of changes to its senior management team, including the appointment of Brian Spilak as President & Chief Executive Officer. As the year came to a close, several important steps were taken to further align the Company's cost structure to its revenue streams and the new management team instituted a renewed focus on revitalizing relationships with key customers. Coupled with these actions, a detailed review of the Company's entire business model and processes was commenced late in the quarter in order to properly position Texada for 2009.

"While the fourth quarter of 2008 may have been disappointing for Texada from a financial results perspective", notes Brian Spilak, "we enter 2009 with a very healthy customer base, a strong slate of products and services, exceptional partnerships and a Texada team with renewed focus on Meeting and Exceeding our Customer's Expectations. It is with this re-energized customer focus that we look forward to building momentum and further extending our feature rich product set into a growing market leadership position".

The Company's financial results are presented below:

Thousands of Canadian Dollars Three Months Year Ended
(except per share amounts) Ended December 31 December 31
2008 2007 2008 2007
Revenue $612 $ 689 $ 4,283 $ 4,036
Operating Loss (Adjusted EBITDA) (684) (473) (712) (1,407)
Net Loss for the Period (1,280) (1,316) (1,680) (3,300)
Loss per share $ (0.15) $ (0.20) $ (0.20) $ (0.63)

More information may be found at www.sedar.com.

About Texada Software Inc. (TSX VENTURE:TXS)

Texada Software Inc. is the premier provider of enterprise software solutions for equipment rental and mobile equipment. Texada's solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support.

Texada's market-driven software products combine knowledge and best practices from over 5,000 users worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal. The Company's customers enjoy the many benefits of this enhanced efficiency through better asset utilization, effective location tracking, and optimized scheduling.

Texada can be reached at 1-800-361-1233 or 1-519-836-7073, or on the internet at www.texadasoftware.com.

This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors Texada's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

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

Contact Information

  • Corporate communications contact:
    Texada Software Inc.
    Brian Spilak
    President & CEO
    1-800-361-1233 x - 2123
    Email: bspilak@texadasoftware.com