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.

Autovance is a sales desking system that increases sales department gross margins and improves customer satisfaction for dealerships.


XSᴇʟʟᴇʀᴀᴛᴏʀ^TM 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.	Advantage is a full showroom system for both franchised and independent dealerships and a comprehensive operating system that includes accounting for the independent market.	QSolutions delivers industry-leading automotive software solutions and products that deeply integrate with XSᴇʟʟᴇʀᴀᴛᴏʀ.

Why Invest in Quorum

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Quorum is a North American company focused on developing, marketing, implementing and supporting its portfolio of software and service solutions for automotive dealerships. 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 1,020 unique automotive dealership customers across North America at September 30, 2019, 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 CRM 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.

Quorum’s products and services have been organized into four key divisions:

XSᴇʟʟᴇʀᴀᴛᴏʀTM	DEALERMINE	AUTOVANCE	ADVANTAGE
A Dealership Management System (DMS) that automates, integrates and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction.	A sales and service Customer Relationship Management system and set of Business Development Center services that drives revenue into the critical sales and service departments in a dealership.	A sales desking system that increases sales department gross margins and improves customer satisfaction for dealerships.	A full showroom system for both franchised and independent dealerships and a comprehensive operating system that includes accounting for the independent market.
QUORUM DEVELOPED DMS	ACQUIRED: October 31, 2018	ACQUIRED: September 1, 2017	ACQUIRED: January 2, 2019
TARGET MARKET: Franchised Rooftops (Quorum OEM Integration Complete)	TARGET MARKET: Franchised Rooftops	TARGET MARKET: Franchised Rooftops	TARGET MARKET: Independent Rooftops

Headquartered in Calgary, Alberta, Quorum also has offices in St. John’s Newfoundland and Labrador; London, Ontario; Saint John, New Brunswick; Lethbridge, Alberta; and in 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 November 14, 2019)

VISION

Quorum’s vision is to build a single, integrated, end-to-end business process solution for North American automotive dealerships that covers all of their business-critical processes.

To deliver on this vision, Quorum has initiated a build, resell and acquire strategy, which combines continued development of Quorum’s flagship XSᴇʟʟᴇʀᴀᴛᴏʀ Dealer Management System (“DMS”) product, partnering with complementary third-party service providers to re-sell value-added services to Quorum’s existing customer base, and acquiring strategic companies that provide innovative solutions that augment Quorum’s existing suite of product offerings.

INCREASED SCALE IN NORTH AMERICA THROUGH ACQUISITIONS

GROWTH OPPORTUNITIES

As Quorum moves forward it has never had a more exciting set of growth opportunities. These opportunities include growing the core XSᴇʟʟᴇʀᴀᴛᴏʀ DMS business, cross-selling products and services to our DMS customers, growing acquired assets, and continuing to assess other strategic acquisitions. DealerMine CRM, 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 1,020 unique automotive dealership customers across North America at September 30, 2019, compared to 466 customers at September 30, 2018.

SaaS REVENUE

Quorum’s focus on higher margin recurring revenues is reflected in its SaaS based revenue stream which was 65% of total revenue in Q3 2019, or $5.55 million. This equates to a yearly run rate of $22.2 million.

BDC REVENUE

As part of the Dealermine acquisition Quorum acquired a Business Development Centre (“BDC”) or call center. BDC revenue was $2.02 million in Q3 2019, or a yearly run rate of $8.1 million. BDC revenue was 24% of total revenue in Q3 2019.

CONTRACTED REVENUE

Quorum’s contracted revenue is calculated by combining SaaS and BDC revenue and based on this, 89% of Quorum’s revenues are under long-term or evergreen contracts.

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 Q3 2019 SaaS revenue based monthly ARRPU was $1,814 per customer.

GROSS MARGIN and EBITDA EXPANSION

Quorum continues to focus on expanding both its gross margin and EBITDA by optimizing its administration costs, marketing spend, contractual arrangements, services, and leveraging Quorum’s government Accelerated Growth Services (AGS) certification. Q3 2019 EBITDA as a percentage of revenue was 17%. Overall gross revenue margin in Q3 2019 was 49%, while the SaaS revenue stream gross margin before labour was 77%.

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 of 10% 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 XSᴇʟʟᴇʀᴀᴛᴏʀ completed certification with Volkswagen (VW) and Audi. The XSᴇʟʟᴇʀᴀᴛᴏʀ division has completed integration with OEM’s representing 18 different brands in Canada and 12 different brands in the US.

TECHNOLOGY LEADERSHIP

Quorum maintains a leadership position across all divisions with a planned 2019 product development investment of $2.9 million.

INVESTOR ALIGNMENT

Quorum boasts a strong ownership dynamic that is aligned with investor interests as over 45% 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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Board of Directors

Scot Eisenfelder

Chairman of the Board of Directors

CEO & Executive Chairman - Affinitiv Inc.

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 CEO & Executive Chairman of Affinitiv Inc. and previously was Vice President Strategy for AutoNation. Prior to that, his resume includes being 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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Craig Nieboer

Director

Chief Financial Officer - Pipestone Energy Corp

Craig Nieboer, CA CPA has over twenty- five years of experience in senior financial positions with internationally recognized service and exploration and production companies including Amerada Hess, BrazAlta Resources Corp., and CES Energy Solutions. Currently he is the Chief Financial Officer for Pipestone Energy Corp. He also held the position of CFO with Quorum Information Technologies Inc. from 2003 through 2006 where he played a major role in securing the GM IDMS contract.

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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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Robert Quirion

Director

President, DealerMine

After almost 30 years in the Automotive Software industry, I am still excited to come to the office every day to continue innovating our product. I am a hands-on leader involved with every aspect of the business. I believe in taking care of our customers no matter what! I am driven by helping our clients with the tools they need for their business, as well as to ensure that our support, product, people and services are first class and ready to serve. I may not get it right 100% of the time, and when I don’t, I am quick to make things right.

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