TIO Reports Q3 Fiscal 2014 Financial Results

TIO'S FIRST FULLY CONSOLIDATED QUARTER WITH NEWLY ACQUIRED GLOBAL EXPRESS DRIVES MATERIAL GROWTH

VANCOUVER, June 25, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal third quarter 2014 financial results for the period ended April 30, 2014.

Quarterly financial & business highlights

  • Revenue for the fiscal third quarter increased by 30% to $12,926,089 from $9,955,852 in the same period a year ago and by 29% sequentially from $9,985,193 in the second fiscal quarter of 2014. In fiscal third quarter, the Company processed more than 8.9M transactions, up 62.2% sequentially from 5.5M transactions in the previous second fiscal quarter.
  • Gross profit for the fiscal third quarter more than doubled to $4,451,307 from $2,204,173 in the same period a year ago and increased by 53% sequentially from $2.913,820 in the second fiscal quarter of 2014.
  • Gross margin % increased to 34.4% from 22.1% in the prior year. The Company added 457 locations sequentially, finishing the quarter with more than 65,000 location end-points active and available for processing. In addition, the Company added 2 new mobile/web programs for a total of 19 active programs.
  • The Company finished the quarter with $30,744,714 in cash and cash equivalents and restricted cash (including cash held to fulfill payment obligations and settle money orders outstanding).
  • During the quarter, the TIO branded wallet user base grew 30% sequentially to over 220,000 members.
  • Subsequent to the quarter end, the company's transactions experienced a significant increase due to expansion with an existing customer.  The average daily transaction volume for this customer during the last 30 days was 51,000 as compared to 14,000 during fiscal Q3 (the period under review).

 

Fiscal 2014

Three months ended April 30

Nine months ended April 30


2014

2013

2014

2013

Revenue

$     12,926,089 

$       9,955,852

$    31,172,614

$     30,607,045

Gross Profit

$        4,451,307

$       2,204,173

$      9,321,011

$       6,773,946

Adjusted EBITDA*

$           405,000

$            46,000

$         656,000

$          506,000

Operating Cash Flow before non-cash working capital items

$           297,581

$         (12,997)

$         470,456

$          224,405

Net Loss

$        (242,693)

$       (145,340)

$      (620,858)

$         (98,472)

 

Fiscal 2014 sequential quarterly results

Quarter ended

Quarter ended

April 30,
 2014

January 31,
2014

Revenue

$    12,926,089

$         9,985,193

Gross Profit

$      4,451,307

$         2,913,820

Adjusted EBITDA*

$         405,000

$            179,000

Operating Cash Flow before non-cash working capital items

$         297,581

$           (59,169)

Net Loss

$      (242,693)

$         (172,744)

 

*Adjusted EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization, stock-based compensation, and non-recurring transaction and restructuring expenses

"We had an excellent quarter where we saw significant inorganic growth as a result of the Globex acquisition completed in fiscal Q2" said Hamed Shahbazi, Chairman and CEO of TIO Networks. "We are confident about our prospects for further growth as we leverage the TIO's newly enhanced geographic, customer and product strengths."

A conference call to discuss the results will be held on Wednesday June 25, 2014 at 1:30 p.m. EST. To participate please dial, 416-644-3426 in Toronto or Toll free, 800-731-5319 and request the TIO Networks Conference.

TIO NETWORKS CORP.

TIO is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America.  With more than 65,000 physical location endpoints to its bill payment processing network, TIO symbolizes fast, convenient and secure access to high quality bill payment services.  Please visit www.tionetworks.com.

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, and stock-based compensation.  Adjusted EBITDA is EBITDA excluding 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.

For further information: John Lewis, Business Development - TIO Networks, Tel: 416-523-7086, Email: jrlewis@tionetworks.com; David Fore, Hayden IR, Tel: 206-395-2711, Email: Dave@haydenir.com

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