The Quorum Family of Brands

Quorum is a North American company focused on driving dealership’s revenue through developing, marketing, implementing and supporting its portfolio of software and services for automotive dealerships.

Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS.

DealerMine CRM is a sales and service Customer Relationship Management system and set of Business Development Center services that drives revenue.

XSelleratorTM is a Dealership Management System (DMS) that automates, integrates and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction.

Autovance is a modern retailing platform that helps dealerships attract more business through digital retailing, improve in-store profits and closing rates through our desking tool and maximize their efficiency and CSI through our F&I menu solution.

Advantage is a full showroom system for both franchised and independent dealerships and a comprehensive operating system that includes accounting for the independent market.

Why Invest in Quorum

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Quorum is an information technology company that focuses on the automotive retail business.

With innovation at its core, Quorum offers the automotive retail market technology-enabled end-to-end business processes beyond merely integrated software, but systems designed to work from a single set of information that facilitates a seamless workflow and eliminates inefficient processes. The solution set is comprised of a combination of Quorum-owned intellectual property (whether built or acquired) and close partner relationships.

CEO Maury Marks founded Quorum in 1996 and brings over 20 years of leadership and business software solution experience for automotive dealerships to Quorum.

 With 1,027 unique automotive dealership customers across North America at March 31, 2020, Quorum’s growing automotive dealership market penetration can be attributed to Quorum’s focus on customer service, advanced technology, and measured growth both organically and through acquisition.

The acquisition of Autovance in September 2017, DealerMine in October 2018 and Oasis (Advantage) in January 2019 have not only increased Quorum’s scale in the automotive software market but will accelerate Quorum’s strategy to be a full service software solutions provider to automotive dealerships across North America.

Headquartered in Calgary, Alberta, Quorum also has offices in St. John’s Newfoundland and Labrador; London, Ontario; Saint John, New Brunswick; Lethbridge, Alberta; and Washington Township, Michigan.

Quorum trades on the TSX Venture Exchange under the symbol QIS.

If you would like to receive Investor Materials or have any questions, please email us at Investors@QuorumDMS.com.

Investment Essentials

INVESTMENT ESSENTIALS (last updated May 18th, 2020)

VISION

With innovation at its core, Quorum offers the automotive retail market technology-enabled end-to-end business processes beyond merely integrated software, but systems designed to work from a single set of information that facilitates a seamless workflow and eliminates inefficient processes. The solution set is comprised of a combination of Quorum-owned intellectual property (whether built or acquired) and close partner relationships.

INCREASED SCALE IN NORTH AMERICA THROUGH ACQUISITIONS

The acquisition of Autovance in September 2017, DealerMine in October 2018 and Oasis (Advantage) in January 2019 have not only increased Quorum’s scale in the automotive software market but will accelerate Quorum’s strategy to be a full service software solutions provider to automotive dealerships across North America.

GROWTH OPPORTUNITIES

As Quorum moves forward it has never had a more exciting set of growth opportunities. These opportunities include growing the core XSellerator DMS business, cross-selling products and services to our DMS customers, growing acquired assets, and continuing to assess other strategic acquisitions. DealerMine, Autovance and Advantage are high-growth, cloud-based Software as a Service (“SaaS”) businesses that can show immediate leverage in that they do not require OEM integration and require significantly less training and support to transition dealerships to their solutions.

CUSTOMER BASE HAS DOUBLED

Quorum has more than doubled its automotive dealership customer base with 1,027 unique automotive dealership customers across North America at March 31, 2020, compared to 971 customers at March 31, 2019.

SaaS REVENUE

Quorum’s focus on higher margin recurring revenues is reflected in its SaaS based revenue stream which was 70% of total revenue in Q1 2020, or $5.9 million.

BDC REVENUE

As part of the Dealermine acquisition Quorum acquired a Business Development Centre (“BDC”) or call center.  BDC revenue was $2.1 million in Q1 2020. BDC revenue was 25% of total revenue in Q1 2020.

ARRPU (Average Recurring Revenue per Unit /Customer)

Quorum will continue to grow monthly ARRPU by offering integrated, end-to-end business process software solutions to its customers, thereby increasing the total monthly spend per customer on Quorum products and services. Quorum’s Q1 2020 SaaS revenue based monthly ARRPU was $1,922 per customer.

