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Cortex Business Solutions Reports Strong Q1 Fiscal 2018 Financial Results

Positive cash flows from operations and record Adjusted EBITDA(1)

CALGARY, ALBERTA – December 5, 2017 - Cortex Business Solutions Inc. (TSXV: CBX), a North American network-as-a-service e-invoicing solutions provider, today announces its three months ended October 31, 2017 (“Q1 F2018”) Management’s Discussion and Analysis and Consolidated Financial Statements. 

“As represented by our successful quarter over quarter growth of 31% in top line revenue and a relatively flat cost line, Cortex’s push to grow revenue and Adjusted EBITDA(1) with our current team is working. We will continue to focus on these metrics and to improve them to grow our business” said Joel Leetzow, President and CEO of Cortex Business Solutions.  “With substantial milestones achieved in our product, a repeatable business model, the implementation of a proven sales strategy combined with the delivery of set-up and integration services, Cortex is positioned to sustain and build on results from this quarter and achieve continued growth and value for its stakeholders”.

“Cortex continues to deliver improved results each quarter and has achieved its highest Adjusted EBITDA(1) in the history of the company” said Jason Baird, VP, Finance & CFO of Cortex Business Solutions.  “I am very excited to be joining Cortex at this stage of its development and growth. With a strong balance sheet, $6.6 million in cash and debt free, Cortex is on track to grow its business”. 

Q1 F2018 Financial Highlights (as compared to Q1 F2017)

  • Positive cash flow from operating activities increased 349% to $0.3 million from negative cash flows from operating activities of $(0.1) million
  • Overall revenue increased 31% or by $0.7 million to $3.2 million from $2.5 million
  • Access and usage fees increased 20% or by $0.5 million to $2.8 million from $2.3 million
  • Gross profit improved 46% or by $0.8 million to $2.4 million from $1.6 million
  • Net income improved 409% or by $0.5 million to $0.4 million from $(0.1) million
  • Adjusted EBITDA(1)  increased 895% or by $0.6 million to $0.5 million from $0.1 million


Cash Position

The overall cash position of Cortex improved 6% to $6.6 million at October 31, 2017 from $6.2 million 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 October 31, 2017 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

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


The details of the conference call are as follows:


Date: Wednesday, December 6, 2017

Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time) 

Toll-free dial-in number: 1-800-377-0758

International dial-in number: 1-416-340-2216


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 December 13, 2017


Toll-free replay number: 1-800-408-3053

Toll replay number: 1-905-694-9451

Replay ID: 5405733#


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About Cortex Business Solutions

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


Investor Relations Contacts:

Joel Leetzow Jason Baird                        Andrew Stewart
President & CEO VP, Finance & CFO Director, Marketing & Investor Relations