RSI Releases Q1 2012 Financial Statements

  • RSI International Systems, Inc.
  • 06.08.12
RSI International Systems Inc. (RSY: TSX-V) has released its consolidated financial statements for the quarter ended March 31, 2012 and related Management's Discussion and Analysis, which are available for viewing on SEDAR (www.sedar.com).

Sales

2011 was a year of strong financial growth and operational execution for the Company producing the best operating results in the Company’s history.  Growth of revenue, gross margin, EBITDA and net income reached record levels reflecting the continued strength and appeal of the Company’s core Property Management System software product within both its installed base and new customers.  This growth came from the sustained focus on enhancing the RoomKey PMS product, exceptional customer service delivery, and increasing organic growth in its targeted markets.

Business Results

The first quarter of 2012 continued the successful sales trend experienced through F 2011, which were the best in RSI’s 33-year history.

Results for Q1 2012 exceeded the budgeted target for the quarter, and the results for same quarter last year (2011). The Company exceeded Q1 2011 hotel unit sales by 37%.

Similarly, ‘rooms-under-management’ increased by 70% and the resulting projected revenue increased by 15% for the quarter.

Sales & Marketing continued to focus on more and better qualified lead generation efforts using various channels to deliver active and motivated customer prospect inquiries. As a result, not only is the company closing more business, the lead time to close a prospect has dropped by 60% over Q1 2011.

Lead generation activities during Q1 2012 showed an ROI of over 400%. With a preference for ‘measured-marketing’ techniques, the company continues to implement and carefully measure the results of marketing/advertising efforts in order to maximize the results.

Significant Financial Highlights for Q1 2012

  • RSI’s cash position improved significantly from the end of 2011.
  • The company has produced earnings per share of 4 cents over the trailing 12-month period.
  • The company’s overall balance sheet improved by 27% over end of 2011.
  • New properties in Q1 were 26 (vs. 19 in Q1 2011 or +37%).
  • 1st quarter revenue of $989,502 as compared to $349,258 for the same period previous year.
  • Total net cash generated in the first quarter of 2012 was $143,910 as compared to $(37,264) in the same period of 2011.
  • The company’s EBITDA as a percentage of total revenue was 21% as compared to 11-15% of industry norm.
  • The company’s marketing campaign investment continues to deliver results and positive ROI.

Outlook

Through Q1 2012, RSI continued to add resources to marketing channels, and to measure results of expenditures for ROI. Q1 ROI for key initiatives was over 400%. The Company continues to further refine its optimal target market, and align acquisition efforts and tools to that target.

The company continues to evolve elements of both its product set, and its ‘take-to-market’ strategies in an effort to create tangible points of difference that appeal to the calibre of customer that the Company is targeting.

RSI continues to increase its capability and capacity to train and send ‘live’ newly acquired hotels, and to provide the outstanding after sales service it is justifiably known for by its customers.

The company is creating additional awareness in the marketplace both through public relations communication, and via customer-focused marketing channels. Such channels will continue to be enhanced with prudent spending and measurement through the next quarter. 

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the company's consolidated financial statements as at and for the quarter ended March 31, 2011 and the related notes thereon and Management's Discussion and Analysis, which are available on SEDAR at www.sedar.com.




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