Kaboose Announces 2008 Fourth Quarter and Year End Results



    TORONTO, April 1 /CNW/ - Kaboose Inc. (TSX: KAB), one of the largest
family-focused new media companies in the world, today announced financial
results for its fourth quarter and fiscal year ended December 31, 2008. The
results include the first full year of contribution from Bounty Group Limited,
the UK's largest parenting club and leading family destination online in the
United Kingdom, which Kaboose acquired on November 29, 2007.

    
    Financial Highlights for the Quarter

    -   Revenue increased 80% to $21.52 million from $11.97 million in the
        same quarter last year;

    -   EBITDA (earnings before interest, taxes, depreciation, amortization,
        stock-based compensation and other non-recurring charges) increased
        254% from $1.46 million in the same quarter last year to $5.17
        million in the fourth quarter of 2008, which includes $1.47 million
        in foreign exchange gains in the fourth quarter of 2008, compared to
        a loss of $0.01 million in the same quarter of 2007;

    -   Net loss for the quarter was $65.09 million, or $0.46 per share,
        compared to net income of $1.73 million, or $0.02 per share, in the
        fourth quarter of 2007, which includes the write-down of goodwill and
        long-lived assets of $65.54 million described below and amortization
        in the fourth quarter of 2008 related to previous acquisitions of
        $4.05 million, compared to $2.00 million in the same quarter of 2007;

    -   During the fourth quarter of 2008, in accordance with the Canadian
        Institute of Chartered Accountants accounting standards Section 3064
        "Goodwill and Intangible Assets", Kaboose conducted a review of its
        goodwill and long-lived assets for potential impairment; due to a
        material decline in the Company's market capitalization, the net loss
        includes a non-cash impairment charge of $65.54 million, comprised of
        write-downs to goodwill and long-lived assets of $60.32 million and
        $5.22 million, respectively, compared to nil in 2007; and

    -   Balance sheet as at December 31, 2008 includes cash and cash
        equivalents totaling $12.02 million and total bank debt of $19.36
        million.

    Financial Highlights for 2008

    -   Revenue increased 144% to $81.94 million from $33.63 million in
        fiscal 2007;

    -   EBITDA increased 188% from $4.21 million last year to $12.11 million
        in 2008, which includes $1.42 million in foreign exchange gains in
        2008, compared to a loss of $0.30 million in 2007; and

    -   Net loss for fiscal 2008 was $74.36 million, or $0.53 per share,
        compared to net income of $1.70 million or $0.02 per share in 2007;
        net loss for fiscal 2008 included a non-cash impairment charge of
        $65.54 million, comprised of write-downs to goodwill and long-lived
        assets of $60.32 million and $5.22 million, respectively, compared to
        nil in 2007, and amortization in 2008 related to previous
        acquisitions of $14.98 million, compared to amortization of $4.83
        million in 2007.
    

    "Our growth in revenue and EBITDA in 2008 primarily reflects a strong
contribution from Bounty, despite a very difficult environment," said Jason
DeZwirek, Chairman and Chief Executive Officer of Kaboose. "Amidst a weak
global economy and turbulent capital markets, the decline in our market
capitalization required that during the fourth quarter, in accordance with
accounting standards, we recognize a non-cash charge related to the impairment
of goodwill and long-lived assets. While the non-cash charge adversely
impacted our net loss for the fourth quarter and the year, it did not affect
our normal business operations, liquidity or availability of funds under our
credit facility."

    
    Operational Highlights for the Quarter

    -   Advertising clients whose campaigns ran in the quarter included top
        Fortune 500 companies such as Abbott Laboratories, Bayer, Bristol-
        Myers, DaimlerChrysler, Disney, Fidelity, Ford, Forest Laboratories,
        General Mills, General Motors, GSK, Hewlett-Packard, Johnson &
        Johnson, Kellogg's, Kimberly-Clark, Microsoft, Nestlé, Nintendo,
        Novartis, PepsiCo, Procter & Gamble, Reckitt Benckiser, Sega, Target,
        Time Warner, Toyota, Unilever, Viacom, Volkswagen and Wal-Mart;

