VANCOUVER, British Columbia, April 20, 2018 (GLOBE NEWSWIRE) -- RSI International Systems Inc. (TSX-V:RSY) (“RSI” or the “Company”) is pleased to provide the following commentary further to its financial statements as released April 20, 2018.
RSI President and CEO, Tim Major, commented, “We made very good progress in 2017 by reducing our Operating Free Cash Flow deficit by over $550,000 or 43%. This progress would have been even greater, had it not been for two significant Q4 items, a large one-time cost to reduce our office space and the full accounting recognition of a fee-billing dispute with one of our customers.”
As detailed in news releases from February 18, 2018 and November 3, 2017, the Company settled a billing dispute with one of its customers in part by agreeing to pay the customer $130,000 in twelve installments, beginning March 1, 2018. Although the monthly payments are made in future periods, under accounting rules, the total amount of the payments was recorded in Q4 2017. As also discussed in the November 3, 2017 news release, the Company reduced its leased office space, with projected savings of approximately $25,000 to $30,000 a month, beginning February 1, 2018. In order to effect this reduction, the Company incurred a one-time fee of approximately $90,000 in Q4 2017.
Mr. Major concluded, “We continue to seek ways to reduce our operating expenses in order to improve the Company’s financial health and best position ourselves to deliver value to our shareholders.”
For more information on these matters, please see the Company’s Financial Statements and Management Discussion & Analysis, as released April 20, 2018. For more information on the Company’s products and services, please visit www.roomkeypms.com.
As illustrated in Table 1 below, during the twelve months of 2017, the Company significantly reduced its Operating Free Cash Flow deficit, versus the same period in 2016. Specifically, the Company’s Operating Free Cash Flow deficit for 2016 was (-$1,281,128). In 2017, this deficit was reduced to (-$727,387), an improvement of $553,741 or 43%.
Table 1 (All figures C$ and taken from the Company’s applicable period financial statements)
| Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | |||||||||||||||||
| Cash Flow from Operations | $ | 9,524 | $ | (256,696 | ) | $ | (91,055 | ) | $ | (76,683 | ) | $ | 48,554 | $ | 112,500 | $ | 10,717 | $ | (343,840 | ) | ||||
| Equipment & Technology Investment | $ | (198,921 | ) | $ | (262,343 | ) | $ | (203,508 | ) | $ | (201,446 | ) | $ | (158,283 | ) | $ | (174,824 | ) | $ | (166,762 | ) | $ | (55,449 | ) |
| OPERATING FREE CASH FLOW | $ | (189,397 | ) | $ | (519,039 | ) | $ | (294,563 | ) | $ | (278,129 | ) | $ | (109,729 | ) | $ | (62,324 | ) | $ | (156,045 | ) | $ | (399,289 | ) |
| Change in Working Capital | $ | (20,175 | ) | $ | (114,365 | ) | $ | 176,836 | $ | (49,375 | ) | $ | 19,551 | $ | (30,255 | ) | $ | (126,987 | ) | $ | 400,404 | |||
| Net Free Cash Flow | $ | (209,572 | ) | $ | (633,404 | ) | $ | (117,727 | ) | $ | (327,504 | ) | $ | (90,178 | ) | $ | (92,579 | ) | $ | (283,032 | ) | $ | 1,115 | |
The Company defines Operating Free Cash Flow as cash flows from business activities that are not related to working capital management and financing activities. It calculates the figure from the Statements of Cash Flows as the sum of Cash provided by / used in operating activities, minus bad debt expense, before changes in non-cash working capital items, and Cash Used in Investing Activities. Versus Basic or Net Free Cash Flow, Operating Free Cash Flow does not take into account changes to non-cash working capital items and financing activities as those activities can have significant timing components that are not directly related to the operating activities of the business during a particular period and therefore, have the potential to mask the true operational cash flow of the business.
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.
About RSI
RSI International Systems Inc. is the developer of RoomKeyPMS, a web-based Property Management System (PMS) that incorporates a fully integrated Online Reservation Booking engine and seamless real-time connectivity to the major Global Distribution and Internet Distribution Systems. RSI markets its RoomKeyPMS and a number of other proprietary “hosted” software solutions to a wide variety of Hospitality Industry clients around the world. For more information, please see our website at www.roomkeypms.com
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements. Any statements that are not strictly historical fact are considered "forward-looking statements." Forward-looking statements cannot be guaranteed and involve assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and not place undue reliance upon forward-looking statements. Any forward-looking statements made herein are made as of the date hereof, and the Company assumes no obligation and disclaims any intention to revise or update any forward-looking information and statements except as required by applicable laws.
For more information, please contact:
RSI Systems International Inc.
Tim Major, President & CEO
604-914-3711
tmajor@roomkeypms.com