Kaboose Announces 2007 Annual Revenue of $35.5 Million and Ebitda of $5.3 Million - Revenue Increases 72% and EBITDA Increases 321%



    TORONTO, March 6 /CNW/ - Kaboose Inc. (TSX: KAB), one of the largest
family-focused online media companies in the world, today announced financial
results for its fiscal year and fourth quarter ended December 31, 2007, which
include the results from the Bounty Group Limited, the UK's largest parenting
club and leading family destination online in the United Kingdom, acquired by
Kaboose on November 29, 2007.

    
    Financial Highlights for 2007

    -   Revenue was a record $35.5 million, compared to $20.6 million for
        fiscal 2006, an increase of 72%;

    -   EBITDA (earnings before interest, taxes, depreciation, amortization,
        stock-based compensation and other non-recurring charges) was
        $5.3 million, compared to $1.3 million in fiscal 2006;

    -   Net earnings for the year were $1.7 million or $0.02 per share,
        compared to a loss of $0.1 million or $0.00 per share in fiscal 2006;
        and

    -   Balance sheet remains strong as at December 31, 2007, with cash, cash
        equivalents and short term investments totaling $18.8 million and
        debt totaling $25.1 million.

    Financial Highlights for the Quarter

    -   Revenue was $12.4 million in the fourth quarter of 2007, compared to
        $8.8 million in the same quarter last year, an increase of 41%; and

    -   EBITDA (earnings before interest, taxes, depreciation, amortization,
        stock-based compensation and other non-recurring charges) was $2.6
        million in the fourth quarter of 2007, compared to $2.3 million in
        the fourth quarter of 2006.

    Pro Forma Highlights for 2007

    -   Assuming Bounty had been acquired as of January 1, 2007, revenue and
        EBITDA for 2007 would have been $82.2 million and $14.4 million,
        respectively; and

    -   For the fourth quarter of 2007, revenue would have been $21.8 million
        and EBITDA would be $4.7 million.

    "We are very pleased with the results for 2007 as we achieved significant
growth across the business, generating record revenues and EBITDA," said Jason
DeZwirek, Chairman and Chief Executive Officer of Kaboose. "With our recent
acquisition of Bounty, Kaboose now has a global presence and has solidified
itself as one of the largest family-focused online media companies in the
world, with a leadership position in three of the world's largest
English-speaking markets - the United States, the United Kingdom and Canada."
    Mr. DeZwirek continued, "With the addition of Craig Wallace as our
President & COO and our diverse breadth of products and revenue streams,
including online advertising, lead generation, email, direct marketing,
product sampling and commerce transactions, Kaboose today is in the strongest
position in its history to capitalize on the incredible growth prospects in
our industry and to help the leading consumer brands reach our highly coveted
target audience of young families."

    Operational Highlights for the Quarter

    -   Advertising clients whose campaigns ran in the quarter included top
        Fortune 500 companies such as Bayer, Bristol-Myers, DaimlerChrysler,
        Disney, Fidelity, Ford, Forest Laboratories, GSK, Hewlett-Packard,
        Johnson & Johnson, Kimberly-Clark, Merck, Microsoft, Novartis,
        Pfizer, Procter & Gamble, Sony, Toyota, Unilever, Visa, and Wal-Mart;

    -   Kaboose strengthened its management team with the appointment of
        former AOL and Microsoft executive, Craig Wallace, as President &
        Chief Operating Officer of Kaboose Inc;

    -   Kaboose completed the acquisition of 100% of the outstanding shares
        of Bounty, the UK's largest parenting club and the leading family
        destination online, for (pnds stlg)70 million (approximately $140
        million) less debt and other long-term liabilities; and

    -   Kaboose completed a bought deal equity financing for aggregate gross
        proceeds of approximately $115 million, as well as a new credit
        facility to finance the Bounty acquisition.

