CORRECTION – Cortex Business Solutions Announces Q3 Fiscal 2018 Financial Results

CALGARY, Alberta, June 12, 2018 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Cortex Business Solutions Inc. (TSXV:CBX), we are advised by the company there have been numerous changes to figures in the financial tables. Complete corrected text follows.

Cortex Business Solutions Announces Q3 Fiscal 2018 Financial Results

Record Adjusted EBITDA⁽¹⁾ and cash flows from operations supported by 15% YOY revenue growth

CALGARY, Alberta, June 12, 2018 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (“Cortex”) (TSXV:CBX), a North American network-as-a-service e-invoicing solutions provider, today announces its three and nine months ended April 30, 2018 (“Q3 F2018”) Management’s Discussion and Analysis and Consolidated Financial Statements. 

“I believe these results are just the beginning of the momentum that we are building at Cortex. Our team has remained focused on helping our customers to deliver their own results and savings with our ever-expanding service. We have never helped as many suppliers get paid as quickly as we have in this past quarter and our recently released payments business is now one of the fastest growing income lines at Cortex. I could not be more excited with the trajectory that Cortex is on,” said Joel Leetzow, President and CEO of Cortex Business Solutions.

“Cortex was successful in growing its recurring access revenue YTD by 26% and overall YTD revenue by 15% compared to prior year. Along with another quarter of record adjusted EBITDA, these results and the large cash balance will allow Cortex to explore further growth through M&A and developing new products internally,” said Jason Baird, VP, Finance & CFO of Cortex Business Solutions. “I believe Fiscal 2018 results has confirmed that Cortex is on the right path to achieving its long-term growth strategy.”

Q3 F2018 Financial Highlights

Three months ended April 30, 2018 compared to April 30, 2017

• Adjusted EBITDA⁽¹⁾ increased 264% or by $0.4 million to $0.6 million from $0.2 million
• Positive cash flow from operating activities increased 249% to $0.8 million from positive cash flows from operating activities of $0.2 million
• Overall revenue increased 6% or by $0.2 million to $3.1 million from $2.9 million
• Access and usage fees increased 12% or by $0.3 million to $2.9 million from $2.6 million
• Gross profit improved 11% or by $0.2 million to $2.3 million from $2.1 million
• Net income improved 3,147% or by $0.6 million to $0.6 million from $0.02 million

Nine months ended April 30, 2018 compared to April 30, 2017

• Adjusted EBITDA⁽¹⁾ increased 358% or by $1.3 million to $1.7 million from $0.4 million
• Positive cash flow from operating activities increased materially to $1.3 million from positive cash flows from operating activities of $0.006 million
• Overall revenue increased 15% or by $1.3 million to $9.4 million from $8.1 million
• Access and usage fees increased 17% or by $1.2 million to $8.6 million from $7.3 million
• Access fees increased 26% to $5.6 million from $4.4 million
• Gross profit improved 24% or by $1.2 million to $6.9 million from $5.7 million
• Net income improved 565% or by $1.6 million to $1.3 million from $(0.3) million

Cash Position

The overall cash position of Cortex improved 21% to $7.6 million at April 30, 2018, 2018 from $6.2 million at July 31, 2017 driven predominantly from an increase in net cash provided by operating activities mainly from higher access and usage fees and project management revenues. 

⁽¹⁾ Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-recurring charges and share based payments. Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. This measure assists the Company in evaluating the Company’s operating performance against its expectations and against other entities. Please refer to the Company’s management’s discussion and analysis for the quarter ended January 31, 2018 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

Cortex’s management will host a conference call, followed by a question and answer period. 

The details of the conference call are as follows:

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex Business Solutions at 403 219-2838.

A replay of the conference call will be available after the call through June 20, 2018.

About Cortex

Cortex’s strategy is to revolutionize B2B document exchange by replacing traditional paper-based manual systems with automated e-invoicing. This positions companies with the scalability and flexibility needed to meet the demands of today’s business. Cortex offers a B2B network that enables electronic invoicing for buying and supplying organizations using flexible connection methods to leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to grow their businesses.

Cortex is currently delivering e-invoicing services to over 10,000 Trading Partners in Oil & Gas, Mining, Manufacturing and Sports & Entertainment industries, with a focused expansion into additional verticals.

For more information, please visit www.cortex.net.

Investor Relations Contacts:

Joel Leetzow               
President and CEO         
jleetzow@cortex.net    
403-219-2838       
             
Jason Baird         
VP, Finance & CFO    
jbaird@cortex.net
403-219-2838    

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statements of Financial Position

(Prepared in Canadian Dollars)
(Unaudited)

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Income (Loss) and Comprehensive Income (Loss)
For the three and nine months ended April 30, 2018 and 2017

(Prepared in Canadian Dollars)
(Unaudited)

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity

(Prepared in Canadian Dollars)
(Unaudited)           

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Cash Flows
For the three and nine months ended April 30, 2018 and 2017

(Prepared in Canadian Dollars)
(unaudited)