GROSS MARGIN and Adjusted EBITDA EXPANSION

Quorum continues to focus on expanding both its gross margin and Adjusted EBITDA by optimizing its administration costs, marketing spend, contractual arrangements, services, and leveraging Quorum’s government Accelerated Growth Services (AGS) certification. Q1 2020 Adjusted EBITDA as a percentage of revenue was 10%. Overall gross revenue margin in Q1 2020 was 45%, while the SaaS revenue stream gross margin was 66%.

INCREASED MARKET PENETRATION

Quorum’s growing market penetration can be attributed to Quorum’s focus on customer service, advanced technology and measured growth, both organic and through acquisition.

ORGANIC and ACQUISITION GROWTH

Quorum has delivered historic organic growth across all its divisions and will continue to evaluate possible future acquisition opportunities.

DRIVING DEALERSHIP CUSTOMER SATISFACTION and DEALER ROI

Driving additional revenue into its customer dealerships is a key focus for Quorum, reflected in Quorum’s suite of dealership products and services. Quorum offers a visible ROI to its customers as its solutions typically drive revenue into dealerships.

OEM INTEGRATION

Quorum continues to expand its Total Addressable Market (TAM) in both Canada and the US.  In January 2019 XSellerator completed certification with Volkswagen (VW) and Audi.  The XSellerator division has completed integration with OEM’s representing 18 different brands in Canada and 12 different brands in the US.

INVESTOR ALIGNMENT

Quorum boasts a strong ownership dynamic that is aligned with investor interests as over 41% of Quorum shares are owned by Quorum’s customers (dealers), management, and board members.

Leadership Team

Executive Management

Maury Marks
President & CEO
Throughout his career, Maury Marks has established himself as a visionary in the automotive retail technology industry. As one of the original founders, and as the President and CEO of Quorum Information Technologies, Maury has created a team that is committed to building and providing the best dealership management system in the industry. Growing up in Alberta, Canada, Maury worked in his family’s GM dealership. During this time, he was exposed to the facets of dealership management and the challenges dealers face from both a business and technology standpoint. In 1996, Maury’s family approached him in need of a new DMS. After evaluating and realizing that the DMS industry was largely stagnated, Maury and his partners conceived the idea of Quorum. He focused the company on the development of its flagship XSellerator DMS software. Maury earned a Bachelor of Management (with Distinction) from the University of Lethbridge in Alberta, Canada in 1988. He then received his Chartered Accountant’s designation couple of years later after articling with Deloitte and Touche in Calgary. Maury started in the accounting group and eventually moved to the firm’s technology practice where he had the experience of helping various corporations select and implement technology and systems that best fit their business needs. In 1992, Maury made the decision to leave Deloitte and Touche to begin his own practice of technology consulting. While Maury is not on business trips, he can be found in Quorum’s headquarters in Calgary, Alberta.
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Marilyn Bown
Chief Financial Officer
Having a natural flair in numbers, Marilyn Bown keeps our books in the black. In 2008, she was recruited from Belanger Clarke Follett McGettigan to fill the Corporate Accountant position. Marilyn progressively increased her responsibilities and contribution to Quorum, which earned her a promotion as Controller. Marilyn is Quorum’s Chief Financial Office and leads the Corporate department at Quorum. She overlooks all aspects of accounting, financial reporting, procurement and government relations. Five years prior to joining Quorum, Marilyn received her Bachelor of Commerce (Co-operative) degree from Memorial University of Newfoundland and Labrador in Canada. She then received her Certified General Accountant Designation in 2008.Marilyn works out of Quorum’s largest office in St. John’s, Newfoundland.
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Mark Allen
Senior Vice President - Business Development
Owing to his deep business, technical and automotive industry experience, Mark earned himself the reputation as a visionary leader in the automotive retail technologies space. Mark’s very first priority when he joined Quorum in 2006 was to lead the launch of the General Motors Integration Dealer Management System (IDMS) program. This helped build a good rapport between GM and the company, transforming Quorum’s core business model to deliver services required under the contract. After the success he had with GM, Mark moved on to lead a new department chartered with marketing, strategic planning and enterprise account management. His present position of Vice President - Sales, Marketing and Services, and Director, Quorum Information Technologies (US), Inc. is the culmination of progressively added leadership responsibility in the years since joining Quorum. Mark leads all sales (client acquisition and organic growth), marketing and strategic partnerships, in addition to the Services Delivery team (implementations and training), for the company. Mark holds a BSBA degree, with an emphasis in information technology and finance, and an MBA in Marketing - both attained with high honors from prestigious universities. He has extensive leadership background with multi-national organizations like General Motors and Electronic Data Systems (EDS). In his senior management roles with EDS Automotive Retail Group (ARG), he was responsible for overall management and performance of ARG’s product and service portfolio, as well as strategic planning, technology leadership and business development. Mark’s entrepreneurial expertise has found him as Founder, President and CEO of Playing Field Inc., an innovative start-up that established a new market model for application integration within automotive retail, as well as previous endeavors such as ownership of an independent coffee shop and a small business custom application development boutique. Mark is based in Quorum’s Washington Township, Michigan office.
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Board of Directors

