TORONTO, Nov. 27, 2018 (GLOBE NEWSWIRE) -- YANGAROO Inc. (TSX-V: YOO, OTCBB: YOOIF), the leading secure digital media management and distribution company, today announced its results for the third quarter ended September 30, 2018.
Revenue for Q3 was $1,735,291, 12% lower than the same period in 2017 and 3% lower than Q2 2018, with net income of $84,846 and normalized EBITDA of $204,301. Revenue for the first 9 months of 2018 was $5,482,305, 5% lower than the first 9 months of 2017, with net income of $150,989 and normalized EBITDA of $432,232. The decreases from the prior year, both quarterly and year-to-date, were due to reduced campaign spending by clients and in some cases loss of business by advertising clients.
Advertising revenue of $1,036,861 in Q3 has dropped 19% over the same period in 2017 and increased 1% over the previous quarter. The year-to-date revenue for the first 9 months was $3,291,408, which has dropped 7% over the same period in 2017, for reasons discussed above. The slight increase from the prior period was due to sales starting to rise in the quarter primarily due to seasonal increases in order flow.
Entertainment Division’s Q3 revenue was $698,430, up 0.5% over 2017 and down 10% over the previous quarter. The revenue for the first 9 months of 2018 was $2,190,897, 1% lower than the same period in 2017. The increase from Q3 2017 was mainly due to increase of licensing revenue and music audio delivery revenue; net of a decrease in the awards management revenue as a result of the change in revenue recognition standards in the current period. The decrease in revenue from Q2 2018 was mainly due to seasonal changes in the volume of video deliveries and timing of revenue recognition from individual awards shows. This decrease was net of an increase in membership subscription fees. The slight decrease of revenue for the first 9 months of 2018 was mainly a result of a decline in the volume of membership subscription and music video deliveries, offset by increases in music audio delivery and licensing revenue.
“As stated last quarter, despite lower revenue year to date, business development efforts are progressing well,” said Gary Moss, President & CEO of YANGAROO. “I am pleased to report that the Company expects that new customers signed in the second half of this year and who are coming on-line in the fourth quarter, will contribute annual run-rate revenue growth in the Advertising division, of at least 15% in 2019. The Company also expects Advertising division revenue to increase sequentially in Q4 from Q3 due to the seasonal strengthening of order flow and business from new customers. Business development efforts continue aggressively, and we anticipate adding to this new business over the coming months. The Company continues to carefully control costs in line with revenue.”
Total operating expense was $1,600,203 for the quarter ended September 30, 2018, 23% lower than the previous year and 13% lower than the previous quarter. The year-to-date operating expenses was $5,347,539, 4% lower than the same period in 2017. The decreases for all the periods were primarily due to one-time restructuring costs incurred in Q3 2017 and the adjustment to the bonus accrual in Q3 2018. The decreases were offset by higher value of stock options granted and salary adjustments in the current year. The Company has retained a net income of $84,846 in the current quarter, compared to a net loss of $215,711 in the same quarter of last year; and retained a net income of $150,989 in the first 9 months of 2018, compared to a net loss of $11,265 in the same period of last year. Excluding the impact of non-cash and non-operating costs, the normalized EBITDA was $204,301 in Q3 2018 and $432,232 for the first 9 months of 2018.
Summary of operating results for the periods ended September 30th:
| $CDN | Nine Months | Third Quarter | ||||
| 2018 | 2017 | 2018 | 2017 | |||
| Revenue | 5,482,305 | 5,745,192 | 1,735,291 | 1,978,395 | ||
| EBITDA (loss) | 282,078 | 128,277 | 125,979 | (164,077 | ) | |
| Normalized EBITDA | 432,232 | 801,392 | 204,301 | 378,927 | ||
| Net Income (loss) for the period | 150,989 | (11,265 | ) | 84,846 | (215,711 | ) |
| Basic income (loss) per share | 0.00 | (0.00 | ) | 0.00 | (0.00 | ) |
| Diluted income (loss) per share | 0.00 | (0.00 | ) | 0.00 | (0.00 | ) |
Please note that all currency in this press release is denoted in Canadian dollars.
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
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.