Posera-HDX Announces Financial Results for the Third Quarter of 2012

Posera-HDX Announces Financial Results for the Third Quarter of 2012 
TORONTO, Nov. 14, 2012 /CNW/ - Posera-HDX Ltd. ("Posera-HDX") (the Company) 
announced today its financial results for the three and nine-months ended 
September 30(th), 2012. Posera-HDX is listed on the TSX under the symbol "HDX". 
Paul Howell, Chief Executive Officer, reports: 
While fourth quarter business activity has improved drastically, the third 
quarter of 2012 was a difficult period. There were fewer new restaurants 
opened because of the worldwide economy. There were also fewer restaurant 
renovations and technology refreshes. The lack of available third party lease 
funding for clients resulted in fewer restaurants being approved for 
technology financing, the reseller community experienced lower than expected 
software sales and a major vendor to Posera-HDX had significant inventory 
availability issues. These factors have resulted in slower than expected sales 
activity in the third quarter of 2012. Sales and service revenues for the 
three-months ended September 30, 2012 were $4,032,574 representing a decrease 
of 11.2% from $4,541,336 from the three-months ended September 30, 2011. 
Excluding the Company's investment in the payment processing division, 
one-time expenses and non-cash costs associated with the amortization of 
acquired intangible assets, property plant and equipment and stock-based 
compensation, the Company would have recognized normalized EBITDA profit of 
$140,401 for the three-months ended September 30, 2012. 
The Company experienced a normalized EBITDA loss of ($32,206) for the 
three-months ended September 30, 2012 of which, $172,607 is due to the ongoing 
expenses related to the Company's investment strategy for our payment 
processing division. Additionally, the Company incurred $107,964 of one-time 
expenditures during the three-months ended September 30, 2012. 
Company-wide non-cash amortization of intangible assets and property plant and 
equipment was $365,470 and stock-based compensation was $87,239, for the 
three-months ended September 30, 2012. HDX Payment Processing Ltd. ("HDXPP") 
(the acquired Cash N Go Ltd. payments processing division) experienced a loss 
of $194,551 and Posera-HDX Scheduler Inc. (the acquired assets of 2020 
Hyperscheduler / Hypervison) experienced a loss of $38,959. The Company 
expects to continue to make significant investments in these divisions into 
the foreseeable future and will strive to increase revenue for these divisions 
and products as quickly as possible. 
Posera-HDX Ltd. continues to invest and focus on developing significant new 
revenue opportunities that are complimentary to the Company's current 
operational foundation and synergistic with the Company's intellectual 
property assets. New software as a service ("SaaS") products and business 
modules with recurring revenue are under construction. This will allow the 
Company to deliver an enhanced range of services to the Company's current 
client base and will bolster the Company's ability to attract new customers. 
Following the acquisition of HDXPP in December 2011, and following the 
announcement on June 14(th), 2012 that the Company has been approved for 
membership to the Interac Association as an Indirect Connector to perform the 
functions of an Acquirer in the Shared Cash Dispensing ("SCD") Service, 
Posera-HDX continues to make significant investments to enhance systems, 
facilities, and operating procedures in order to secure the necessary 
approvals to operate a payment processing switch and an ATM transaction 
processing switch. Through HDXPP, Posera - HDX owns and operates a Postillion 
payment switch developed by S1 Corporation. In addition, to the provision of 
SCD services, Posera-HDX plans to expand the payment switch to facilitate the 
processing of Point-of-Sale transactions for its merchant client base. HDXPP 
has retained team members and contractors with the appropriate industry 
expertise to allow the Company to further develop the payment processing 
division with an eye toward monetizing the Company's investment in this 
division as quickly as possible. To take advantage of the convergence in 
retail technologies currently underway, the Company continues to pursue merger 
and acquisition opportunities with complimentary organizations although none 
are specifically named at this time. 
Highlights and Summary - Three-months ended September 30, 2012 (Unaudited) 


