Zedi Inc.

Zedi Inc.

November 13, 2008 18:59 ET

Zedi Inc. Announces Third Quarter 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2008) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q3 of 2008. "We continue to deliver strong financial results with significant growth despite a turbulent economy. We believe this is further evidence of the positive impact our solutions deliver as producers look to reduce costs, improve efficiencies and maximize revenues - all of which are key benefits delivered every day from Zedi," said Matthew Heffernan, Zedi President & CEO. The unaudited third quarter 2008 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 the Q3 of 2008 were $10,429,000, compared to $7,197,000 in 2007, an increase of approximately 45%. The Company maintained its strong positive cash position with cash on hand at the end of the Q3 2008 of $8,742,000 and working capital of $15,726,000, while spending $1,298,000 to purchase shares under the Company's normal course issuer bid. None of the Company's cash is invested in asset-backed commercial paper.

Net income for Q3 2008 was $359,000 compared to net income of $321,000 for Q3 2007, an improvement of 12%. A stock-based compensation expense of $331,000 was recognized in Q3 2008 compared to $286,000 for Q3 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. Earnings before interest, taxes, depreciation, amortization and stock-based compensation expense ("EBITDAS") for Q3 2008 was $1,846,000 compared to $1,621,000 for Q3 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 also announces that it has authorized the granting of 2,260,000 options to employees, officers and directors of the Company. The exercise price of the options is $0.60, which is the closing price at the time the options were granted by the Board of Directors on November 13, 2008. All of the options vest equally in thirds over a three year period and expire in equal amounts on the second, third and fourth anniversaries from the date of grant. The Company also authorized the granting of 847,500 Restricted Stock Units to employees, officers and directors of the Company vesting two years from the date of grant.

Zedi continued to execute against strategy of delivering value through data in Q3 with the announcement of the intent to purchase OAS Oilfield Operations Account Services Ltd., a transaction that subsequently closed on October 31, 2008. As a result of the combination of these two companies, Zedi will monitor in excess of 36,000 wells of which 25,000 are measured with charts and over 11,000 are measured electronically.

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 10,000 sites for over 300 upstream, midstream and oilfield service customers. Please visit www.zedi.ca for more information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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