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TORONTO, CANADA - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media management company, announced today its results for the third quarter ending September 30th, 2013.
The third quarter growth was 11% higher than the same period in 2012, with revenues of $836,155. Revenues for the first 9 months of the year were $2.4 million, up 26% over same period in 2012.
Quarter over quarter revenue growth was flat, which can be attributed to seasonality of the business, as July and August are historically amongst the slowest months of the year. Normalized adjusted EBITDA for the quarter of $(62,250) was also largely unchanged from the previous quarter.
Growth continues in both the Advertising and Entertainment sectors of the business. The year on year growth, coupled with sequential quarterly growth, is expected to continue for the remainder of 2013 and into 2014.
Highlights:
-
- Q3 revenue growth: 11% year over year.
- Nine month revenue growth up 26%.
- Normalized cash burn flat quarter over quarter.
- Adjusted EBITDA improved 15% year over year.
- Advertising revenue up 18% over previous year.
- Entertainment revenue up 8% over previous year.
- Loss from operations down 20% over previous year.
- U.S. revenue from all sources up 23% over previous year.
- Gain on extinguishment of debt in the quarter of $1.67M.
During the third quarter, the Company completed the brokered private placement and share consolidation, of which details were previously disclosed and included in the quarterly financial disclosure documents. Early in October, the shares for debt transaction was completed, as well as the amendment of the debenture terms in 2 of the 3 classes of debentures.
"Q3 was a transformative quarter for YANGAROO. The financial restructuring was completed with all elements of the plan over delivering. We raised more money than anticipated, with more debt than expected, converting to equity," said Gary Moss, YANGAROO's President and CEO, "We now have the financial structure and resources to execute on our plan for quarterly growth for the balance of this year and next year. We have already hired very impressive executives in our Advertising division and will grow this business under Sarah Foss's leadership and direction. The minimal, normalized cash burn, is evidence of continued effective cost control."
Summary of operating results for the periods ended September 30, 2013:
------------------------------------------------------------
|$CDN |Nine Months |Third Quarter |
|----------------------------------------------------------|
| |2013 |2012 |2013 |2012 |
|----------------------------------------------------------|
| Revenue |2,435,009|1,928,934 |836,155 |752,760 |
|----------------------------------------------------------|
| Adjusted EBITDA|(529,198)|(698,774) |(148,898)|(175,521)|
|----------------------------------------------------------|
| Net gain (loss)|451,209 |(1,834,473)|1,294,281|(453,973)|
|for the period | | | | |
|----------------------------------------------------------|
| Gain (loss) per|0.03 |(0.14) |0.08 |(0.03) |
|share (basic & | | | | |
|diluted) | | | | |
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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 statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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