“In 2022, we transitioned to a more balanced profitable growth strategy, a more efficient sales strategy prioritizing cross selling and a
“Through a combination of purposeful product investment and four strategic acquisitions in the last five years Quorum now has a uniquely integrated product suite of 12 essential software solutions and services that we can sell to dealers to drive their business during these difficult economic conditions,” continued
Consolidated Results for Q4 2022 and Fiscal Year 2022
Q4 2022 | % Change | Q4 2021 | 2022 | % Change | 2021 | ||||||||||||
Total Revenue | $ | 9,850,916 | 7% | $ | 9,220,623 | $ | 38,803,539 | 8% | $ | 36,051,217 | |||||||
SaaS Revenue | $ | 7,023,005 | 6% | $ | 6,600,497 | $ | 27,658,155 | 8% | $ | 25,680,564 | |||||||
BDC Revenue | $ | 2,637,001 | 8% | $ | 2,442,502 | $ | 10,412,232 | 10% | $ | 9,441,602 | |||||||
Recurring Revenue | $ | 9,660,006 | 7% | $ | 9,042,999 | $ | 38,070,387 | 8% | $ | 35,122,166 | |||||||
Gross Margin | $ | 4,681,865 | 8% | $ | 4,315,665 | $ | 18,662,386 | 14% | $ | 16,409,098 | |||||||
Gross Margin % | 48% | 47% | 48% | 46% | |||||||||||||
EPS (Loss) | -$ | 0.002 | -$ | 0.028 | -$ | 0.190 | -$ | 0.037 | |||||||||
Net Loss | -$ | 166,331 | 92% | -$ | 2,015,162 | -$ | 1,412,783 | 48% | -$ | 2,711,265 | |||||||
Adjusted Net Loss4 | -$ | 166,331 | 52% | -$ | 347,068 | -$ | 1,412,783 | -35% | -$ | 1,043,171 | |||||||
Adjusted EBITDA | $ | 1,595,543 | 40% | $ | 1,142,424 | $ | 5,601,284 | 12% | $ | 4,988,389 | |||||||
Adjusted EBITDA Margin | 16% | 12% | 14% | 14% | |||||||||||||
Adjusted Cash Income | $ | 1,049,389 | 80% | $ | 583,027 | $ | 3,050,049 | 30% | $ | 2,348,928 |
Fourth Quarter Results
- Adjusted EBITDA margin was 16% for Q4 2022 as compared to 12% for Q4 2021.
- Adjusted Cash Income was over
$1 million for the second consecutive quarter. - Total revenue increased by 7% to
$9.9 million in Q4 2022 compared to$9.2 million in Q4 2021. - Recurring SaaS revenue increased by 6% to
$7.0 million in Q4 2022 compared to$6.6 million in Q4 2021. - Recurring BDC services revenue increased by 8% to
$2.6 million in Q4 2022 compared to$2.4 million in Q4 2021. - Gross margin increased to
$4.7 million and 48% of total revenue in Q4 2022 compared to$4.3 million and 47% of total revenue for Q4 2021. Gross margin increased by 8% as compared to Q4 2021. - Including cash of
$4.9 million , total net working capital increased to$6.2 million from$5.5 million as ofSeptember 30, 2022 .
Fiscal Year 2022 Results
- Adjusted EBITDA margin was 14% for 2022 and consistent with 14% reported in 2021.
- Adjusted Cash Income increased by 30% to
$3.1 million compared to$2.3 million in 2021. - Total revenue increased by 8% to
$38.8 million in 2022 compared to$36.1 million in 2021. - Recurring SaaS revenue increased by 8% to
$27.7 million as compared to$25.7 million in 2021. - Recurring BDC services revenue increased by 10% to
$10.4 million as compared to$9.4 million in 2021. - Gross margin increased to
$18.7 million and 48% of total revenue in 2022 compared to$16.4 million and 46% of total revenue for 2021. Gross margin increased by 14% as compared to 2021. - Including cash of
$4.9 million , total net working capital decreased to$6.2 million from$7.6 million as ofDecember 31, 2021 , a decrease of$1.4 million that is due to the$1.1 million repayment of the BDC Capital Loan Facility inFebruary 2022 and$0.4 million of contingent consideration related to the acquisition ofAccessible Accessories Limited .
