VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/29/11 -- VRX Worldwide (TSX VENTURE: VRW) -
-- Non-cash impairment provision of $265,158 was recorded
-- Pre-provision, profit trend continues with 11th profitable quarter
achieved
-- MediaValet showcased at Microsoft's 2011 Worldwide Partner Conference in
LA
-- $250,000 convertible debenture announced to continue investment in
cloud-based DAM
VRX Worldwide Inc., a leading provider of content production, distribution, licensing and digital asset management (DAM) services, is pleased to report its financial results for the six months ended June 30, 2011.
Summary of Quarterly Results (Post-Provision)(Unaudited)
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2011 Q2 2011 Q1 2010 Q4 2010 Q3 2010 Q2
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Total revenue $ 850,559 $ 907,477 $ 917,190 $ 1,008,181 $ 1,027,718
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Gross profit $ 542,698 $ 622,413 $ 556,395 $ 613,210 $ 647,677
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EBITDA $ (214,904) $ 108,828 $ 99,150 $ 173,448 $ 160,476
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Net income $ (262,732) $ 19,623 $ 15,140 $ 80,978 $ 91,168
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Earnings per share $ (0.008) $ 0.001 $ 0.000 $ 0.002 $ 0.003
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Total assets $ 1,256,446 $ 1,535,032 $ 1,251,438 $ 1,395,468 $ 1,310,939
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Total revenue decreased $56,918 (6%) from the first quarter of 2011 and $177,159 (17%) from the second quarter of 2010. This decrease in revenue is due to the effects of the prolonged global downturn, unusually harsh weather conditions in the first half of 2011 and a weaker US dollar.
Due to a $265,158 one-time, non-cash, impairment provision of accounts receivable, the Company recorded a net loss for the second quarter. The non-cash impairment provision relates to licensing fees earned under a five-year contract signed in August 2006. The Company is in ongoing discussions to collect the outstanding amount but due to the length of time the receivables have been outstanding, it has chosen to make a provision for the $265,158 at this time. If any amount is recovered, a gain will be recorded in the subsequent period.
"Our second quarter results have been overshadowed by a non-cash impairment provision. This is unfortunate, however, it was the prudent and conservative course of action to take. Absent this one-time, non-cash impairment provision, our second quarter was our eleventh straight profitable quarter since the fourth quarter of 2008," commented David MacLaren, President and CEO of VRX. "On the digital asset management side of our business, we are very pleased with the progress of MediaValet. We continue to receive great coverage in the press and MediaValet was recently showcased at Microsoft's 2011 Worldwide Partners Conference during Kim Aker's keynote presentation. As MediaValet continues to gain momentum, pioneering the cloud-based digital asset management industry, we continue to invest in research and development, sales and marketing and customer support."
The full financial statements and related MD&A are now available on the Company's website (www.vrxworldwide.com) and on SEDAR (www.sedar.com).
ABOUT VRX
Through a decade of growth, innovation and an unwavering commitment to quality, consistency and customer service, VRX is one of the world's leading providers of content production, distribution, licensing and digital asset management services. To find out more about VRX, its products and services, visit www.vrxstudios.com and www.mediavalet.co. VRX Studios Inc. is a wholly owned subsidiary of VRX Worldwide Inc. (TSX VENTURE: VRW) (www.vrxworldwide.com).
VRX Worldwide Inc.
David MacLaren, CEO
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts:
VRX Worldwide Inc.
Investor & Public Relations
888.605.0059
info@vrxworldwide.com
www.vrxworldwide.com