    Subsequent Events

    -   Bounty extended its relationship with two key customers: ASDA, a Wal-
        Mart company and the second largest grocer in the U.K., and Johnson &
        Johnson, one of the leading manufacturers of baby care products;

    -   For the second year in a row, Kaboose's scrapbooking site,
        TwoPeasInABucket.com, was named the Top Internet Site and Top
        Internet Retailer in Creating Keepsakes Readers' Choice Awards; and

    -   Bounty launched a new online and offline financial service for
        families, called Bounty Money, which was developed in partnership
        with Skipton Building Society, one of the largest financial services
        providers in the U.K.

    Financial Summary

    -------------------------------------------------------------------------
                                 Three-month period      Twelve-month period
    Income Statement Data         ended December 31        ended December 31
    (in $ millions)                  2007      2006           2007      2006
    -------------------------------------------------------------------------
    Revenue                        $12.41     $8.82         $35.47    $20.57
    EBITDA(1)                        2.60      2.25           5.26      1.25
    Net profit (loss)                1.73      2.11           1.70     (0.09)
    -------------------------------------------------------------------------
    (1) Reconciliation of EBITDA (earnings before interest, taxes,
        depreciation, amortization, stock-based compensation and other non-
        recurring charges), as reported above, to generally accepted
        accounting principles (GAAP). Earnings (loss) for the three-month and
        twelve-month periods ended December 31, 2007 and 2006 are shown below
        (all numbers expressed in millions).

    -------------------------------------------------------------------------
                                 Three-month period      Twelve-month period
                                  ended December 31        ended December 31
    (in $ millions)                  2007      2006           2007      2006
    -------------------------------------------------------------------------
    Net profit (loss)               $1.73     $2.11          $1.70    $(0.09)
    Add/(Deduct)
      Amortization                   2.03      0.64           4.91      1.67
      Restructuring                  0.00      0.00           0.24      0.00
      Interest, net                  0.07     (0.19)         (0.42)    (0.54)
      Tax credits                   (0.18)    (0.39)         (0.69)    (0.39)
      Other income/non-recurring
       charges                      (0.60)     0.00          (0.60)     0.00
      Stock-based compensation       0.69      0.10           2.00      0.51
      Provision for income taxes    (1.14)    (0.02)         (1.88)     0.08
    -------------------------------------------------------------------------
    EBITDA(1)                       $2.60     $2.25          $5.26     $1.25
    -------------------------------------------------------------------------
    (1) Kaboose presents EBITDA information as a supplemental figure because
        management believes it provides useful information regarding
        operating performance. EBITDA is not a recognized measure under
        Canadian GAAP, does not have standardized meaning, and is unlikely to
        be comparable to similar measures used by other companies.
        Accordingly, investors are cautioned that EBITDA should not be
        construed as an alternative to net earnings or loss determined in
        accordance with GAAP as an indicator of the financial performance of
        the Company or as a measure of the Company's liquidity and cash
        flows.
    

    About Kaboose Inc.

    Kaboose is one of the largest family-focused online media companies in
the world and one of the top-five most visited family destinations online.
From pregnancy to parenting, birthday parties to scrapbooking, and
entertainment to education, Kaboose has the content and applications to help
parents plan and share their family life. Kaboose owns some of the world's
leading online properties targeting families, including Bounty.com,
BabyZone.com, Kaboose.com, AmazingMoms.com, TwoPeasInABucket.com,
BubbleShare.com, BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose
trades on the Toronto Stock Exchange under the symbol "KAB."

    This document may contain forward-looking statements, relating to Kaboose
Inc.'s operations or to the environment in which it operates, which are based
on Kaboose Inc.'s operations, estimates, forecasts and projections. These
statements are not guarantees of future performance and involve risks and
uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.'s
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in these forward-looking statements.
Consequently, readers should not place any undue reliance on such
forward-looking statements. Kaboose Inc. disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.





For further information:

For further information: Jonathan Pollack, Chief Financial Officer, Tel:
(416) 593-3000, Fax: (416) 593-4658

Organization Profile

KABOOSE INC.

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