TORONTO, ONTARIO--(Marketwired - Nov. 24, 2014) - YANGAROO Inc. (TSX VENTURE:YOO)(OTCBB:YOOIF), the industry's leading secure digital media distribution company, today announced results for the third quarter ended September 30, 2014. Revenue totaling $1,005,326 was 20% higher than the same period in 2013 and 18% higher than the previous quarter. The Company saw significant growth from all divisions led by new business generated by the YANGAROO Advertising Division. Music Video deliveries were up 18% year over year, award show revenue was up 51% and Advertising revenue was up 25% with a record breaking September.
Overall revenue for the nine months ended September 30, 2014 was $2,757,633 up 13% over the same period in 2013. Operating expenses for the 3rd quarter of 2014 have increased by 5% over the previous quarter and 53% over the same period of previous year due to the addition of sales and customer service people primarily in the U.S. to support the increased number of Advertising customers and activity.
More recently, both the Advertising and Entertainment Divisions have produced record performances during September and October. While the investment in infrastructure has now stabilized, sales have begun to ramp. Highlights for the 2 months include:
- September set a record for monthly advertising billings of $145k. This was surpassed in October with monthly sales of $203k.
- Contributing to October's revenue, was the largest single advertising order that the company has processed to date, with deliveries to over 12,000 destinations. The order was processed flawlessly, well within required service levels.
- The company has signed over 80 new advertising customers so far this year with no sign of the momentum slowing.
- Closed significant deals with Speedmedia and Media 360, and both will have an immediate impact on revenue growth.
- The Entertainment Division set several weekly records for music video delivery and closed caption revenue.
The current infrastructure and resources are fully capable of handling significant revenue growth and we do not expect any further material increases in fixed costs in the near term. We expect that the fourth quarter will be a record revenue quarter. A preliminary review of 2015 indicates that advertising revenues should be approximately double the fourth quarter annualized sales, and the Entertainment Division will continue its steady growth in 2015.
"This was an important quarter for us as we have resumed our revenue growth over what was a disappointing second quarter result," said Gary Moss, President and CEO, YANGAROO Inc. "All sectors performed well, with advertising really beginning to get the traction we have been looking for. I expect this growth to continue through the fourth quarter and to continue to grow and accelerate into 2015."
Summary of operating results for the periods ended September 30th:
| $CDN |
Nine Months |
|
Third Quarter |
|
| |
2014 |
|
2013 |
|
2014 |
|
2013 |
|
| Revenue |
2,757,633 |
|
2,435,009 |
|
1,005,326 |
|
836,155 |
|
| Adjusted EBITDA (loss) |
(1,497,100 |
) |
(529,198 |
) |
(472,004 |
) |
(148,898 |
) |
| Adjusted normalized EBITDA (loss) |
(1,161,733 |
) |
(338,801 |
) |
(406,772 |
) |
(62,250 |
) |
| Net gain (loss) for the period |
(1,796,085 |
) |
451,209 |
|
(497,885 |
) |
1,294,281 |
|
| Gain (loss) per share (basic & diluted) |
(0.04 |
) |
0.03 |
|
(0.01 |
) |
0.08 |
|
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
The Company also announces a grant of stock options (the "Options") to acquire shares of the Company in accordance with the terms and conditions of the Company's Stock Option Plan. Employees were granted a total of 5,000 options as incentive compensation. The Options are exercisable for a period of five years from the date of grant at a price of $0.12 per share. Following 10% of the Options vesting on the date of grant, the remaining 90% will vest as to a third on each 6 month anniversary following the date of grant. This grant of options will result in a total of 3,886,298 options outstanding.
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.
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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.