"Second Quarter Net Income Increased to
$1.6M, Six month net income increased
more than $3M to $3.1M or
$0.05 EPS."
VANCOUVER, March 30, 2016 /CNW/ - TIO Networks Corp. (TSX-V:
TNC) today announced second quarter financial results for the
period ended January 31, 2016.
Quarterly financial & business highlights (all
figures in CA dollars):
- Quarterly Adjusted EBITDA increased 397% on a Year over Year
(YoY) basis to $2.65M from
$533k and increased sequentially on a
quarter over quarter (QoQ) basis by 32% from Q1 2016
- Quarterly revenue increased QoQ by 7.3% to $16.4M
- Quarterly gross profit increased 30% to $8M on a YoY basis and 2% QoQ
- Quarterly net income increased to $1.66M or 3 cents
eps compared to a net loss of $252k
on a YoY basis
- Quarterly gross margin increased by 8.7% to 48.8% from 40.1% on
a YoY basis
- Cash Flow from Operating activities before non-cash working
capital items increased by $1.21M or
192% YoY to $1.84m
- Processed approximately 14M transactions worth approx.
$1.62B representing 3.4% YoY
transaction growth
- Quarterly results included onetime costs of $388K related to a contingent payment from the
ChargeSmart acquisition and M&A costs related to the Softgate
acquisition.
Finished the period with $42,447,169
in cash and cash equivalents and restricted cash (including cash
held to fulfill bill payment obligations) and no long-term
debt
Subsequent Events:
- On February 1, the Company closed
a private placement with gross proceeds of $5,125,282.32 to help fulfill cash payment
obligations related to the acquisition of New Jersey based Softgate Systems Inc. These
proceeds have not been reflected in these financial
statements.
- The Company has made significant progress on the regulatory
approval process related to its acquisition of Softgate Systems. As
of the date of this release, 46 out of 47 states where Softgate is
licensed have either indicated "no objection" or explicitly
approved the "change in control". The Company expects to receive
the remaining approval in short order to complete the
acquisition.
|
Three months ended
Jan. 31
|
Six months ended Jan.
31
|
|
2016
|
2015
|
2016
|
2015
|
Revenue
|
$ 16,396,968
|
$ 15,307,508
|
$ 31,673,790
|
$ 34,991,721
|
Gross
Profit
|
$
8,008,085
|
$ 6,141,671
|
$ 15,852,040
|
$ 12,078,781
|
Adjusted
EBITDA*
|
$
2,653,000
|
$
533,000
|
$ 4,663,000
|
$ 1,409,000
|
Cash Flow from
operations before non-cash working capital items
|
$
1,844,452
|
$
632,037
|
$ 3,816,624
|
$ 1,577,573
|
Net Income
(loss)
|
$
1,661,631
|
$ (252,230)
|
$ 3,065,228
|
$ (125,593)
|
Q2, 2016 sequential
comparison to
Q1, 2016
|
Quarter
ended
|
|
Jan. 31,
2016
|
Oct. 31,
2015
|
Revenue
|
$ 16,396,968
|
$ 15,276,822
|
Gross
Profit
|
$
8,008,085
|
$ 7,843,955
|
Adjusted
EBITDA*
|
$
2,653,000
|
$ 2,010,000
|
Cash flow from
operations
|
$ 1,844,452
|
$ 1,972,172
|
Net Income
|
$ 1,661,631
|
$ 1,403,597
|
"We had a fantastic quarter; The strong year to date growth in
revenue and earnings reflect the successful integration of acquired
entities, execution on margin expansion opportunities, stringent
cost control and strong FX tailwinds," said Hamed Shahbazi, Chairman and CEO of TIO
Networks. "Our businesses are performing well providing us with a
consistent and solid base of earnings. Management's near term
focus is to ensure a smooth transition of the Softgate systems
acquisition into our shared services infrastructure program and
make sure that we benefit from the key synergies provided for by
the transaction. Our overarching longer-term focus is to
continue to organically and inorganically build a cohesive and
strong competitor in the consumer bill payment and receivables
management marketplace for bill issuers of all sizes and
needs."
A conference call to discuss the results will be held today at
2:00pm EST, 11am PST.
To participate in the call please dial 416-204-9269 in
Toronto or Toll free,
1-800-499-4035 and request the TIO Conference, conference ID
1648702.
About TIO Networks
TIO Networks is a cloud-based multi-channel bill payment
processing and receivables management company, serving the largest
telecom, wireless, cable, and utility bill issuers in North America. TIO integrates with the back
office of billing systems to accept, validate, and accept payments
outside of the traditional bank channel, via self-service kiosk,
retail walk-in, mobile, and web solutions. With over 65,000
endpoints in its processing network, TIO symbolizes fast,
convenient, and secure access to expedited bill payment
services.
Visit: www.TIOnetworks.com.
Join the conversation at: www.twitter.com/TIOnetworks or Like
us: www.facebook.com/TIOnetworks
The TSX Venture Exchange has not reviewed this news release and
does not accept responsibility for its adequacy and accuracy.
This news release contains forward-looking statements that
involve risks and uncertainties, which may cause actual results to
differ materially from the statements made. Potentially, many
factors could cause our actual results to vary materially from
those described herein as intended, planned, anticipated or
expected. TIO Networks Corp. does not intend and does not
assume any obligation to update these forward-looking
statements.
* EBITDA is a non-IFRS measure - earnings before interest, tax,
depreciation and amortization. Adjusted EBITDA is EBITDA plus
stock-based compensation, non-recurring transaction and
restructuring expenses. EBITDA is not a defined term under
IFRS nor does it have a standard, agreed upon meaning.
Accordingly, the Company's EBITDA may not be directly comparable to
EBITDA reported by other issuers. Management had determined
EBITDA is a useful supplemental measure in evaluating the Company's
performance as it provides investors with an indication of cash
available for debt service, working capital needs and capital
expenditures. This non-IFRS measure is intended to provide
additional information on the Company's performance and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
SOURCE TIO Networks Corp.