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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 (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.

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