Ivrnet Announces Financial Results for the Six Months Ended June 30, 2022 and Provides Halt of Trading Update
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CALGARY, AB/ACCESSWIRE/August 26, 2022/ Ivrnet Inc. (TSXV:IVI) (“Ivrnet“or the”Company“) announces that it has filed its condensed interim consolidated financial statements for the three and six months ended June 30, 2022 (the “Interim Financial Statements”) and accompanying MD&A for the six months ended June 30, 2022 (the “interim management report”).
The following Q2 2022 financial highlights should be read in conjunction with the interim financial statements and accompanying interim MD&A, which are available on the Canadian System for Electronic Document Search and Analysis (“SEDAR”) at the address www.sedar.com.
Q2 2022 Financial Highlights
- The Company has seen continued growth in its recurring fintech revenue. Fixed recurring revenue increased by $5,766 (approx. 7%) to $86,441 in Q2 2022 from $80,675 in Q2 2021 and variable recurring revenue increased by $12,475 (approx.) 21% to $70,667 in Q2 2022 compared to $58,192 in Q2 2021. During the six months ended June 30, 2022, fixed recurring revenue increased by $22,837 (approximately 15%) to $173,082 compared to $150,245 during the six months ended June 30, 2021 and variable recurring revenue increased by $2,549 (approximately 2%) to $125,412 compared to $122,863 for the six months ended June 30, 2021. The overall increase in fintech services revenue is attributable when adding a new customer.
- Central’s fixed recurring revenue decreased $12,126 (approximately 26%) to $34,284 in Q2 2022 from $46,411 in Q2 2021 and decreased $22,128 (approximately 22%) to s to settle at $80,384 during the six months ended June 30, 2022, compared to $102,512 during the six months ended June 30, 2021. The decrease is mainly due to a new pricing strategy implemented in the first quarter of 2022 for homeowner association customers, which has seen a shift from fixed recurring revenue to variable recurring revenue. Central’s variable recurring revenue increased by $26,684 (approximately 51%) to $78,851 in Q2 2022, compared to $52,167 in Q2 2021, and increased by $50,417 (approximately 50%) to $151,919 in during the six months ended June 30, 2022, compared to $101,502 during the six months ended June 30, 2021. This increase is partly due to the change in homeowners association pricing strategy described above as well as an increase sports registrations during the six months ended June 30, 2022 due to the easing of COVID-19 health guidelines as compared to the six months ended June 30, 2021.
- Fixed recurring revenue from communications decreased $30,984 (approximately 9%) to $317,673 in Q2 2022 from $348,657 in Q2 2021 and decreased $45,091 (approximately 7%) to amount to $639,851 during the six months ended June 30, 2022, compared to $684,942 during the six months ended June 30, 2021. The decrease in fixed recurring revenue is mainly due to the reduction in fees from existing customers. Variable recurring revenue from Communications increased $10,610 (~8%) to $147,954 in Q2 2022 from $137,344 in Q2 2021 and increased $11,508 (~5%) to $266,152 $ during the six months ended June 30, 2022, compared to $254,644 during the six months ended June 30, 2021. the Company’s toll-free calls and audio conferencing declined. The Company plans to implement a new videoconferencing product to enhance its existing product offering.
- Total direct costs decreased by $2,716 to $232,111 or approximately 31% of revenue in Q2 2022, compared to $234,827 or approximately 32% of revenue in Q2 2021. Total direct costs increased by $27,699 to $487,512 or approximately 33% of revenue in the six months ended June. as of June 30, 2022 compared to $459,813 or approximately 31% of revenue during the six months ended June 30, 2021. This overall increase is primarily due to an increase in certain variable communication costs related to fixed recurring customer contracts and a increased virtual data center costs for which the Company received partial credit in Q2 2022.
- Earnings before interest, depreciation and amortization (“EBITDA”) for Q2 2022 was $157,287, compared to a loss of $102,744 for Q2 2021. This represents an increase in EBITDA of $260,031. The increase is primarily the result of lower salaries and wages and general and administrative expenses in Q2 2022 compared to Q2, as well as non-recurring and non-cash items in Q2 2021 that did not recur in Q2 2022 , including stock-based compensation, a loss on settlement of liabilities through the issuance of common shares and an impairment loss on the right-of-use asset. EBITDA was a loss of $244,869 for the six months ended June 30, 2022, compared to a loss of $392,989 for the six months ended June 30, 2021. This represents an increase in EBITDA of $148,120. The increase is primarily the result of non-recurring and non-cash items for the six months ended June 30, 2021 that did not recur during the six months ended June 30, 2022, including stock-based compensation, a loss on settlement of liabilities through the issuance of ordinary shares, an impairment loss on the disposal of property, plant and equipment and an impairment loss on the right-of-use asset which was partially offset by additional expenditure incurred in in connection with the reverse tender offer transaction as well as reimbursable expenses submitted by the commercial lender of approximately $495,000, including sales taxes, related to the expected settlement of the term loan and facility loan with the issuance of preferred shares which is conditional on the completion of the reverse takeover transaction.
Trading in the common shares of the Company is currently halted, and trading in the common shares of the Company is expected to remain halted pending completion of the reverse takeover transaction with Flexity Systems Ltd. previously announced November 19, 2021 and updated March 29, 2022.
Ivrnet is a software and communications company that develops, hosts, sells and supports value-added business automation software. The Company’s products and services are provided over the Internet and the traditional telephone network. These applications facilitate automated interaction through personalized communication between people, mass communication to broadcast information to thousands of people simultaneously, and personalized communication between people and automated systems.
For further information: please contact Andrew Watts, President and CEO, Ivrnet Inc.; Office 1400, 350 – 7e Avenue SW, Calgary, Alberta T2P 3N9; Tel/Fax 1.800.351.7227; E-mail: [email protected]; www.ivrnet.com.
Neither the 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.
THE SOURCE: Ivrnet inc.
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