TORONTO, May 28, 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 first quarter ended March 31, 2019. 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.
“Revenue for the first quarter of 2019 was as expected, down on a quarter-over-quarter basis and reflected the adoption of a new accounting standard affecting awards show revenue and seasonally lower general customer activity in our advertising division,” said Gary Moss, President and CEO of Yangaroo. “Awards show revenues will be recognized on a straight-line basis going forward and negatively impacted first quarter sales by approximately $100,000. The majority of the normalized EBITDA loss for the quarter is attributable to this change. This is a timing difference only and will reverse over the second and third quarters. The lower advertising sales resulted from lower customer volumes which we believe were experienced across the advertising industry. Based on current indicators we see this softness reversing and, combined with new client signings, we reiterate our prior stated goal of a 15% exit annual run rate growth for 2019.”
Gary Moss further added, “We were very pleased to announce the closing of a new loan facility and early repayment of debentures during the second quarter, which have contributed to a strong cash and working capital position. We expect to deploy our balance sheet strength to help us deliver organic growth as the Company pursues advertising market share in the US, Latin America, and Canada. Finally, we expect to recommence our share buy-back program in late May 2019 and to continue through to the end of the year subject to normal trading blackout restrictions.”
As at May 27, 2019, the Company had a cash balance of approximately $1.9 million.
Working capital of $1.6M, as at March 31, 2019, was negatively impacted by the adoption of IFRS 16 in 2019, which resulted in an additional $0.2 million in current liabilities related to leased office space when compared to previous comparison periods.
Summary of operating results for the first quarter ended and as at March 31, 2019 and 2018:
| $ CDN | First Quarter | ||
| 2019 | 2018 | ||
| Revenues | 1,633,154 | 1,949,090 | |
| EBITDA (loss) | (277,352 | ) | 131,066 |
| Normalized EBITDA (loss) | (140,364 | ) | 179,566 |
| Net Income (loss) | (377,110 | ) | 84,971 |
| Basic EPS | (0.01 | ) | 0.00 |
| Diluted EPS | (0.01 | ) | 0.00 |
| Working Capital | 1,636,766 | 2,188,059 | |
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.