TORONTO, ONTARIO -- (Marketwire) -- 05/11/12 -- Cyberplex Inc. (TSX: CX) a leader in performance-based online marketing and technology solutions today announced its financial results for the first quarter ended March 31, 2012. Total revenue for the quarter was $16.3 million, an increase from the $14.6 million recorded in the same quarter of 2011, and adjusted EBITDA loss for the quarter was approximately $341,000 as compared to income of $150,000 in the same period of 2011. The net loss for the quarter was $3.4 million as compared to a net loss of $3.6 million in the same year ago period.
Results for the First Quarter ended March 31, 2012
-- The Company generated revenue of $16.3 million, a 65% increase from the
$9.9 million recorded in the previous quarter;
-- Adjusted EBITDA loss for the quarter was $ 341,000, as compared to an
Adjusted EBITDA loss of $1.8 million in the previous quarter;
-- Excluding the operations of Tsavo Media, revenue for the quarter was
$3.5 million and adjusted EBITDA was a loss of $622,000;
-- Net loss for the quarter was $3.4 million compared to a net loss of $4.6
million in the previous quarter; and
-- Cash flow from operations used $3.2 million in cash for the three months
ended March 31, 2012, as compared to cash generated of $2.8 million for
the same period in 2011.
On April 24, 2012, the Company announced the sale of Tsavo Media as part of a series of transactions valued at approximately $33 million (the "Transaction") in which the Company received cash proceeds of approximately $7.3 million and reduced its debt obligations from approximately $25.6 million to approximately $150,000. As a result of the Transaction, the Company's financial position has been improved significantly.
"The sale of Tsavo has resulted in much more stable and focused organization" said Geoffrey Rotstein, Chief Executive Officer of Cyberplex. "From both a financial and a strategic perspective, Cyberplex is now able to deliver quality digital marketing solutions to our clients without further distractions and has the financial resources required to fund sustainable growth in this exciting digital environment."
Non-IFRS Financial Measures
This press release includes a discussion of "Adjusted EBITDA," which is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net loss from operations before; (a) depreciation of property and equipment and amortization of intangible assets; (b) stock-based compensation expense, (c) restructuring and acquisition costs, (d) Impairments of goodwill and intangible assets and other items net. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information related to the Company's ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in accordance with the Company's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
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Three months ended
March 31,
(In thousands of Canadian dollars) 2012 2011
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Net loss from operations $ (2,875) $ (2,851)
Add:
Depreciation of property and equipment 301 381
Amortization of intangible assets 2,008 2,210
Restructuring and acquisition expenses 221 263
Stock based compensation 4 147
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Adjusted EBITDA $ (341) $ 150
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Normal Course Issuer Bid
The Company also today announced that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by the Company of its previously announced intention to make a normal course issuer bid, commencing May 14, 2012 and expiring May 13, 2013. Under the bid, the board of directors has authorized the purchase of up to 11,913,232 of its common shares, representing approximately 10% of the "public float" of common shares. Daily purchases will be limited to 40,721 common shares, other than block purchase exceptions. Purchases will be made on the open market by Cyberplex through the facilities of the TSX in accordance with TSX requirements. The prices that Cyberplex will pay for any purchased common shares will be the market price of such shares on the TSX at the time of acquisition.
Cyberplex has 127,525,349 common shares issued and outstanding as of May 10, 2012, with a public float of 119,132,316 common shares. The Company has not purchased any of its common shares during the preceding 12 months pursuant to a normal course issuer bid.
The Company believes that from time to time the common shares of the Company have been trading at prices that do not fully reflect the underlying value of the Company. As a result, Cyberplex believes that its common shares are a good investment at its current and recent prices.
The Company may from time to time enter into a pre-defined plan with a registered investment dealer to allow for the repurchase of common shares at times when Cyberplex ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules, or otherwise. This plan will be adopted in accordance with applicable TSX rules and Canadian securities laws.
