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Profitable Fourth Quarter, Positive EBITDA for the Year
Markham, Ontario - April 16, 2009 - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX
Venture: VQS), a world leader in computer-based digital audio capture and management, today reported its
financial results for the three and twelve month periods ended December 31, 2008. In 2008, VIQ Solutions
achieved its goal of positive EBITDA for the year and solidified its position as a market leader in both the
transcription and digital audio and video collection and management industries.
"We are very pleased with our fourth quarter results, having achieved higher revenues and gross margin
and allowing us to achieve our goal of positive EBITDA in 2008," commented David Outhwaite, President
and Chief Executive Officer of VIQ Solutions. "We are focused on continuing to deliver improved
financial performance in 2009 and dedicated to providing top tier products and services to our clients,"
concluded Mr. Outhwaite.
Fourth Quarter Results
Revenue was $3.1 million for the three month period ended December 31, 2008, up from $2.8 million for
the same period in 2007, an increase of 8%, reflecting stronger revenue from our computer products and
services business unit. Gross margin was 51% for the period as compared to 36% for the fourth quarter of
2007 primarily due to increased sales from our computer products and services business unit. Cash flow
from operations was $246,715 for the quarter as compared to $36,403 for the same period in 2007. Net
income for the fourth quarter of 2008 was $281,596 as compared to a net loss of $356,397 for the fourth
quarter of 2007.
Annual Results
Revenue was $11.9 million for the year ended December 31, 2008 as compared to $12.3 million for the
previous year, representing a decline of 3%. Gross profit for 2008 was $5.1 million as compared to $4.5
million in 2007, representing an increase of 12%. Gross profit expressed as a percentage of revenues, was
42% (37% in 2007) attributed to the change in our revenue mix and the focus of our transcription
businesses on higher margin contracts. Net loss for the year was $283,226 or $0.00 per share as compared
to a net loss of $975,212 or $0.01 per share for the previous year.
Additional Information
Detailed financial information and Management's Discussion and Analysis of Results and Financial
Condition for the year ended December 31, 2008 will be posted on VIQ Solutions' website (under Investor
Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial
information included in this release is qualified in its entirety and should be read together with the audited
consolidated financial statements for the year ended December 31, 2008, including the notes thereto.
About VIQ Solutions Inc.
VIQ Solutions is recognized as a global provider in the digital audio industry with innovative product and service-based solutions for voice-driven systems in the legal, medical, business, and government industries. VIQ Solutions provides an integrated range of digital record workflow solutions, including digital audio and video capture, workflow management software, transcription services, interactive electronic scheduling, and case management integration, all from one central, secure database.
Forward-looking Statements
This release contains forward-looking statements and other statements concerning the Corporation's
objectives and strategies and management's beliefs, plans and intentions about our achievements, goals,
performance and other future events. These statements involve risks and uncertainties, which may cause
actual results to differ materially from the statements made. When used in this press release, the words
"anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will,", "would" and
similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ
Solutions' current views with respect to future events and are subject to such risks and uncertainties. Many
factors could cause our actual results to differ materially from the statements made due to a number of
factors including risks related to our ability to successfully execute our business plan which includes our
revenue growth, our liquidity, our operating results, our technology and products. Should one or more of
these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those described herein as intended, planned,
anticipated or expected. VIQ Solutions does not intend and does not assume any obligation to update these
forward-looking statements.
Non-GAAP Measures
EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning
prescribed by Canadian generally accepted accounting principles and may not be similar to measures
presented by other companies. EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization. This measure is important to management since it is used by potential
investors to evaluate the Corporation's operating performance and ability to incur and service debt, and as a
valuation metric.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
For further information: David Outhwaite, President & CEO, VIQ Solutions, (905) 948-8266 ext. 250, email: douthwaite@viqsolutions.com; or Karen Hersh, Chief Financial Officer, VIQ Solutions, (905) 948-8266 ext. 240, email: khersh@viqsolutions.com
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