VANCOUVER, British Columbia, Aug. 23, 2018 (GLOBE NEWSWIRE) -- RSI International Systems Inc. (TSX-V: RSY) (“RSI” or the “Company”) has provided the following commentary further to its second quarter 2018 interim financial statements as released August 23, 2018.
RSI President and CEO, Tim Major commented, “For the past year and a half we have been diligently working to increase our efficiency and reduce the monthly cash burn for our business. Great progress has been made and I am very pleased to announce that we are Operating Free Cash Flow positive for the second quarter.”
Mr. Major added, “While we are proud of this progress, we have much work to do in order to deliver better value to our shareholders. To this end, we are investigating the best ways to increase the value of our Company.”
As discussed in a news release dated April 20, 2018, the Company reduced its annual Operating Free Cash Flow deficit from (-$1,281,128) in 2016, to a deficit of (-$727,387) in 2017. As illustrated in Table 1 below, the Company was Operating Free Cash Flow positive in Q2 2018 by $23,933, versus a deficit of (-$62,324) in Q2 2017. For the first six months of 2018, the Company has reduced its Operating Free Cash Flow deficit to (-$101,115) versus a deficit of (-$172,053) in the first six months of 2017. This represents an improvement of 41%.
For more information on these matters, please see Table 1 below, as well as the Company’s Financial Statements and Management Discussion & Analysis, as released August 23, 2018. For more information on the Company’s products and services, please visit www.roomkeypms.com.
| Table 1 (All figures C$ and taken from the Company’s applicable period financial statements) | |||||||||||||||||||||||||||
| Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||||
| Cash Flow from Operations | $ | (256,696 | ) | $ | (91,055 | ) | $ | (76,683 | ) | $ | 48,554 | $ | 112,500 | $ | 10,717 | $ | (343,840 | ) | $ | (97,194 | ) | $ | 45,935 | ||||
| Equipment & Technology Investment | $ | (262,343 | ) | $ | (203,508 | ) | $ | (201,446 | ) | $ | (158,283 | ) | $ | (174,824 | ) | $ | (166,762 | ) | $ | (55,449 | ) | $ | (27,854 | ) | $ | (22,002 | ) |
| OPERATING FREE CASH FLOW | $ | (519,039 | ) | $ | (294,563 | ) | $ | (278,129 | ) | $ | (109,729 | ) | $ | (62,324 | ) | $ | (156,045 | ) | $ | (399,289 | ) | $ | (125,048 | ) | $ | 23,933 | |
| Change in Working Capital | $ | (114,365 | ) | $ | 176,836 | $ | (49,375 | ) | $ | 19,551 | $ | (30,255 | ) | $ | (126,987 | ) | $ | 400,404 | $ | (6,900 | ) | $ | 21,129 | ||||
| Net Free Cash Flow | $ | (633,404 | ) | $ | (117,727 | ) | $ | (327,504 | ) | $ | (90,178 | ) | $ | (92,579 | ) | $ | (283,032 | ) | $ | 1,115 | $ | (131,948 | ) | $ | 45,062 | ||
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