Scot Eisenfelder
Chairman of the Board of Directors
President & General Manager - Amplify
Scot Eisenfelder received a Bachelor of Arts Degree from Princeton University in 1986 and a Masters of Business Administration from the Wharton School, University of Pennsylvania in 1991. Currently he is the President & General Manager of Amplify and previously was CEO & Executive Chairman of Affinitiv Inc. Prior to that, his resume includes being Vice President Strategy for AutoNation, Group Vice President of JM Family Enterprises (responsible for the dealer software business) and he was Senior Vice President and an officer at Reynolds & Reynolds, responsible for the U.S. business from 2005 to 2007. Scot Eisenfelder ran J.D. Power’s auto retail research and consulting practice. Previously, he was a partner in the global auto practice where he specialized in sales, marketing and distribution issues. Scot Eisenfelder has focused on helping automotive companies and dealer groups improve performance for almost two decades.
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Joe Campbell
Director
President & Chief Executive Officer - Tricor Automotive Group Inc.
Mr. Campbell is the President and CEO of the Tricor Automotive Group Inc., which is Canada’s largest automotive dealer-owned financial services company with dealerships that represent all OEM’s across Canada. Mr. Campbell is a University of Michigan Business School graduate with a major in Accounting and Finance. He started his automotive related career with Pat Ryan Associates, a division of AON, and after 17 years with Pat Ryan joined Tricor as President upon its formation in 1998.
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Jon Hook
Director
Senior Analyst - Voss Capital, LLC
Mr. Hook has over seven years of equity investment experience, first working at the Teacher Retirement System of Texas (TRS) for five years covering Software & Services and at Voss Capital LLC for the last two and a half years. Prior to TRS, he worked for over three years at EMR software provider Epic Systems. Mr. Hook obtained his MBA from Rice University and holds the Chartered Financial Analyst (CFA) designation.
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Maury Marks
Director
President & Chief Executive Officer - Quorum Information Technologies Inc.
Throughout his career, Maury Marks has established himself as a visionary in the automotive retail technology industry. As one of the original founders, and as the President and CEO of Quorum Information Technologies, Maury has created a company that is committed to building and providing the best dealership management system in the world. Maury has been around automotive retailing literally all of his life. Growing up in rural Alberta, Canada, Maury worked in his family’s GM dealership. That exposure to all facets of dealership management and to the challenges dealers face from both a business and technology standpoint, has given Maury a firm basis for founding and leading Quorum. In 1988, Maury earned a Bachelor of Management (with Distinction) from the University of Lethbridge in Alberta, Canada. In 1991, he received his Chartered Accountant’s designation after articling with Deloitte and Touche in Calgary. At Deloitte and Touche, Maury first worked in the accounting practice, Later, he moved to the firm’s technology consulting practice where he worked with many different companies to select and implement technology and systems to support their business needs. He left Deloitte and Touche in 1992 and began his own practice of technology consulting for small businesses. It was during this time that his family turned to him to find a new dealer management system for their dealership. Having thoroughly evaluated the market and its offerings, Maury concluded that the industry had largely stagnated and the idea for forming Quorum was conceived. Maury and his partners founded Quorum in 1996. Since that time, Maury has focused the company on the development of its flagship XSᴇʟʟᴇʀᴀᴛᴏʀ™ DMS software.
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Neil McDonnell
Director
Chair of Photon Control Inc. (TSX:PHO), Chair of Nanotech Security Corp., Director of Redline Communications and Chair of BasicGov Systems
Mr. McDonnell is a recognized leader in the Canadian technology space and is currently Chair of Photon Control Inc. (TSX:PHO), Chair of Nanotech Security Corp., Director of Redline Communications and Chair of BasicGov Systems. Mr. McDonnell has also served in numerous previous governance and senior executive roles including past Chair of Agreement Express Inc., Director of Aprio Inc., Chair of EDP Software Inc, Director of Espial Group Inc., Executive Chair of ResponseTek Networks Corp., Director of Symbility Solutions Inc., Chair of QHR Technologies Inc., CEO of Wurldtech Security Technologies Inc., Director of British Columbia Lottery Corporation, Board Advisor of ICBC, and Chair and CEO of TeraSpan Networks Inc. Mr. McDonnell holds a Master of Business Administration from the University of British Columbia and a Bachelor of Commerce from the University of Toronto.
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William Nurthen
Director
Chief Financial Officer - Endeavor Business Media
Mr. William Nurthen brings more than twenty years of experience which includes Chief Financial Officer roles at two publicly traded companies and financial leadership roles across multiple sectors. Mr. Nurthen is currently the Chief Financial Officer of Endeavor Business Media. Prior to that, he served as Chief Financial Officer of ARI Network Services, Inc., a software company focused on independent dealers. He has also held Chief Financial Officer roles in investment banking, biotechnology, and technology services. Mr. Nurthen holds a Master of Business Administration from the Kellogg School of Management at Northwestern University and a Bachelor of Business Administration from the University of Notre Dame.
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Greg Pollard
Director
Chair, Audit and Finance committee, Balancing Pool Board of Directors
Mr. Greg Pollard brings more than thirty years of experience in multiple sectors. Mr. Pollard is a currently serving as the Chair of the Audit and Finance committee of the Balancing Pool’s Board of Directors and is a Director for a number of legal entities within the Walton Group of Companies. Mr. Pollard has served in many various leadership roles including leading Ernst & Young LLP’s Transaction Advisory Services practice in Calgary from 2008 to 2012 following his return from Ernst & Young’s Houston, Texas office where he served as Gulf Coast Transaction Advisory Services practice and market leader, as well as oil and gas industry sector leader in the Americas. He is a Chartered Accountant (1979), a Chartered Insolvency and Restructuring Professional (CAIRP – 1992) (ret.), and has his ICD.D (2012) from the Institute of Corporate Directors.
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News Releases

