Zedi Inc.

Zedi Inc.

November 12, 2009 17:29 ET

Zedi Inc. Announces Third Quarter 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2009) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q3 of 2009. "Zedi posted strong results for the three months ended September 30, 2009, compared to the same period in the prior year, despite continued weakness in both general economic and industry conditions. These results reflect our focus on internal cost containment and on our close customer relationships. Reduced drilling activity for natural gas, impacted by continued price volatility, was somewhat offset by the implementation of changes to operating practices by producers. The shift in focus by producers, from new drills to changed operational practices that are designed to deliver lower operating costs, expands the sales opportunities for Zedi solutions, although we continue to be cautious about the market in general and we will maintain our operational diligence and approach to improve our favourable position within the industry," said Matthew Heffernan, Zedi President & CEO. The second quarter 2009 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 2009 were $11,197,000, compared to $10,429,000 in 2008, an increase of approximately 7%. Although new drilling activity remained low throughout the quarter, the Company generated net new revenue through services that appeal to producers facing increased cost pressures, and the recurring revenue base remains strong. Zedi maintained its strong balance sheet position with end of period working capital of $11,317,000.

The net income for Q3 2009 was $464,000 compared to $206,000 for Q3 2008. A stock-based compensation expense of $251,000 was recognized in Q3 2009 compared to $331,000 for Q3 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-based compensation expense ("EBITDAS") for Q3 2009 was $1,951,000 compared to $1,479,000 for Q3 2008. While EBITDAS is a non-GAAP measure, it is a common indicator used by industry to normalize non-operating factors that are included in the net income results.

The Company also announces that today it has authorized the granting of 2,418,000 options to employees, officers and directors of the corporation. The exercise price of the options is $0.40, which is the latest closing price at the time the options were granted by the Board of Directors. 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 683,600 Restricted Stock Units to employees, officers and directors of the corporation vesting two years from the date of grant. 

Zedi continues to advance its strategy to become the global leader in production operations management. The company's recurring revenue model and strong balance sheet funds continued investment in the innovation of products and services and international expansion.

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 critical 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 400 upstream, midstream and oilfield service customers.

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

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