    -   On October 16, 2008, the Company obtained a senior 364-day revolving
        loan credit facility with the Royal Bank of Canada to use for working
        capital and other general corporate purposes. The credit facility
        provides for a maximum of $5 million and is available based on North
        American accounts receivable as defined in the agreement. The credit
        facility bears interest at a rate that is based on prime or LIBOR
        plus an applicable margin. The Company and certain of its
        subsidiaries, excluding the assets of Bounty, pledged substantially
        all of their assets as security for the borrowings under the credit
        facility;

    -   In November 2008, Kaboose launched the Kaboose Family Publisher
        Community, wherein Kaboose represents the advertising inventory of
        high-quality web destinations servicing its core demographic of moms
        in order to increase the audience of moms it has able to offer its
        advertising clients; and

    -   Finally in November 2008, Kaboose re-launched ParentZone.com as the
        Company's new regional offering featuring local activities, resources
        and content from most major metropolitan centers across North
        America.

    Subsequent Event

    -   On February 9, 2009, Kaboose sold its Birthday In A Box operations.

    -   On March 31, 2009, the Company entered into two separate agreements
        to sell substantially all of its assets. For more information on
        these two transactions, please refer to the Company's news release
        titled, "Kaboose Announces the Sale of its UK Operations to funds
        managed by Barclays Private Equity Limited and its North American
        Business to Disney Online".

    Financial Summary
    -------------------------------------------------------------------------
                                    Three-month period   Twelve-month period
                                     ended December 31     ended December 31
    (in $ millions)                  2008(1)    2007(1)    2008(1)    2007(1)
    -------------------------------------------------------------------------
    Revenue                          $21.52     $11.97     $81.94     $33.63
    EBITDA(2)                          5.17       1.46      12.11       4.21
    Net income (loss)               $(65.09)     $1.73    $(74.36)     $1.70
    -------------------------------------------------------------------------
    (1)    2008 and 2007 results revised to reflect discontinued operations.
    (2)    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) with the loss for the three-month and
           twelve-month periods ended December 31, 2008 and 2007 are shown
           below (all numbers expressed in millions).

    -------------------------------------------------------------------------
                                    Three-month period   Twelve-month period
                                     ended December 31     ended December 31
    (in $ millions)                  2008(1)    2007(1)    2008(1)    2007(1)
    -------------------------------------------------------------------------
    Net income (loss)               $(65.09)     $1.73    $(74.36)     $1.70
    Add/(Deduct)
      Amortization                     4.05       2.00      14.98       4.83
      Interest, net                    1.20       0.07       2.59      (0.42)
      Provision for (recovery of)
       income taxes                   (3.33)     (1.07)     (4.94)     (2.03)
      Foreign currency gains              -      (1.10)     (0.09)     (1.10)
      Stock-based compensation         1.05          -       3.57       1.34
      Other non-recurring items        1.74      (0.16)      4.59      (0.43)
      Write-off of long-lived
       assets                          5.22          -       5.22          -
      Write-off of goodwill           60.32          -      60.32          -
      Loss from discontinued
       operations                      0.01      (0.01)      0.23       0.32
    -------------------------------------------------------------------------
    EBITDA(2)                         $5.17      $1.46     $12.11      $4.21
    -------------------------------------------------------------------------
    (1)    2008 and 2007 results revised to reflect discontinued operations.
    (2)    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.
    

    The annual financial statements and related management's discussion and
analysis are available for review on the Company's corporate website
(http://corporate.kaboose.com) on the Investor Relations - Financial Reports
page.

    About Kaboose Inc.

    Kaboose Inc. is a global media company fully dedicated to meeting the
needs of moms and their families. Kaboose ranks as one of the world's top five
family destinations and is a respected leader in the online parenting category
in three of the largest English speaking countries - the United States, Canada
and the United Kingdom. Kaboose provides parents with an extensive array of
relevant information, resources, tools and community that support their
efforts during the parenting life cycle. Kaboose's websites include its
award-winning flagship, Kaboose.com, which gives moms the tools they need to
plan an active, healthy and rewarding family life; Bounty, the UK's favourite
parenting club, providing information, support and products for young
families; BabyZone.com, serving the needs of expectant and new moms;
ParentZone.com, a family-focused local resource and event site;
AmazingMoms.com, providing simple and easy solutions for birthday parties,
family crafts and special occasions; and Funschool.com which promotes learning
while helping kids have fun. 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

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KABOOSE INC.

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