SaaS-based operational KPIs are as follows:
Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | |
Dealer Rooftop Count - | 920 | 923 | 1,343 | 1,350 | 1,322 |
Dealer Rooftop Count - US | 125 | 116 | 116 | 114 | 118 |
Dealer Rooftop Count - Total | 1,045 | 1,039 | 1,459 | 1,464 | 1,440 |
MRRPU |
Monthly recurring revenue per unit (“MRRPU”) implies that, as of the end of Q4 2022, each dealership (“Dealer Rooftop”) represents approximately
2022 Business Highlights
- In
February 2022 , Quorum restructured its credit facility withBDC Capital Inc. The new facilities move interest rates from a fixed interest rate to a variable rate and extends the maturity date fromJanuary 15, 2025 toAugust 15, 2027 . - In
March 2022 , Quorum announced new OEM integrated functionality for its PowerLane product. PowerLane is a mobileService Lane tool that provides customers with a touchless, transparent customer experience that includes media capture capabilities that allow dealership customers to review a video of any necessary repairs. - In
April 2022 , Quorum completed the acquisition ofAccessible Accessories Ltd. (“Accessible”). Accessible develops, implements, and supports its web-based platform that allows franchised dealership to sell accessories more effectively. Accessible is Quorum’s fourth acquisition since 2017 and marks another step forward in Quorum’s strategy to be a full-service provider to automotive dealerships. - In
May 2022 , Quorum announced the retention ofRed Cloud Securities Inc. to provide market making services for the purposes of maintaining an orderly market. - In
June 2022 , Quorum announced the appointment ofBruce Atkinson as Vice President Operations. - In
October 2022 , Quorum presented at VirtualInvestorConferences.com.
Subsequent event
In
Quorum 2022 Annual Results Conference Call Details and Investor Presentation
Date: | |
Time: | |
Dial-In #: | |
Webcast Link: | Quorum Year End 2022 Annual Results Conference Call (Webcast) |
An updated Investor Presentation, replay of the results conference call, and transcripts of the conference call, will also be available at www.QuorumInformationSystems.com.
About
Quorum is a
- Quorum’s Dealership Management System (DMS), which automates, integrates, and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction.
- DealerMine CRM, a sales and service Customer Relationship Management (“CRM”) system and set of
Business Development Centre services that drives revenue into the critical sales and service departments in a dealership. - Autovance, a modern retailing platform that helps dealerships attract more business through Digital Retailing, improve in-store profits and closing rates through its desking tool and maximize their efficiency and CSI through Autovance’s F&I menu solution.
- Accessible Accessories, a digital retailing platform that allows franchised dealerships to efficiently increase their vehicle accessories revenue.
Contacts:
President and Chief Executive Officer
403-777-0036
Maury.Marks@QuorumInfoTech.com
Chief Financial Officer
403-777-0036
Marilyn.Bown@QuorumInfoTech.com
Investor Relations
403-777-0036
Daniela.Trnka@QuorumInfoTech.com
Forward-Looking Information
This press release may contain certain forward-looking statements and forward-looking information (“forward-looking information”) within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “expect”, “may”, “will”, “project”, “should” or similar words suggesting future outcomes. Quorum believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information.
Quorum has filed its 2022 audited consolidated financial statements and notes thereto as at and for the year ended
Neither the
________________________
1 Free Cash Flow – Adjusted Cash Income less interest on long term debt and bank charges and IFRS 16 lease cash expense not included in Adjusted EBITDA
2 Adjusted EBITDA – Net income (loss) before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, foreign exchange gains and losses, one-time acquisition-related expenses and restructuring expenses.
3 Adjusted Cash Income (“ACI”) (non-GAAP) – Adjusted EBITDA less capitalized salaries and overhead.
4 Adjusted Net Loss – Net income (loss) before impairment.
5 In Q4 2022, as part of the Advantage wind down, eight Advantage rooftops moved to new service providers. The additional reduction in rooftops was due to a reduction in Accessible Accessories and Autovance brands’ rooftops which have lower demand in a market where dealerships are struggling with low vehicle inventories. Both DealerMine and Quorum DMS brands increased their rooftop count in Q4 2022.
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