Zedi Inc.
TSX VENTURE : ZED

Zedi Inc.

February 19, 2008 19:22 ET

Zedi Inc. Announces 2007 Financial Results

CALGARY, ALBERTA--(Marketwire - Feb. 19, 2008) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for 2007. "Financial results remained positive despite a very challenging year in our industry, highlighting the great stability and strength of the Zedi business model," said Matthew Heffernan, Zedi President & CEO. The 2007 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 2007 were $29,121,000, compared to $37,137,000 in 2006. The Company continues to generate strong positive cash flow with cash on hand at the end of the 2007 of $12,539,000 and working capital of $20,759,000, compared to cash on hand at the end of the 2006 of $9,753,000 and working capital of $21,962,000. None of the Company's cash is invested in asset-backed commercial paper.

Net income before tax in 2007 was $1,740,000 or $0.02 per common share compared to net income before tax of $4,238,000 or $0.04 per common share in 2006. A stock-based compensation expense of $1,850,000 was recognized in 2007. 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. Net income before tax with the stock-based compensation expense excluded was $3,590,000 in 2007 compared to $7,353,000 in 2006.

Earnings before interest, taxes, depreciation, amortization and stock option expense ("EBITDAS") for 2007 was $5,939,000 compared to $9,617,000 in 2006. 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 2007 increased to 102% of operating expenses, up from 77% in 2006. Zedi as well reports on 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 72% for 2007 up from 57% in 2006. The Company believes that these two measures are significant indicators of performance and highlights the strength of it's business model.

Zedi specializes in production operations management, delivering systems and services that help oil and gas producers to efficiently manage people, assets and information. We enable our customers to increase earnings from production, decrease operating costs, effectively utilize human, physical and fiscal assets and mitigate compliance risk.

Established in 1987, Zedi has enhanced the operational performance of more than 200 upstream, midstream and oilfield service customers. Please visit www.zedi.ca for more information.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

Contact Information