AirIQ Announces March 31, 2022 Year-End Results, Double-Digit Growth and Fifth Consecutive Year of Recurring Revenue Growth
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TORONTO, ON/ACCESSWIRE/July 14, 2022 / AirIQ Inc. (“AirIQ”) (TSXV:IQ), a leader in IoT-based asset management solutions for more than 25 years, today announced its financial results for the year ended on March 31, 2022, reporting its fifth consecutive year of recurring revenue growth.
“We are very pleased to once again report increases in many of our key metrics this year, including year-over-year increases of 10% in recurring revenue, 67% in hardware revenue, 18 % of total revenue, 7% of gross profit and 26% of net income,” said Mike Robb, President and CEO of AirIQ. “It’s been difficult the past two years due to the fallout from COVID, the microchip and product shortages and the shutdown of the 3G network by one of our wireless service providers,” Robb said, “however, the company not only overcame these hurdles, but continued to generate recurring growth in revenue and profitability for our shareholders,” continued Mr. Robb.
All dollar amounts set forth herein are in Canadian dollars.
The highlights of the year are as follows:
Annual Highlights (for the year ended March 31, 2022 compared to March 31, 2021):
- Recurring revenue of $3,503,788 for the year ended March 31, 2022 increased by 10% or $315,144 compared to $3,188,644 for the prior year period. Recurring revenues represented 80% of total revenues compared to 86% the previous year.
- Equipment and other revenue of $865,771 for the year ended March 31, 2022 increased by 67% or $346,340, compared to $519,431 for the prior year quarter. Hardware revenue accounted for 20% of total revenue, compared to 14% in the same period a year earlier.
- Total revenue of $4,369,559 for the year ended March 31, 2022 increased by 18% or $661,484 compared to $3,708,075 for the prior year period.
- Gross profit of $2,679,197 for the year ended March 31, 2022 increased by 7% or $185,137 compared to $2,494,060 for the prior year period.
- Gross margin of 61% for the year ended March 31, 2022 decreased 6% from 67% for the prior year period.
- Net income of $566,773 for the year ended March 31, 2022 increased by 26% or $117,290 compared to $449,483 for the prior year period.
- The cash balance of $1,899,508 for the year ended March 31, 2022 increased by 4% or $70,948 compared to $1,828,560 for the prior year period.
- Working capital of $2,167,505 for the year ended March 31, 2022 increased by 2% or $40,521 compared to $2,126,984 for the prior year period. (Working capital was calculated by netting current assets, excluding current costs of deferred revenue, and current liabilities, excluding deferred revenue which are non-cash items.)
Fourth Quarter Highlights:
- Recurring revenues of $939,745 for this quarter increased by 17% or $137,776 compared to $801,969 for the same quarter of the previous year, and increased by 4% or $36,700 compared to $903,045 in the previous quarter.
- Net earnings of $74,757 for the quarter increased by 152% or $45,091 compared to $29,666 for the same quarter last year and decreased by 13% or $11,389 compared to $86,146 for the previous quarter.
Normal Course Issuer Bid
The Company filed a notice of intention to make a normal course issuer bid (the “Offer”) with the TSX Venture Exchange (“TSXV”) from April 13, 2021 to April 12, 2022. Pursuant to the Offer, the Company has offered to purchase through the facilities of the TSXV up to 1,504,253 Common Shares, representing approximately 5% of the then issued and outstanding Common Shares of the Company. The Company’s broker for the Offer is Hampton Securities Limited.
During the year ended March 31, 2022, the Company repurchased for cancellation 507,000 common shares under the Offer for a total of $144,414 or approximately $0.28 per common share (March 31, 2021 – 250,000 common shares were repurchased for cancellation for a total of $83,162, or approximately $0.33 per common share), plus an additional brokerage fee of $2,856 was paid for the repurchase of the shares (March 31, 2021 – $2,500).
