CALGARY, ALBERTA--(Marketwire - May 17, 2012) - Zedi Inc. (the "Company" or "Zedi") (ZED.V - News) "In an environment where natural gas prices have been at multi-year lows, we report a 20% increase in top line revenues and a 33% increase in EBITDA for Q1 compared to the same quarter last year. These results speak to two key factors. The first is the diversification of our business into oil over the last two years, reducing our reliance on the natural gas market. The second is the positive impact of our business model which allowed us to achieve a higher rate of growth in EBITDA than in our top line revenue. The low natural gas prices have definitely impacted new sales of some of our core technologies but that impact has been offset by the growth we continue to experience with Zedi's oil solutions and in particular our SilverJack hydraulic pump technology. We will continue to diversify the Company from both a product and a geographical standpoint as we believe that will ultimately deliver the best returns to our shareholders," said Matthew Heffernan, Zedi President & CEO. The Q1 2012 financial statements and MD & A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.
-- Record revenues for the 9th successive quarter in a row of $26,281,000,
a 20% increase over $21,906,000 in Q1 2011
-- Record EBITDA(1)results with $4,168,000 in Q1 2012, a 33% increase from
$3,136,000 reported in Q1 2011
-- Profit before taxation for Q1 2012 of $2,154,000, or $0.02 per common
share, an increase of 12% over Q1 2011
-- Positive cash flow generation from operations, up 32% to $4,369,000
compared to $3,322,000 in Q1 2011, with sustained strong working capital
-- Recurring revenue covered 206% of operations expenses and 174% of total
cash expenditures - two measures that are significant indicators of
performance and sustainability.
Zedi is also very pleased to announce the addition of David Johnson to our Board of Directors. David brings 30 years of industry experience to both complement and augment the talents of our continuing board members. David is currently Chairman of the Board of Progress Energy Resources Corp., prior to which he served as their Executive Chairman.
Zedi Inc. (ZED.V - News) provides integrated services, applications, and technology to oil and gas producers to help efficiently manage their production operations. Having established a leadership position in our base market, we continue to grow globally by operating in 25 countries around the world. Our expertise helps producers increase revenue while reducing operating costs and ensuring regulatory compliance.
(1) EBITDA is a non-IFRS measure that is commonly used by industry to normalize non-operating factors that are included in net income and as a proxy for the cash generating potential of a business. EBITDA is Earnings before interest, taxes, depreciation and amortization - this measure may not be comparable to similar measures used by other companies. See section 9 of the Management Discussion and Analysis for further detail.
Cautionary Statement Regarding Forward-Looking Information
Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. Specifically, this press release contains statements regarding Zedi's growth expectations, diversification and acquisition activity, strategies, recurring revenue metrics and related expectations of sustainability. These statements are based on certain assumptions and analysis made by Zedi in light of its experience and its perception of historical trends, current market conditions and expected future market developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to Zedi's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zedi's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by Zedi will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Zedi or its business or operations. Except as may be required by law, Zedi assumes no obligation to publicly update any such forward- looking information and statements, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.