TORONTO, April 25, 2019 (GLOBE NEWSWIRE) -- YANGAROO Inc. (TSX-V: YOO, OTCBB: YOOIF), (“The Company, or “Yangaroo”) the leading secure digital media management and distribution company, today announced its results for the year and fourth quarter ended December 31, 2018. The full text of the Financial Statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com. Please note that all currency in this press release is denoted in Canadian dollars.
“As anticipated, revenue in the final quarter of 2018 grew over the prior quarter, reflecting the seasonal trends in both segments of our business,” said Gary Moss, President and CEO of YANGAROO. “Notwithstanding the impact of seasonality and general customer activity on a quarter to quarter basis, we remain confident that our prior stated goal of a 15% exit annual run rate growth for 2019 in our Advertising division is achievable. We commenced our share buy-back program in January 2019 and are pleased with the response to date. The program remains in place for the balance of 2019, subject to normal trading blackout restrictions. We expect to lift the current blackout period in the third week of May 2019. To date the Company has bought-back 104,500 shares at an average price of $0.155.”
Gary Moss further added, “the Company’s recent quarterly sales growth, combined with its ability to keep costs low, have contributed to a strengthened balance sheet. Working capital and cash balances at year-end were significantly improved from the prior-quarter and prior-year, which can be expected to continue for the foreseeable future, as the Company looks to deploy its improved balance sheet strength to grow the business.”
Revenue for 2018 was $7.5M or 2% lower than 2017 primarily attributed to a loss of business from advertising clients partially off-set by increased music and entertainment sales. Fourth quarter revenue was $2.0M or 5% higher than the same period in 2017 and primarily attributed to increased music and entertainment sales. EBITDA for 2018 and the fourth quarter of 2018 increased by $0.4M or 159% and $0.3M or 195%, respectively, from the same periods in 2017, and was primarily attributed to lower salary and technical development expenses and higher foreign exchange gains. Normalized EBITDA and Net Income for 2018 were $0.8M and $0.5M, respectively.
Additionally the Company’s Working Capital position as at December 31, 2018 was $2.7M, an increase of $0.8M or 39% from the same period in the previous year, resulting primarily from a higher cash position and lower trade and contractual severance payables.
Summary of operating results for the years, fourth quarters ended, and as at December 31:
| $ CDN | Year | Fourth Quarter | ||||||
| 2018 | 2017 | 2018 | 2017 | |||||
| Revenues | 7,487,784 | 7,655,166 | 2,005,479 | 1,909,974 | ||||
| EBITDA | 687,487 | 265,785 | 405,409 | 137,508 | ||||
| Normalized EBITDA | 771,494 | 952,271 | 339,262 | 150,879 | ||||
| Net Income | 513,055 | 77,228 | 362,066 | 88,493 | ||||
| Basic EPS | $0.01 | $0.00 | $0.01 | $0.00 | ||||
| Diluted EPS | $0.01 | $0.00 | $0.01 | $0.00 | ||||
| Working Capital | 2,724,443 | 1,960,841 | 2,724,443 | 1,960,841 | ||||
As at April 23, 2019, the Company had a cash balance of $1.8M.
About YANGAROO:
YANGAROO is a company dedicated to digital media management. YANGAROO’s patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud-based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America’s major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF. For further information, please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.