Financial Statements

2020

Q1 2020
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2015
Q2 2015
Q3 2015
Q4 2015

Presentations & Events

Presentations

Fact Sheet

Upcoming Events

There are currently no upcoming scheduled events.

Past Events

  • Tuesday, May 19th, 2020: Q1 2020 Financial Results Conference Call

Analyst Coverage

Representative list of analyst coverage

Firm: Analyst:
Beacon Securities Limited Gabriel Leung
PI Financial David Kwan
Cormark Securities Inc. Gavin Fairweather

Key Corporate Contacts

Maury Marks

President & Chief Executive Officer

Marilyn Bown

Chief Financial Officer
877.770.0036 ext. 386
BownM@QuorumDMS.com

Bankers

HSBC Bank Canada
Calgary, Alberta

Stock Exchange Listing

TSX Venture Exchange
Trading Symbol: QIS

Quorum’s Corporate Office

7500 Macleod Trail SE, Suite 200
Calgary, AB
T2H 0L9

Phone: 403.777.0036
Fax: 403.777.0039
Toll Free: 1.877.770.0036

E-mail: Investors@QuorumDMS.com
Website: www.QuorumDMS.com

Scot Eisenfelder

Chairman of the Board

Corporate Counsel

McLeod Law LLP
Calgary, Alberta

Auditors

BDO Canada LLP

Registrar and Transfer Agent

Computershare Trust Company of Canada
Calgary, Alberta

QUORUM INFORMATION SYSTEMS INC. and QUORUM INFORMATION TECHNOLOGIES (US) INC. are wholly-owned subsidiaries of Quorum Information Technologies Inc.