 TOP IDEAS: Sales and earnings continue to build at Quorum Information
Technologies Inc. (TSXV: QIS). Growth investors should start taking notice.
Read the 2014 second quarter
Management Discussions & Analysis (MD &A) for Quorum Information
Technologies Inc. (TSXV: QIS- $0.23) and the numbers tell the story. A story
that is good for shareholders.
Quorum Information Technologies automates
integrates and streamlines every department in an auto dealership with its
advanced Dealership & Customer Relationship Management System (DMS)
software products - XSELLERATOR™. Quorum's software offering goes well beyond
traditional DMS systems because it has integrated customer relationship
management (CRM) tools, measurable processes that can help dealerships generate
more revenue. Of the 20,000 franchised automotive dealerships across North
America there are about 280 (and growing) General Motors, Chrysler Subaru,
Hyundai, KIA, Nissan, NAPA and Bumper to Bumper dealerships that utilize the Company’s software products throughout Canada and USA.
2014 is fast becoming a
milestone year for Quorum’s financial performance. Sales are strong and the
Company is reaching a critical mass of business when each dollar of revenue
growth contributes more and more to it’s profitably. This observable fact we
first noted in our introductory blog post (See: Quorum
Information Technologies delivers value for auto dealerships and small cap
investors) and there has been more evidence since.
For Q2, the Company reported
its sales jumped 23% to $2.4 million ($1.95 million is recurring.) With the
higher revenues, earnings are expanding. Quorum’s EBITDA for the same quarter
increased by 84% to $431,000. To this point we discover that the Company’s
financial strength continues to build. Quorum’s cash holding have increased by
over $438,000 to $1.25 million since the beginning of this year. The Company
has very little debt.
The recent financial results
reconfirm our opinion that Quorum’s represent an immediate investment
opportunity for both small cap growth and value-wise investors. As one of Investorfile’s
Top Ideas we still believe Quorum’s stock should be accumulated up to a price
of $0.40 per share.
As noted, we deem the Company has reached a
critical mass of auto dealerships that use XSELLERATOR™ DMS, leading to
Quorum’s improving operating efficiencies. Therefore, this represents a very
time favourable time to invest in this small cap stock should the sales continue to
grow. Management has said in its most recent MD &A filing that they
expect sales from Quorum’s suite of DMS software products to continue to
grow over the next several years. If so, this will be very rewarding for
shareholders of the Company.
The Company has approximately 40.1 million
shares outstanding.
Quorum Information Technologies website: www.quorumdms.com
Author Ownership Disclosure: TSXV: QIS - Yes
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This article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
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information contained within this article should not be construed as offering
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Investorfile is not engaged in
an investor relations agreement with Quorum Information Technologies Inc. nor
has it received any compensation from Quorum Information Technologies Inc. for
the preparation or distribution of this article.
The author of this article has
acquired and may trade shares of Quorum Information Technologies Inc. through
open market transactions and for investment purposes only. |
