2016 Restated resultsFull Year Highlights
Revenue of $56.4 million, an increase of $1.1 million or 2% over 2015 (restated); net loss of $0.5 million, diluted loss per share of $0.04
EBITDA decreased by 42% or $4.5 million yearoveryear to $6.4 million. Onetime, nonrecurring items of $5.9 million (excludes higher than normal professional services fees and the impact of the refund reserve in the year), were incurred relative to $3.7 million in 2015. EBITDA of $12.3 million excluding onetime items and adjustments compared to $14.6 million in 2015, a decrease of $2.4million or 16%)
The nonrecurring items included $0.9 million related to the process of evaluating unsolicited offers to purchase the Company in Q1 2016, $4.2 million related to legal, accounting and other professional fees incurred related to the review of subscription cancellations, installation personnel worker classification, employee settlements, provisions and other costs due to the potential misclassification of installation personnel, and $0.8 million in writedowns of obsolete VideoRelay camera equipment. These costs totalled $5.9 million for the year or $0.51 per share
Gross new subscriber additions were 17,276 for the year, about 24% lower than 2015 reflecting a shift in focus in geographic origination and underwriting to improve the overall quality and lifetime value of new subscribers
Total subscribers decreased by 5.5% for 2016 from 143,083 to 136,702 with net subscriber growth unfavourably impacted by approximately 6,048 subscribers which is comprised of approximately 3,436 subscribers who should have been cancelled in prior periods and approximately 2,612 subscribers who cancelled in Q4 as a result of updated cancellations practices whose cancellations historically would have been incurred in a subsequent period
Notwithstanding decline in overall subscribers recurring monthly revenue totaled $4.5 million, down only 1% over 2015, driven by strong average revenue per new user since the launch of new products and cancellation of lower average revenue per subscriber accounts
Q4 Highlights
Revenue of $14 million including an increase in revenue from Canadian operations of 1% and a decrease in revenue from US operations of 9% from Q4 2015
At October 31, 2016 the Company had provisions on the balance sheet totaling $6.1 million related to subscriber refunds, potential consumer protection penalties and liabilities related to the potential misclassification of installation personnel
EBITDA of $1.4 million (excluding onetime items), down $2.1 million from the comparable period in 2015
Average revenue per user for existing subscribers was $32.56 for Q4, a 3% increase (2.5% excluding the effect of foreign exchange) over 2015
Average revenue per user for new subscribers was $37.40, an increase of 3% (or 2% excluding the effect of foreign exchange) over 2015