Positive annual cash flows from operations for the first time

CALGARY, Alberta, Oct. 24, 2017 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (TSXV:CBX), a North American network-as-a-service e-invoicing solutions provider, today announces its three months ended July 31, 2017 (“Q4 F2017”) and year ended July 31, 2017 (“F2017”) Management’s Discussion and Analysis and Consolidated Financial Statements. 

“Fiscal 2017 marks a historic and significant inflection point for the company as the transformative activities taken in the previous years have propelled Cortex to its first ever positive net cash provided by operating activities” 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 assured to sustain and build on results from this year and achieve continued growth”.

“Cortex continues to deliver improved results for the year and for the latest quarter” said Henry Pham, Interim CFO of Cortex Business Solutions.  “With a shored up balance sheet, extinguishment of the rebate provision and no debt, the pivot towards sustained profitability is well underway.  Had it not been for the recognition of an onerous contract pertaining to the Company’s previous head office lease in Calgary that expires in January 2018, Cortex would have reported positive Q4 2017 net income; building on similar results from Q3 2017.  We will look to build on the results of F2017 and assure to our existing and prospective customers alike, that Cortex is here to stay and to help deliver value from the Cortex brand.”

F2017 Financial Highlights: 

• Position cash flow from operating activities increased 144% to $0.5 million from negative cash flows from operating activities of $(1.2) million
• Overall revenue increased 13% to $11.1 million from $9.8 million
• Access and usage fees increased 6% to $10.0 million from $9.4 million
• Gross profit improved 80% to $7.8 million from $4.4 million
• Net loss improved 85% to $(0.4) million from $(2.7) million
• Adjusted EBITDA⁽¹⁾  increased 290% to $0.6 million from $(0.3) million

Q4 F2017 Financial Highlights (as compared to Q4 2016):

• Position cash flow from operating activities increased 218% to $0.5 million from negative cash flows from operating activities of $(0.4) million.
• Overall revenue increased 31% to $2.9 million from $2.2 million
• Access and usage fees increased 22% to $2.6 million from $2.2 million
• Gross profit improved 141% to $2.2 million from $0.9 million
• Net loss improved 79% to $(0.1) million from net loss of $(0.7) million
• Adjusted EBITDA⁽¹⁾  increased 233% to $0.2 million from $(0.1) million             

Cash Position

The overall cash position of Cortex improved 11% to $6.2 million at July 31, 2017 from $5.6 million driven predominantly from strong net cash provided by operating activities. 

Cortex 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 November 1, 2017

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 and Sports & Entertainment industries, with a focused expansion into additional verticals.

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

Investor Relations Contacts: 

Cortex Business Solutions Inc.
Consolidated Statements of Financial Position
(Prepared in Canadian dollars)

Cortex Business Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
For the years ended July 31, 2017 and 2016
(Prepared in Canadian dollars) 

Cortex Business Solutions Inc.
Consolidated Statements of Changes in Shareholders' Equity
(Prepared in Canadian dollars) 

Cortex Business Solutions Inc.
Consolidated Statements of Cash Flows
For the years ended July 31, 2017 and 2016
(Prepared in Canadian dollars)