    --  Net loss for the three-months ended September 30, 2012 was a
        loss of $679,992, an increase of $459,356 from a loss of
        $220,636 for the three-months ended September 30, 2011, and an
        increase of $238,966 from a loss of $441,026 for the
        three-months ended June 30, 2012;
    --  EBITDA for the three-months ended September 30, 2012, was
        ($227,409), a decrease of $372,926 from $145,517 for the
        three-months ended September 30, 2011, and a decrease of
        $93,166 from ($134,243) for the three-months ended June 30,
        2012;
    --  Normalized EBITDA for the three-months ended September 30, 2012
        was ($32,206), a decrease of $416,620 from $384,414 for the
        three-months ended September 30, 2011, and a decrease of
        $32,963 from $757 for the three-months ended June 30, 2012;
    --  Total revenue was $4,032,574 for the three-months ended
        September 30, 2012, down $508,762 (11.2%) from $4,541,336 for
        the three-months ended September 30, 2011 and down $213,386
        (5.0%) from $4,245,960 for the three-months ended June 30,
        2012;
    --  Gross profit was $1,503,360 for the three-months ended
        September 30, 2012, down $409,992 (21.4%) from $1,913,352 for
        the three-months ended September 30, 2011, and down $50,558
        (3.3%) from $1,553,918 for the three-months ended June 30,
        2012;
    --  Operating expenses were $2,096,239 for the three-months ended
        September 30, 2012, up $10,540 (0.5%) from $2,085,699 for the
        three-months ended September 30, 2011, and up  $38,234 (1.9%)
        from $2,058,005 for the three-months ended June 30, 2012;
    --  Included in cost of sales and operating expenses for the
        three-months ended September 30, 2012, September 30, 2011 and
        June 30, 2012 were certain one-time non-recurring expenditures
        and non-cash stock-based compensation expense (recovery)
        totaling $195,203, $238,897 and $135,000 respectively as
        referenced on pages 18-19 of this MD&A;
    --  Posera-HDX's cash and cash equivalents totaled $671,341 as at
        September 30, 2012, an increase of $237,482 (54.7%) from
        $433,859 as at September 30, 2011, and a decrease of $780,861
        (53.8%) from $1,452,212 as at June 30, 2012. Bank indebtedness
        was $236,060 as at September 30, 2012, an increase of $43,510
        (22.6%) compared to $192,550 as at September 30, 2011, and an
        increase of $401 (0.2%) compared to $235,659 as at June 30,
        2012; and
    --  Posera-HDX's working capital totaled $1,506,701 as at September
        30, 2012, an increase of $302,680 (25.1%) from $1,204,021 as at
        September 30, 2011, and a decrease of $503,848 (25.1%) from
        $2,010,549 as at June 30, 2012.

About Posera-HDX Limited (the "Company)

The Company is in the business of managing merchant transactions with 
consumers and facilitating payment. The Company develops and deploys touch 
screen POS system software and associated enterprise management tools and has 
developed and deployed numerous POS applications. Posera-HDX also provides 
system hardware integration services, merchant staff training, system 
installation services, and post-sale software and hardware support services.

The Company's leading edge technology also includes prepaid stored value 
payments solutions, customer self-serve kiosks and "line buster" mobile point 
of sale terminals. These products have been designed to dramatically enhance 
customer throughput and drastically reduce customer queues. These technologies 
are especially effective in high foot traffic environments that have limited 
cash register counter space, limited retail square footage, and the absence of 
a drive through.

Through its corporate offices in Toronto, London, Brantford, Seattle 
Washington, Montreal, Paris, Singapore, and Glasgow, Posera-HDX has a direct 
sales and service team.

The company has also built a network of approximately 112 value added resale 
partner companies in 25 countries. There are approximately 1,100 
representatives selling, supporting & installing the Posera-HDX Maitre 'D 
software worldwide and the solution has been deployed in over 20,000 locations 
in eight different languages around the world.

Posera-HDX customers include Tim Hortons, Wendy's, Arby's, Quick (France), 
Popeye's, East Side Mario's, O'briens, St-Hubert, Pita Pit, Popeye's, Dunkin' 
Donuts, Pizza Delight, Baton Rouge, Scores, Hooters, Casey's, Supermac's, 
HDOS, KFC, Extreme Pita, Pizza Hut, among many others.

Forward-Looking Statements

This discussion includes certain forward-looking statements that are based 
upon current expectations, which involve risks and uncertainties associated 
with our business and the environment in which the business operates. Any 
statements contained herein that are not statements of historical facts may be 
deemed to be forward-looking, including those identified by the expressions 
"anticipate", "believe", "plan", "estimate", "expect", "intend", and similar 
expressions to the extent they relate to the Company or its management. The 
forward-looking statements are not historical facts, but reflect the Company's 
current expectations regarding future results or events. These 
forward-looking statements are subject to a number of risks and uncertainties 
that could cause actual results or events to differ materially from current 
expectations, including the matters discussed under "Risks and Uncertainties" 
in the Annual Information Form of Posera - HDX Inc. filed on March 29(th), 
2012 with the regulatory authorities. Posera-HDX assumes no obligation to 
update the forward-looking statements, or to update the reasons why actual 
results could differ from those reflected in the forward-looking statements.

Paul Howell Chief Executive Officer Posera-HDX Limited 350 Bay Street, Suite 
700 Toronto, Ontario M5H 2S6 (416) 703-6462 ext. 2263

SOURCE: Posera-HDX

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CO: Posera-HDX
ST: Ontario
NI: ECOM ERN 

-0- Nov/14/2012 21:57 GMT


 
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