AirIQ Announces June 30, 2020 Quarterly Results; Reports Double Digit Recurring Revenue Growth

TORONTO, ON / ACCESSWIRE / August 20, 2020 / AirIQ Inc. (“AirIQ”) (TSXV:IQ), a supplier of wireless asset management services, today announced its financial results for the three months ended June 30, 2020, reporting an 11% increase in recurring revenue, a 12% increase in net income, and a 35% increase in working capital, when compared to the same period the previous year.

“Despite the onset of the global pandemic, AirIQ was still able to achieve double digit growth in our recurring revenue, (which is a key metric for the Company ), compared to the previous quarter, as well as increases in net income and working capital, which further strengthens our financial position during these extraordinary times,” said Michael Robb, President and Chief Executive Officer of the Company. “The decrease in hardware revenue compared to the same period last year was due to a large order last year that did not re-occur this year,” continued Mr. Robb.

Highlights for the three months ended June 30, 2020 compared to June 30, 2019 are as follows:

• Recurring revenue increase of 11% or $76,687 to $776,630 from $699,943
• Net income increase of 12% or $20,408 to $181,286 from $160,878
• Cash balance increase of 150% or $1,213,996 to $2,024,712 from $810,716
• Gross margin increase of 24% to 66% from 42%
• Working capital increase of 35% or $598,956 to $2,319,080 from $1,720,124 (Working capital is defined as total current assets, excluding current costs of deferred revenues, less total current liabilities, excluding deferred revenue and lease obligation. Costs of deferred revenues, deferred revenues, and lease obligations are non-cash items.)
• Operating profits decrease of 8% or $25,549 to $284,039 from $309,588
• Gross profit decrease of 18% or $134,549 to $600,110 from $734,659
• Total revenue decrease of 48% or $850,868 to $912,825 from $1,763,693
• Hardware and other revenue decrease of 87% or $927,555 to $136,195 from $1,063,750

Business Review

The Company is focusing its efforts and resources on revenue growth and profitability by continuing to offer leading-edge technology solutions for existing and new customers. We continue to focus on recurring revenues, gross profits and improving cash-flows to build a sustainable business. Recently, the Company announced the launch of a fully integrated camera and telematics solution to penetrate an under-served market which is anticipated to drive further recurring revenue growth in the future.

The Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the “Bid”) with the TSX Venture Exchange (“TSXV”) commencing March 27, 2020 and ending on March 26, 2021. Pursuant to the Bid, the Company proposed to purchase through the facilities of the TSXV up to 1,491,447 common shares, representing approximately 5% of the then issued and outstanding common shares of the Company.

Overview

The Company’s unaudited consolidated condensed interim financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.

Financial Statements & MDA

The Company’s unaudited consolidated condensed interim financial statements for the three months ended June 30, 2020 and 2019 including notes thereto, and Management’s Discussion and Analysis for the same period are being filed with the Canadian securities regulatory authorities on today’s date, and will be available on the Company’s website (www.airiq.com) and on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website (www.sedar.com). The Company’s financial statements include the accounts of AirIQ and its subsidiaries, AirIQ U.S. Holdings, Inc., AirIQ U.S., Inc., and AirIQ, LLC. All inter-company balances and transactions have been eliminated on consolidation.

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ is an intuitive web-based platform that provides fleet operators and vehicle owners with a suite of asset management solutions to reduce cost, improve efficiency and monitor, manage and protect their assets. Services are available online or via a mobile app, and include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. AirIQ’s office is located in Pickering, Ontario, Canada. For additional information on AirIQ or its products and services, please visit the Company’s website at www.airiq.com.

Forward-looking Statements

This news release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as “hope”, “goal”, “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ’s perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is 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 future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

For more information please contact

AirIQ Inc.
Michael Robb
President and Chief Executive Officer
(905) 831-6444
mrobb@airiq.com

Neither 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.

SOURCE: AirIQ Inc.

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