Zedi Inc.

Zedi Inc.

August 11, 2011 19:45 ET

Zedi announces Q2 2011 financial results

CALGARY, ALBERTA--(Marketwire - Aug. 11, 2011) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) "Despite the extended spring break-up in western Canada, the company set another all-time record for Q2 revenues. Strong performance from Southern Flow, as well as the addition of new revenue streams from ENRAK Consulting and Silver Jack Artificial Lift contributed to these results. The effective integration of these accretive acquisitions and strong performance by our incumbent business units sets the stage for a strong finish to 2011," said Matthew Heffernan, Zedi President & CEO. The Q2 2011 interim 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 Q2 2011 were $20,457,000 compared to $13,148,000 in Q2 2010, surpassing all previous records for second quarter results. Operations continue to generate strong cash flow, with cash from operations prior to working capital changes of $2,589,000 generated in Q2 2011 compared to $1,425,000 during Q2 2010. Closing working capital for Q2 2011 remains very strong at $13,099,000.

EBITDAS(1) for Q2 2011 was $2.46 million, a 63% increase compared to $1.51 million in Q2 2010. This result arose through continued solid performance by the new US subsidiary, Southern Flow, which was acquired in an all-cash deal, supported domestically by strong recurring revenue and an increase in field operations activity. Profit before taxation for Q2 2011 was $780,000 compared to $558,000 for Q2 2010.

Recurring revenue for Q2 2011 increased to 204% of operations expenses, up from 172% in Q2 2010. Recurring revenue as a percentage of the Company's total cash expenditures, which in addition to operations expenses includes deferred development and capital asset purchases increased to 173% for Q2 2011 up from 145% in Q2 2010. The Company believes that these two measures are significant indicators of performance and sustainability.

Zedi Inc. (TSX VENTURE:ZED) provides integrated services, applications, and technology to oil and gas producers to help efficiently manage their production operations. Having established a leadership position in our base market, we continue to grow globally by operating in 25 countries around the world. Our expertise helps producers increase revenue while reducing operating costs and ensuring regulatory compliance.

  1. EBITDAS and EBITDA are non-IFRS measures that are commonly used by industry to normalize non-operating factors that are included in net income. EBITDA is Earnings before interest, taxes, depreciation and amortization while EBITDAS also excludes stock-based compensation. See section 12 of the Management Discussion and Analysis for further detail.
  2. Zedi plans to resume quarterly investor conference calls following the release of Q3 results in November.

Cautionary Statement Regarding Forward-Looking Information

Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's growth expectations, acquisition activity, strategies, recurring revenue metrics and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information