Zedi Inc.

Zedi Inc.

November 10, 2011 19:38 ET

Zedi announces record Q3 2011 financial results

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED): Q3 2011 marks the highest quarterly revenue in the company's history, reflecting solid execution by the Zedi team on all fronts. Revenues for Q3 2011 were $23,563,000 compared to $14,445,000 for Q3 2010, representing an increase of 63%. Operations continue to generate strong cash flow, with cash from operations prior to working capital changes of $3,975,000 generated in Q3 2011, a 96% increase compared to the $2,024,000 generated in Q3 2010. Closing working capital for Q3 2011 remains very strong at $14,322,000.

Profit before taxation increased 81% in Q3 2011 at $2,144,000 or $0.02 per common share, compared to $1,187,000 or $0.01 per common share for Q3 2010. This result was attributed to 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. EBITDA(1) for Q3 2011 was $3,893,000, an 89% increase compared to $2,061,000 in Q3 2010. The Q3 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.

Recurring revenue for Q3 2011 increased to 212% of operations expenses, up from 183% in Q3 2010. Recurring revenue as a percentage of the Company's total cash expenditures, which include operations expenses, deferred development costs and capital asset purchases, increased to 185% for Q3 2011 from 167% in Q3 2010. The Company believes that these two measures are significant indicators of performance and sustainability, which are further described in section 12 of the Management Discussion and Analysis.

"The acquisitions we have made over the last year continue to contribute solid financial results, meeting or exceeding expectations in all cases. We continue to expand our oil solutions, including our recently acquired SilverJack hydraulic pump technology. We appreciate the on-going commitment of our customers, who count on us for continued customer excellence in service and support", said Matthew Heffernan, Zedi President & CEO.

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. EBITDA is a non-IFRS measure that is commonly used by industry to normalize non-operating factors that are included in net income. EBITDA is Earnings before interest, taxes, depreciation and amortization. See section 12 of the Management Discussion and Analysis for further detail.

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

  • Zedi Inc.
    Debra Deane
    Investor Relations
    403-444-1101 (FAX)