About Cyberplex
Cyberplex Inc. (www.cyberplex.com) is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, connects advertisers to their most relevant online customers and prospects. Cyberplex delivers targeted, high quality results through online, mobile and social initiatives that improve advertiser ROI, monetize the value of online properties, and build loyal online audiences.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Cyberplex Inc.
Unaudited Interim Condensed Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
March 31, 2012 December 31, 2011
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Assets
Current assets:
Cash and cash equivalents $ 1,260 $ 4,050
Accounts receivable 12,099 8,769
Income taxes recoverable - 31
Other current assets 7,046 6,907
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20,405 19,757
Non-current assets:
Restricted cash 2,317 2,357
Property and equipment 1,828 1,998
Intangible assets 19,673 22,069
Goodwill 358 365
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24,176 26,789
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Total assets $ 44,581 $ 46,546
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 15,202 $ 13,707
Current portion of loans and borrowings 24,680 4,697
Current portion of deferred lease
inducements 71 71
Deferred revenue 537 498
Income taxes payable 348 348
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40,838 19,321
Non-current liabilities:
Loans and borrowings 936 20,836
Deferred lease inducements 85 114
Deferred tax liabilities 548 603
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1,569 21,553
Shareholders' Equity 2,174 5,672
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Total liabilities and Shareholders'
equity $ 44,581 $ 46,546
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Cyberplex Inc.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income
(Loss)
(In thousands of Canadian dollars, except per share amounts)
Three months ended March 31, 2012 and 2011
2012 2011
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Revenue $ 16,325 $ 14,603
Expenses:
Publishing and advertising costs 11,493 8,916
Employee compensation and benefits 3,175 3,904
Other operating expenses 2,002 1,780
Depreciation of property and equipment 301 381
Amortization of intangible assets 2,008 2,210
Restructuring costs 221 263
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19,200 17,454
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Loss from operations (2,875) (2,851)
Finance income (14) (19)
Finance cost 595 892
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Loss before income taxes (3,456) (3,724)
Income tax recovery:
Deferred 55 130
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55 130
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Loss for the period (3,401) (3,594)
Other comprehensive income (loss):
Net change in fair value of available-for-sale
financial assets - 8
Foreign currency translation adjustments to equity (101) (299)
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Other comprehensive income (loss) for the period,
net of tax (101) (291)
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Total comprehensive loss for the period $ (3,502) $ (3,885)
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Loss per share:
Basic $ (0.03) $ (0.03)
Diluted $ (0.03) $ (0.03)
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Cyberplex Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
Three months ended March 31, 2012 and 2011
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2012 2011
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Cash flows from operating activities:
Loss for the period $ (3,401) $ (3,594)
Adjustments to reconcile net loss to net cash flows
from operating activities:
Depreciation of property and equipment 301 381
Amortization of intangible assets 2,008 2,210
Amortization of deferred lease inducements (29) (29)
Share-based payments 4 147
Foreign exchange loss (gain) (3) 130
Finance (income) cost, net 526 873
Deferred income tax recovery (55) (130)
Restructuring cost 221 263
Change in non-cash operating working capital (2,811) 2,523
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Cash generated from operating activities (3,239) 2,774
Income taxes received 31 0
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Net cash from (used in) operating activities (3,208) 2,774
Cash flows from financing activities:
Proceeds from bank operating facility 625 -
Repayment of term loans - (2,176)
Repayment of finance lease (16) -
Interest paid (72) (814)
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Net cash from (used in) financing activities 537 (2,990)
Cash flows from investing activities:
Sale of short-term investments - 1,294
Interest income received 3 19
Decrease in restricted cash and short-term
investments 40 115
Additions to property and equipment (165) (97)
Additions to intangible assets - (11)
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Net cash from (used in) investing activities (122) 1,320
Foreign exchange gain (loss) on cash held in foreign
currency 3 (130)
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Increase (decrease) in cash and cash equivalents (2,790) 974
Cash and cash equivalents, beginning of period 4,050 5,192
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Cash and cash equivalents, end of period $ 1,260 $ 6,166
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Contacts:
Cyberplex Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
press@cyberplex.com
www.cyberplex.com