During the year ended March 31, 2021, normal course issuer bid redemptions were made pursuant to an offer filed with the TSXV for the period commencing March 27, 2020 and ending March 26, 2021. The Company’s broker for this offering was also Hampton Securities Limited. .
Stock option plan
A total of 150,000 common shares of AirIQ were issued from authorized capital following the exercise of stock options under the Company’s plan during the year ended March 31, 2022 for a total consideration of $22,500 (March 31, 2021 – 506,127 options exercised).
Normal Course Issuer Bid
Subsequent to year-end, on June 6, 2022, the Company announced the renewal of its normal course issuer bid to purchase up to 1,486,403 common shares representing 5% of the then issued and outstanding ordinary shares of the Company through the facilities of the TSXV during the period beginning on June 6, 2022 and ending on June 5, 2023 (the “Renewal Offer”). On July 13, 2022, the Company purchased for cancellation an additional 158,000 common shares under the Renewal Offer for an aggregate purchase price of approximately $43,734, or approximately $0.28 per share , and brokerage fees of $250 for this redemption.
At the time of this press release, the Company has a total of 29,570,074 common shares issued and outstanding.
SELECTED ANNUAL INFORMATION
In thousands of Canadian dollars
Equipment and other income
Gross margin %
Other expenses (3)
Total net income
Earnings per share, basic
Earnings per share, diluted
- Excluding stock-based compensation and exchange rates.
- EBITDAS represents earnings before interest and non-cash items: depreciation and amortization, impairment of long-lived assets and stock-based compensation.
- Includes notional non-cash charges such as interest, depreciation and amortization and stock-based compensation expense.
The company’s audited consolidated financial statements include the accounts of AirIQ and its subsidiaries, AirIQ US Holdings, Inc., AirIQ US, Inc. and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
The audited consolidated financial statements of the Company for the years ended March 31, 2022 and 2021, including the notes thereto, and the management’s discussion and analysis for the same period are filed with the Canadian securities authorities as of today’s date. today and will be available on the Company’s website (www.airiq.com) and on the System Electronic Document Retrieval and Analysis (“SEDAR”) website (www.sedar.com). The Company’s financial statements include the accounts of AirIQ and its subsidiaries, AirIQ US Holdings, Inc., AirIQ US, Inc. and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.
AirIQ (TSXV: IQ) celebrates its 25th anniversarye anniversary of its founding in 1997 and is a pioneer in IoT-based asset management solutions. AirIQ’s solutions enable commercial enterprises to reliably, effectively and efficiently monitor assets in near real-time. The company develops iOS and Android mobile and web applications, as well as cloud-based solutions that are standalone or can be easily integrated with existing software. AirIQ solutions are compatible with mixed fleets and provide fleet reporting, maintenance, compliance, security and analytics using multiple hardware options, including a fully integrated telematics video camera solution and a battery-powered solution for unpowered assets. For more information about AirIQ, please visit the company’s website at www.airiq.com or follow us on LinkedIn, Facebook, Twitter and Instagram.
This press release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements relate to, but are not limited to, AirIQ’s operations, expected financial performance, business prospects and strategies. Forward-looking information generally contains statements containing words such as “hope”, “target”, “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future results. These statements are based on certain important factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as set forth in the forward-looking statements, including AirIQ’s perception of historical trends, current conditions and developments. expected future and other factors. management considers appropriate in the circumstances. These forward-looking statements speak as of the date they are made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from expressed, anticipated or implied futures. by such forward-looking statements. These factors include, but are not limited to, market and competitive changes, technological and competitive developments, and potential downturns in general economic conditions. Therefore, actual results may differ materially from those expressed in these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans regarding the future. Readers are cautioned that this information may not be suitable for other purposes. Except as required by law, AirIQ disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of such information, future events or otherwise.
for more information please contact:
Michel Robb, President and Chief Executive Officer,
Neither the 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.
THE SOURCE: AirIQ Inc.
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