TORONTO, Aug. 29, 2018 /PRNewswire/ -- Quisitive Technology Solutions Inc. (Quisitive or the "Company") (TSXV: QUIS), a premier Microsoft solutions provider, announced today that it is on target posting second-quarter revenue of $3,207,308.
Fusion Agiletech Partners Inc. ("Fusion") formed in 2017 to act as a consolidator in the Microsoft partner ecosystem and invest in emerging technology. In January 2018, the Company raised capital through private placement and in February 2018 purchased Quisitive, LLC, a premium Microsoft solutions provider. Results today reflect Fusion's operations since February 2018. Fusion completed an RTO with Nebo Capital Corporation effective August 8, 2018 and the resulting company has changed its name to Quisitive Technology Solutions Inc.
Revenue for the three months ending June 30, 2018 was $3,207,308, a 147.6% increase from the three months ending March 31, 2018 of $1,295,583.
Revenue was $4,502,831 for the six months ended June 30, 2018.
Gross profit for the three months ending June 30, 2018 increased to $1,171,407 or 37% from $429,672 or 33% in the first quarter ending March 31, 2018.
Gross profit for six months ending June 30, 2018 was $1,601,079 or 36%.
Net loss for the three months ending June 30, 2018 was $452,489 which represents a $0.01 loss per share.
Net loss for the six months ending June 30, 2018 was $1,225,552 which represents a $0.02 loss per share.
Adjusted EBITDA loss for the three months ending June 30, 2018 was $119,328 or (3.7%) of revenue.
Adjusted EBITDA loss for the six months ending June 30, 2018 was $232,937 or (5.2%) of revenue.
The company incurred $68,691 in acquisition related expenses in the three months ending June 30, 2018 compared with $155,000 incurred in the three months ending March 31, 2018.
"In the last several weeks, Quisitive has demonstrated impressive momentum, punctuated by our listing on the TSXV, and accented by strong second quarter financial results today," said Mike Reinhart, Quisitive's CEO. "As we look ahead, we will continue to execute on our long-term, sustainable growth strategy, which includes aggressive M&A activity consolidating the Microsoft partner ecosystem and product development across new and emerging technologies like blockchain, artificial intelligence (AI) and internet of things (IoT)."
During the second quarter, Quisitive achieved the following milestones:
Microsoft selected the Company as a certified Azure Assessment partner. This certification allows the Company to drive assessments on Microsoft's behalf within their customer base. The Company developed and launched its proprietary Azure Accelerator program – an assessment service designed to help organizations assess where they are on the maturity scale to move to the cloud, and evaluate their application and security environment. This evaluation identifies which applications can be migrated and optimized in Microsoft Azure and provides a custom business case with associated ROI value, roadmap for application transformation and a custom cloud migration plan.
During this quarter, the Company has invested $220,000 in developing IP built on the Microsoft Azure platform, and leveraging key technologies such as blockchain, artificial intelligence, machine learning and the internet of things (IoT). The developed proofs-of-concept have been applied to key scenarios within Oil & Gas, Financial Services and Manufacturing, with a goal to create replicable solutions that result in accelerated transformation of the business.
The Company was listed on the TSXV. The listing was critical as it provides the Company with access to capital markets necessary to raise capital to execute on the consolidation strategy and vision to become the Partner of the Future for Microsoft with a North American-centric footprint.
The Company has secured an M&A advisor to build a robust M&A pipeline of Microsoft National Solutions Providers that can potentially be acquired. The criteria of a potential acquisition target includes an increased reach within North America, specialization in the Microsoft technology platform and emerging technologies, and potentially have recurring offerings as a way to continue to service customers. The Company wants to align with Microsoft partners that are progressive in how they help industries address key business problems through the appropriate application of technology.
Subsequent to Second Quarter of Fiscal 2018:
The Company was selected as a 2018 Microsoft US Partner of the Year Finalist and recognized as a top Microsoft partner demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology. Finalist and award winners represent the best and most forward-thinking innovators coming out of the Microsoft partner community.
The Company announced the completion of the RTO on August 8, 2018 and is now trading under the symbol TSXV: QUIS.
Echelon Wealth initiated coverage and published an initiation research report on the Company.
The Company's unaudited condensed consolidated interim financial statements as at and for the three and six months ended June 30, 2018 and related management's discussion and analysis can be found on the Company's SEDAR profile at www.sedar.com. All figures are expressed in United States dollars unless otherwise stated.
Conference Call Access To access the conference call by phone, please dial the following numbers.
Canada/United States: 1-800-319-4610 Toronto Toll: 1-416-915-3239
We will start the call promptly at 4:30pm EDTAugust 29, 2018. Callers should dial in 10 minutes prior to the scheduled start time and ask to join the Quisitive Technology Solutions call.
Quisitive is a premier Microsoft solutions provider that helps customers navigate the ever-changing technology climate that their business relies upon. With a legacy of innovation and deep technical expertise, Quisitive is empowering the enterprise to harness the Microsoft cloud and emerging technologies such as blockchain, artificial intelligence (AI), machine learning, and the Internet of Things (IoT) through customized solutions and first-party cloud-based products.
Quisitive is uniquely comprised of former Microsoft leaders and technologists who share a deep understanding of market needs and the appropriate application of Microsoft cloud technology. Quisitive serves clients globally with offices in Dallas, TX, Denver, CO and Toronto, Ontario. For more information, visit http://www.Quisitive.com or follow @BeQuisitive.
Reconciliation of Non-GAAP Financial Measures - Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue
We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.
The term "Adjusted EBITDA" refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include acquisition-related expenses). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.
Management considers these non-operating expenses to be outside the scope of Quisitive' ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.
Reconciliation of Adjusted EBITDA loss
June 30, 2018
June 30, 2018
Net loss for the period
Adjustments to reconcile to Adjusted EBITDA
Income tax expense
Acquisition related expenses
Adjusted EBITDA loss
Adjusted EBITDA loss as a percentage of revenue
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.
Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, consolidation strategy and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others the limited history of operations, lack of profitability, availability of financing, the need for additional financing and the timing and amount of expenditures, ability to successfully execute on consolidation strategies, the failure to find economically viable acquisition targets, funding for internally developed technology solutions, client retention and attrition, client demands, reliance on key personnel, economic spending in the IT industry and technological changes in the IT industry. Quisitive Technology Solutions Inc. does not assume the obligation to update any forward-looking statements.