Ms. Cathy Smith reports

INTOUCH INSIGHT LTD. ANNOUNCES Q3 2020 RESULTS WITH OVER $500,000 IN NET INCOME

Intouch Insight Ltd. has released its operating and financial results for the quarter ended Sept. 30, 2020.

In addition to $510,044 in net income, Intouch had a company-defined adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $760,897, the largest in its history. These figures compare with $136,566 and $397,789 from 2019, respectively. Revenue from Q3 2020 was $2,965,928, compared with $4,908,852 in Q3 2019, due to the impacts of the COVID-19 pandemic. Income from operating activities increased 329 per cent to $485,218 in Q3 2020, compared with $147,575 in Q3 2019. Gross margin increased to 52.5 per cent in Q3 2020 from 51.0 per cent the prior year due to the higher concentration of high-margin software sales in the quarter.

"I am incredibly proud of the results and how the team at Intouch has met the challenge 2020 has thrust upon the world. Given our performance and our technology strength, including the LiaCX SaaS platform, Intouch is in a unique position to grow as markets continue to recover. In Q3, the business was able to produce a strong net income while adding significantly to EBITDA, which is now at $1.35-million on a year-to-date basis. This was all achieved while retaining the key employees required to ensure we can look positively towards future growth," said Cameron Watt, president and chief executive officer.

"Measuring customer experience, gathering actionable intelligence around how your customers feel and consistently monitoring operational execution are more important today than ever before. Intouch has the personnel, skills and SaaS tools to help, and we have continued to sign on new customers throughout 2020. Our latest software, including LiaCX, as well as our leading service offerings create a critical feedback loop in implementing required changes and measuring the success of execution and impact on brand reputation," said Mr. Watt.

              CONSOLIDATED STATEMENTS OF OPERATIONS

                                               Q3 2020         Q3 2019        

Revenue                                   $  2,965,928    $  4,908,852 
Cost of services                             1,408,721       2,406,090      
Gross profit                                 1,557,207       2,502,762      
Total operating expenses                     1,071,989       2,355,187      
Income (loss) from operating activities        485,218         147,575        
Other earnings (expense)                        23,146         (11,009)       
Income taxes recovery (expense)                  1,680               -              
Net earnings                                   510,044         136,566

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