Zedi Inc.

Zedi Inc.

March 03, 2011 20:06 ET

Zedi Inc. announces Q4 and annual 2010 financial results

CALGARY, ALBERTA,--(Marketwire - March 3, 2011) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for 2010. "2010 has been a banner year for Zedi. Our annual revenue surpassed $57 million, the highest in corporate history, and a result of four consecutive quarters of revenue records. With the completion of the Southern Flow acquisition in January, we have had a strong start to 2011 and look forward to another good year," said Matthew Heffernan, Zedi President & CEO. The 2010 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 fiscal 2010 were $57,751,000 compared to $46,664,000 in 2009. The company exited 2010 with revenues in the fourth quarter of $15,438,000 compared to $13,600,000 in Q4-2009, setting another record quarter in 2010. Earnings before interest, taxes, depreciation, amortization and stock based compensation expense ("EBITDAS") for 2010 was $9,368,000 compared to $6,276,000 in 2009. While EBITDAS is a non-GAAP measure it is commonly used by industry to normalize non-operating factors that are included in net income. Net income before tax for 2010 was $5,430,000 an increase of $4,281,000 when compared to the net income before tax of $1,149,000 in 2009.

The Company tracks recurring revenue as a percentage of operations expenses. Recurring revenue for 2010 covered 178% of operations expenses, up from 176% through 2009. Zedi as well tracks recurring revenue as a percentage of the Company's total cash requirements, which in addition to operations expenses includes deferred development and capital asset purchases, and reports 160% for 2010, up from 148% for the same period in 2009. The Company believes that these two measures are significant indicators of performance and sustainability.

Zedi Inc. (TSX VENTURE:ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through vital work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 800 upstream, midstream and oilfield service customers.

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, 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)