Zedi Inc.

Zedi Inc.

February 17, 2009 20:08 ET

Zedi Inc. Announces 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2009) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for 2008. "2008 was a strong year for Zedi. It was a year where we delivered on our promise to introduce more products and services to more geographies, resulting in a significant increase in revenues. Supported by our proven business model, we will continue to deliver products and services for producers to both reduce costs and maximize production - both of which are key in this challenging economic climate," said Matthew Heffernan, Zedi President & CEO. The 2008 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 2008 were $46,178,000, compared to $29,121,000 in 2007. The Company exited 2008 with record revenues in the fourth quarter of $14,339,000 and operations that continue to generate strong cash flow, resulting in working capital at the 2008 year-end of $10,527,000. The reduction in working capital from the December 31, 2007 balance of $20,818,000 arose primarily through the cash funding of three acquisitions during 2008, each of which was immediately accretive to consolidated revenues and cash flow from operations.

Net income before tax for 2008 was $3,059,000 or $0.03 per common share compared to net income before tax of $1,740,000 or $0.02 per common share for 2007. A stock-based compensation expense of $1,513,000 was recognized in 2008. 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. Earnings before interest, taxes, depreciation, amortization and stock option expense ("EBITDAS") for 2008 was $8,159,000 compared to $5,939,000 in 2007. 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 2008 increased to 137% of operating expenses, up from 102% in 2007. 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 101% for 2008 up from 72% in 2007. The Company believes that these two measures are significant indicators of performance and sustainability.

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.

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