6TH CONSECUTIVE QUARTER OF RECORD
ADJUSTED EBITDA
VANCOUVER, Nov. 16, 2016 /CNW/ - TIO Networks Corp. (TSX-V:
TNC) today announced fiscal fourth quarter and full fiscal year
2016 financial results for the period ended July 31, 2016.
Annual and Quarterly financial & business highlights (all
figures in CA dollars)
- Annual Adjusted EBITDA increased by 283% year over year (YoY)
to $10.6M. Q4 Adjusted EBITDA
increased sequentially on a quarter over quarter (QoQ) basis by
7.4% to $3.1M.
- Annual revenue increased by 19.4% to $74.7M YoY. Q4 revenues increased 79.3% YoY to
$25M or by 39.3% QoQ compared to Q3
2016.
- Annual gross profit increased by 45% to $36.6M. Q4 gross profit increased by 75% to
$11.8M as compared to Q4 last
year.
- Annual gross margin improved to 49.0% from 40.5% YoY. Quarterly
gross margin decreased to 47.4% from 48.5% as compared to Q4 last
year.
- During fiscal 2016, the Company generated $8.1M in free cash flow from operations. This was
an increase of 274% YoY.
- During fiscal 2016, the Company processed approximately 63.9M
transactions worth about $7.3B USD,
representing 18.3% YoY transaction growth. In Q4, the Company
processed 20.7M transactions worth $2.1B
USD representing a 49.9% increase over the same period last
year.
- The Softgate acquisition inclusive of related restructuring
synergies will add more than $6M USD
in annual EBITDA to TIO's bottom line.
- During Q4, TIO incurred one-time mostly M&A related costs
in the amount of $1.51M. 80% of this
was related to M&A activities such as Softgate restructuring
costs and 20% was related to the revaluation of our Softgate
related debt at a higher USD/CAD rate as of July 31 as compared to the previous balance sheet
date of April 30, 2016. Also, in Q4,
the Company booked $0.67M of income
tax expense related FY2016 while only $0.02M was booked in the first 3 quarters.
- During fiscal 2016, the Company invested and expensed a record
$5.5M in R&D initiatives to
support and drive growth
- At year-end TIO's direct-to-consumer membership grew to 1.28M
members.
- Net cash for use in operations is $11.8M
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Three months ended
July 31,
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Year ended July
31,
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In thousands
expressed in Canadian dollars
|
2016
|
2015
|
2016
|
2015
|
Revenue
|
$
|
25,020
|
$
|
13,951
|
$
|
74,661
|
$
62,511
|
Gross
Profit
|
$
|
11,848
|
$
|
6,769
|
$
|
36,620
|
$
|
25,307
|
Adjusted
EBITDA*
|
$
|
3,092
|
$
|
1,350
|
$
|
10,635
|
$
|
3,760
|
Operating Cash Flow
before non-cash working capital items
|
$
|
2,296
|
$
|
908
|
$
8,162
|
$
|
2,981
|
Net Income
(loss)
|
$
|
(478)
|
$
|
142
|
$
|
4,193
|
$
|
41
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"2016 was a transformational year for TIO," said Hamed Shahbazi, Chairman and CEO of TIO
Networks. "We closed and have made great progress in integrating
the Softgate acquisition – the largest in our corporate
history. Our annual revenue and profitability hit record
highs and has put us in the best financial position we have ever
been as a company. With the full-weight of Softgate's financial and
operational strengths ahead of us, in addition to other catalysts
that we are working on, 2017 promises to be another strong year of
profitable growth."
A conference call to discuss the results will be held
Wednesday, November 16, 2016 at
2:00 pm EST, 11:00am PST. To participate in the call please
dial 416-642-5209 in Toronto or
Toll free, 1-800-263-0877 and request the TIO Conference,
conference ID 1265374.
To learn more, visit: www.TIOnetworks.com
About TIO Networks Corp
TIO 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 more than 71,000
endpoints in its processing network, TIO symbolizes fast,
convenient, and secure access to expedited bill payment
services.
Visit: www.TIO.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.