CALGARY, ALBERTA--(Marketwire - Aug. 16, 2012) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) "For the first time in the Company's history, Q2 revenues were higher than Q1 revenues, a clear sign that our diversification activities are having a positive impact on the historically cyclical nature of our business as well as providing a buffer against a challenging commodity pricing environment. Revenue growth occurred in all parts of our business with the exception of the products and services related to the Canadian natural gas market, which continued to struggle as a result of low natural gas pricing. Even more encouraging is that, although we showed strong growth in our revenue with a 30% increase over Q2 2011, our EBITDA grew by 43% for the same period reflecting the scalability of our operations. We have established a solid growth pattern, delivering record revenues for 10 successive quarters, in each of which quarterly EBITDA outperformed the same quarter on a year over year basis, ultimately rewarding our shareholders," said Matthew Heffernan, Zedi President & CEO. The Q2 2012 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.
- Record revenues for the 10th successive quarter of $26,568,000, a 30% increase over $20,457,000 in Q2 2011
- Strong EBITDA(1) results with $3,236,000 in Q2 2012, a 43% increase from $2,267,000 reported in Q2 2011
- Profit before taxation for Q2 2012 of $1,158,000 or $0.01 per common share, an increase of 48% over the $780,000 reported in Q2 2011
- Positive cash flow generation from operations, prior to working capital changes, up 34% to $3,480,000 compared to $2,589,000 in Q2 2011, with sustained strong working capital of $13,729,000
- Recurring revenue covered 211% of operations expenses and 182% of total cash expenditures - two measures that are significant indicators of performance and sustainability.
Zedi Inc. (TSX VENTURE:ZED) provides integrated services, applications, and technology to oil and gas producers to help efficiently manage their production operations. Having established a leadership position in our base market, we continue to grow globally by operating in 25 countries around the world. Our expertise helps producers increase revenue while reducing operating costs and ensuring regulatory compliance.
||EBITDA is a non-IFRS measure that is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. EBITDA is Earnings before interest, taxes, depreciation and amortization. See section 9 of the Management Discussion and Analysis for further detail.
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 and earnings expectations, diversification and acquisition activity, strategies, 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.