Toronto, ON (October 30, 2014) — NexJ Systems Inc. (TSX: NXJ), a provider of cloud-based software, delivering enterprise solutions for the financial services, insurance, and healthcare industries, today announced financial results for its third quarter ended September 30, 2014.
Financial Highlights for Q3 2014
- Third quarter revenue was $5.2 million, a difference of 21% Y/Y
- Adjusted EBITDA (as defined below) was a loss of $3.2 million or $0.16 per share (basic and diluted) for the quarter ended September 30, 2014 as compared to an adjusted EBITDA loss of $3.9 million or $0.19 per share (basic and diluted) for the comparative period in 2013
- Net loss was $3.4 million or $0.17 per share (basic and diluted) for the quarter ended September 30, 2014, as compared to a net loss of $3.8 million or $0.19 per share (basic and diluted) for the comparative period in 2013
Financial Highlights Year-to-Date 2014
- Nine month revenue was $19.5 million, a difference of 2% Y/Y
- Adjusted EBITDA (as defined below) was a loss of $7.4 million or $0.36 per share (basic and diluted) for the nine months ended September 30, 2014 as compared to an adjusted EBITDA loss of $14.6 million or $0.72 per share (basic and diluted) for the comparative period in 2013
- Net loss was $7.8 million or $0.38 per share (basic and diluted) for the nine months ended September 30, 2014, as compared to a net loss of $15.7 million or $0.77 per share (basic and diluted) for the comparative period in 2013
“We are very pleased with new bookings. Our first corporate banking contract in Asia-Pacific opens new markets for us,” said William M. Tatham, Chief Executive Officer of NexJ. “We also believe our new contract in healthcare signifies the start of the commercialization phase for NexJ Health.”
Conference Call Information
NexJ will be hosting an earnings report conference call today at 5:00 p.m. ET. The call can be accessed viawebcast or by phone by dialing 647-427-7450 (Toronto local or international) or 1-888-231-8191 (North America Toll Free). Investors should dial in approximately 10 minutes before the teleconference is scheduled to begin.
A replay of the call will be available beginning today at 8:00 p.m. ET through 11:59 p.m. on November 6, 2014 and can be accessed by dialing 416-849-0833 (Toronto local) or toll free at 1-855-859-2056 and using password 22642438.
Non-IFRS Measures
This news release includes certain measures that have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as Adjusted EBITDA and Adjusted EBITDA margin which are used to evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS. The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed below.
The term “Adjusted EBITDA” refers to net income/loss before adjusting for share-based payment expense, depreciation and amortization, lease-exit charges, net, earn-out expense (recovery), foreign exchange gain/loss, finance income, finance costs and income taxes. “Adjusted EBITDA margin” refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.
The term Adjusted EBITDA and Adjusted EBITDA margin are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.
The following table reconciles Adjusted EBITDA to net income (loss):
Financial Statements are available as a PDF download.
About NexJ Systems Inc.
NexJ is a provider of cloud-based software, delivering enterprise solutions for the financial services,insurance and healthcare industries. Our next-generation, people-centered software combines industry-specific functionality with information from multiple applications and data stores to provide comprehensive knowledge of the individual.
Based in Toronto, NexJ has clients throughout North America, Europe and Asia Pacific. For more information about NexJ, visit www.nexj.com, e-mail info@nexj.com, or call 416-222-5611. Join us onLinkedIn, follow us on Twitter, subscribe to our YouTube channel, like us on Facebook or hang out with us on Google+.
NexJ Forward-looking Statement
Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on NexJ’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. NexJ’s assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see NexJ’s securities filings with the OSC and other securities regulators. NexJ securities filings are available onwww.sedar.com. Unless otherwise required by applicable securities laws, NexJ disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information:
Matthew Bogart
Senior Director, Corporate Communications
NexJ Systems Inc.
416-227-3708