CALGARY, ALBERTA — (Marketwired) — 11/28/14 — Cortex Business Solutions Inc. (TSX VENTURE: CBX)(OTCQX: CTPNF), an enterprise e-Procurement solutions company, reports financial results for the fiscal fourth quarter (“Q4 F2014”) and full year ended July 31, 2014 (“F2014”).
Fiscal Q4 2014 Financial Highlights vs. Same Year-Ago Quarter
Fiscal 2014 Financial Highlights vs, F2013
Management Commentary
“Fiscal 2014 was a record year for our organization, highlighted by accelerating, sequential double-digit revenue growth throughout all four quarters,” said Art Smith, president and CEO of Cortex. “The continued growth in our Cortex Trading Partner Network also resulted in record billable transactions for the F2014 fiscal year demonstrating the organic growth power of the Cortex Network.
“While we continue to focus on growing our recurring revenue stream, we have been successful rolling out additional service offerings to our customers, including the AP Services product line. In fact, during the quarter, 2 clients signed up for the service and we expect this incremental value-added offering to be a contributor to our growth in fiscal 2015. This new growth opportunity is also in addition to our 100% e-billing solution, which continues to progress according to plan.
“Thus far in fiscal 2015, our overall activity remains strong with continued increases across our network. We also continue to ramp our U.S. sales team to further access this market opportunity. Through multiple avenues for growth, particularly our new service offerings and recurring revenue streams, we expect fiscal 2015 to be another record year for our organization.”
Fiscal Q4 2014 Financial Results
Total revenues in the Q4 F2014 increased 73% to $2.8 million compared to $1.6 million in the fiscal fourth quarter of 2013 (“Q4 F2013”). The key growth was in the access and usage revenue stream, which increased 45% as a result of billable transactions flowing through the network of 21% (Q4 F2014 – 1,182,665; Q4 F2013 – 974,193). This increase in billable transactions is the direct result of the sales of additional buying organizations in the fiscal year; with the suppliers starting to transact on the Network or increasing their transactions in Q4 F2014.
On a sequential basis, total revenues increased 18% compared to $2.4 million in the third quarter of 2014 (“Q3 F2014”). Recurring access and usage fees increased 3% to $2.1 million in Q4 F2014
Gross Profit net of amortization was $1,069,268 or 38% of revenue.
Net loss in Q4 F2014 was $1.6 million compared to a net loss of $1.5 million in Q4 F2013.
Fiscal Q4 2014 Operational Metrics
Full Year Fiscal 2014 Financial Result
Total revenues in F2014 increased 45% to $9 million compared to $6.2 million in F2013. Access and usage fees in F2014 increased 41% to $7.7 million compared to $5.5 million in F2013.
Gross Profit net of amortization for the F2014 was $4,288,255 or 48% of revenue.
Net loss in F2014 improved to $5.9 million or $(0.02) per diluted common share, compared to a net loss of $6.9 million or $(0.03) per diluted common share in F2013.
Net cash used in operating activities improved from ($6.2 million) in F2013 to ($4.5 million) in F2014, an improvement of 29%.
During the fourth quarter of 2014, management revisited a certain contract that the Company entered into during fiscal 2009 (the “Agreement”). As a result, the Company determined a restatement was required and as such has restated its F2013 (with F2012 comparatives) and Q1, Q2 and Q3 F2014. The details of the restatement can be found in the press release and restated financial statements and MD&A for the year ended July 31, 2013 with comparatives for the year ended July 31, 2012; the Q1 F2014; Q2 F2014 and Q3 F2014 filed on SEDAR on November 28, 2014
Conference Call
Cortex will conduct a conference call on Friday, November 28, 2014 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time) to discuss its financial results for the fiscal fourth quarter and full year ended July 31, 2014. The financial results will be issued in a press release prior to the call.
Cortex management will host the conference call, followed by a question and answer period.
Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
A replay of the conference call will be available after the call through December 5, 2014.
About Cortex Business Solutions
Cortex Business Solutions Inc. (TSX VENTURE: CBX)(OTCQX: CTPNF) is an enterprise e-Procurement solutions company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices, resulting in improved cash flow management and business controls, while reducing day–s outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging clients– existing business environment.
For more information, please visit .
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. In particular, this press release contains forward-looking statements pertaining to meaning revenue growth from e-billing solution and recurring revenue growth. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Cortex believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. With respect to forward-looking statements contained in this press release, Cortex has made assumptions regarding, among other things: Cortex–s continued success in gaining new customers in Canada and the United States, general economic and financial conditions, and other assumptions as set forth in the company–s annual filings. Cortex–s actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: worse than expected general economic conditions in Canada and the United States, the inability of management to execute its business plan and manage growth successfully and the risk of slow service adoption. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Cortex–s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ().
The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement. Readers should not place undue reliance on forward-looking information. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements.
Contacts:
Investor Relations Contacts:
Liolios Group, Inc.
Cody Slach
1-949-574-3860
Brisco Capital Partners
Scott Koyich
1-403-215-5979
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