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Cortex Reports Fiscal 2015 Third Quarter Financial Results

CALGARY, ALBERTA – June 15, 2015 – Cortex Business Solutions Inc. (TSXV: CBX), the pioneering online network that helps companies connect and interact with each other to transmit documents and grow their businesses, today announces its Q3 F2015 Financial Results.

Operational Highlights:

  • During Q3 F2015, the Company sold four new buying organizations to receive invoices on the Cortex Trading Partner Network (“CTPN”). During the quarter three buying organizations stopped receiving invoices on the CTPN; two buying organizations were acquired and one buying organization, who was a user of our basic product, was decommissioned.
  • As of April 30, 2015 active buying organizations on the Network increased 22% to 84, compared to 69 active at April 30, 2014.
  • The impact of the slowdown in the energy business activity caused a reduction in billable transactions:
    • Increased 2% Q3 F2015 over Q3 F2014 (Q3 F2015 -1,221,999; Q3 F2014 -1,203,283)(year over year);
  • The Company saw a 10% increase in revenue during the same period.
    • Declined 14% Q3 F2015 over Q2 F2015 (Q3 F2015 -1,221,999; Q2 F2015 -1,423,818)(quarter over quarter);
  • There was a 6% decline in revenue during the same period, which is expected with the cyclical nature of some of our customers.
    • As the recurring revenue stream is made up of a flat fee and a transactional fee; the downward trend in the transactions does not have an equivalent impact to revenue.
  • Active suppliers on the Cortex Network
    • Increased 14% Q3 F2015 over Q3 F2014 (year over year)
    • Increased 2% Q3 F2015 over Q2 F2015 (quarter over quarter)
  • The Company released its Field Ticket Approval product on May 16, 2015. This functionality will eliminate manual processes associated with the approval of invoices and field tickets, continuing to increase the velocity of money on our network. The same product release included a notification framework that allows users to receive email notifications regarding any unread messages or invitations, as well as status updates for suppliers.

The Q3 F2015 financial highlights are:

  • Total revenue year over year is up Q3 F2015 to$2,640,897, an improvement of 10% over Q3 F2014 total revenue of $2,390,652.
  • Due to the seasonal nature of some of our customers business revenue is down 6% quarter over quarter, from Q2 F2015, which is to be expected (Q3 F2015 - $2,640,897; Q2 F2015 - $2,823,082).
  • Cash used in the operations before working capital changes and employment termination expenses decreased to $(913,256) in Q3 F2015 from $(1,173,656) in Q3 2014 and increased from $(597,490) in Q2 2015. During the quarter there was a net $230,634 worth of expenditures related to the CEO transition, which will not continue past mid May 2015. Cash gross profit improved to 64% in Q3 2015 from 60% in Q3 2014. AP service fees, credit card discounts and partner commissions increased $141,233, accounting for the majority of the increase in cost of sales, net of amortization.

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Investor Relations Contacts:

Joel Leetzow Sandra Fawcett (formerly Weiler)         Andrew Stewart
President and CEO CFO Director, Marketing & Investor Relations