Mr. Randy Fowlie reports
RDM CORPORATION REPORTS FISCAL 2015 SECOND QUARTER FINANCIAL RESULTS
RDM Corp. has released its financial results for the three and six months ended March 31, 2015. All financial results are reported in thousands of United States dollars unless otherwise stated.
Second quarter fiscal 2015 highlights (unless otherwise noted, comparisons are made between second quarter fiscal 2015 and second quarter fiscal 2014)
- Total revenue increased 11 per cent to $5,758 from $5,185.
- Recurring payment processing revenue improved 9 per cent to $3,356 from $3,091.
- Total payment processing revenue was $3,544 compared with $3,615.
- Digital imaging revenue grew by 41 per cent to $2,214 from $1,570.
- Operating income increased 68 per cent to $1,059 compared with $628.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved 50 per cent to $1,431 from $952.
- Net income grew 21 per cent to $789 from $652.
- Generated $621 in cash from operations, ending the quarter with $23,436 in cash and cash equivalents.
- Added 1,710 new end-user seats bringing RDM's ITMS network to a total of 39,777 seats, an increase of 15 per cent year over year and 4 per cent over the prior quarter.
- Two new financial institutions selected RDM to replace existing RDC providers in the quarter.
- The board of directors declared a quarterly cash dividend of 1.5 cents per share.
Year-to-date highlights (unless otherwise noted, comparisons are made between year-to-date fiscal 2015 and fiscal 2014)
- Total revenue increased 6 per cent to $11,604 from $10,936.
- Recurring payment processing revenue grew 7 per cent to $6,599 from $6,157.
- Total payment processing revenue was $6,941 compared with $7,140.
- Digital imaging revenue grew by 23 per cent to $4,663 from $3,796.
- Operating income increased 52 per cent to $2,076 compared with $1,369.
- Adjusted EBITDA improved 39 per cent to $2,807 from $2,014.
- Net income grew 34 per cent to $1,912 from $1,432.
- Generated $1,473 in cash from operations, up 25 per cent from $1,182.
"Growth in both our recurring payment processing and digital imaging revenue translated into increased profitability in the quarter. In addition, we continue to see evidence of strong market acceptance this quarter with two new financial institutions selecting RDM to replace existing RDC providers," said Randy Fowlie, president and chief executive officer of RDM. "One is a top 30 United States bank and the other is a large international bank. We look forward to partnering with these two new customers going forward."
Dividend
A quarterly dividend of 1.5 cents per share will be paid on June 8, 2015, to shareholders of record on May 25, 2015. The dividends to be paid on May 25, 2015, are designated as eligible dividends for the purpose of Section 89 of the Income Tax Act (Canada).
Conference call
RDM will be hosting a conference call to discuss the company's 2015 second quarter results on Thursday, April 30, 2015, at 9 a.m. Eastern Daylight Time. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived for 14 days at the company's website. Detailed financial results and management's discussion and analysis (MD&A) will be filed on SEDAR.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(amounts in thousands of dollars, except per share data)
Three months ended Six months ended
March 31, March 31,
2015 2014 2015 2014
Revenue
Payment processing services $3,544 $3,615 $6,941 $7,140
Digital imaging products 2,214 1,570 4,663 3,796
5,758 5,185 11,604 10,936
Cost of revenue 2,322 2,096 4,735 4,760
Gross profit 3,436 3,089 6,869 6,176
Operating expenses
Sales and marketing 737 722 1,487 1,488
Research and development 1,143 1,176 2,306 2,232
General and administration 497 563 1,000 1,087
2,377 2,461 4,793 4,807
Operating income 1,059 628 2,076 1,369
Other items (loss)
Foreign exchange gain (loss) (31) 39 (15) 93
Interest income 16 9 31 18
Other income (loss) - - 120 -
(15) 48 136 111
Income before income taxes 1,044 676 2,212 1,480
Current income tax expense 255 24 300 48
Net income $789 $652 $1,912 $1,432
Earnings per share -- basic and diluted $0.04 $0.03 $0.09 $0.07
We seek Safe Harbor.
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