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RSI Releases 2011 Financial Statements

Posted on: 02-May-2012 12:00AM

RSI International Systems Inc. ("RSI " or the "Company") (RSY: TSX-V) has released its audited consolidated financial statements for the year ended December 31, 2011 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 PMS 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.

In 2011, RSI continued to add properties from current multi-property chain clients, and added upscale properties in key U.S. markets like Florida, California and New York. The Company has global presence in Europe, Asia, the Caribbean and Africa.

The growth in existing partnerships was complemented by increased new customer acquisition through targeted marketing efforts. In addition, the Company added enhanced reporting products to existing partnerships, providing them deeper insight to their customers. The Company added the capability to deliver guest messaging services to build retention and average cheque size, and are market testing retention program elements to enhance client’s guest relationships and retention efforts. Pursuing deeper product deployments into its existing customer base and increasing marketing efforts to targeted market tiers will continue to be a source of future revenue growth.

In light of the above developments, the Company saw 2011 customer counts increase 12% over 2010. In the latter half of 2011, the Company added key Sales & Marketing, Customer Service and Accounting personnel and increased planning, product and delivery capabilities to leverage the continued recovery in the hospitality sector.

Significant Financial Highlights for 2011

The Company’s recorded revenue for the year ended December 31, 2011 increased by 40% over the previous year ended December 31, 2010 compared to an increase in expenses of only 18% for the same period.

This is a result of RSI being first to embrace a “Web-based” system service model, which delivers strong value to its hotel clients. Added to this, the Company’s subscription (Transactional) pricing makes RSI much easier to switch to.

Significant net income increase in 2011 as compared to 2010.

The increase in net earnings is due mainly to reduction in expense and the better utilization of the Company’s infrastructure and human resources.

EBITDA for the year ended December 31, 2011 increased 439% as compared to EBITDA for the year ended December 31, 2010.

Cash provided by operations during fiscal 2011 increased 116% compared to fiscal 2010.

The Company’s cash-flow increase is due to topline revenue increase combined with only a slight increase in expense and improved AR management practice.

Earnings of 3 cents per share.

Completed the acquisition of Veratta Technologies Inc. in Q2 of 2011.

As an online marketing company, Veratta is a perfect fit in every way with the Company’s philosophy, culture and plans for growth.

Outlook

The fact that the Company (despite several very difficult years for the hospitality industry), had its best sales ever in 2011 and exceeded sales targets in Q1 of 2012, are positive indicators that the Company’s products and superior customer service are resonating as demand rebounds. Key hotel industry metrics are shifting to the positive and the industry appears to be in recovery. The Company’s marketing efforts (particularly online) are achieving 400%+ ROI and are generating sales from qualified prospects. A variety of strategic sales and marketing initiatives will continue to be applied throughout fiscal 2012.

RSI’s early adoption of web-based computing for its data support was prescient as it allows scalability at minimal additional cost. Customers can be added without addition of commensurate onsite support costs as all the product support and much of the training can be done online or by telephone. The addition in 2011 of the Smart Support portal enabling self-service client support has further reduced the requirement for live support, freeing up resources for training and controlling costs, while increasing customer satisfaction.

While RSI’s core PMS product continues to grow sales, the management team is actively enhancing the product’s competitiveness and appeal by adding key elements that create success for the Company’s customers, and therefore demand. The addition of industry-leading e-Marketing tools helps clients with their customer engagement. A leading Sales & Catering module increases the “breadth of offering” of the PMS and enhanced reporting formats, loyalty functionality and social media plug-ins for customers’ websites all add value to the PMS software and increase demand by making the Company’s product a better fit for a larger customer set.

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

OUTSTANDING SHARE DATA

As at April 25, 2012, there were 15,679,627 common shares and 1,452,500 stock options outstanding. About RSI RSI International Systems Inc. is a provider of leading web-based Property Management System software and related marketing and online support products and services to the global hospitality industry. The Company’s products help leading hotels identify, acquire, grow and retain their customers. The Company’s guest-centric, integrated processes provide a unified data view enabling its customers to better leverage online customer acquisition, and better manage and retain guests once acquired.

On behalf of the Board,
Charles Ku, President & CEO

For further information please visit the Company's website at www.WelcomeToRSI.com, or please contact: 

RSI International Systems Inc.
Ron Baldwin
Tel: (604) 914-3721
Email: rbaldwin@welcometorsi.com

Forward-Looking Statements 

This press release contains certain statements contained in the Management’s Discussion and Analysis and elsewhere which constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth above.

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