Kaboose Reports Record Third Quarter Revenue of $8.34 Million and EBITDA of $1.41 Million



    Nine Month Revenues Increase 96% to $23.06 Million with EBITDA of $2.66
    Million

    TORONTO, Nov. 8 /CNW/ - Kaboose Inc. (TSX:KAB), the largest independent
family-focused online media company in North America, today announced
financial results for its third quarter and nine months ended September 30,
2007.

    
    Financial Highlights for the Quarter

    -   Record third quarter revenue of $8.34 million, compared to
        $5.91 million in the same quarter last year, an increase of 41%;

    -   EBITDA (earnings before interest, taxes, depreciation, amortization,
        tax credits, restructuring charges and stock-based compensation) was
        $1.41 million, an increase of 182% over $0.50 million in the
        same quarter last year;

    -   Net income for the quarter was $0.11 million or nil cents per share,
        compared to a net loss of $0.22 million or nil cents per share in the
        third quarter of fiscal 2006; and

    -   Balance sheet as at September 30, 2007 remains strong with cash and
        restricted cash totaling $23.32 million and no bank debt.

    Financial Highlights for the Nine Months

    -   Revenue for the nine months ending September 30, 2007 was
        $23.06 million, compared to $11.75 million in the same period last
        year, an increase of 96%;

    -   EBITDA (earnings before interest, taxes, depreciation, amortization,
        tax credits, restructuring charges and stock-based compensation) for
        the nine-month period ended September 30, 2007 was $2.66 million,
        compared to a loss of $1.01 million in the same period last year; and

    -   Net loss for the first nine-months of fiscal 2007 was $0.03 million
        or $0.00 per share, compared to net loss of $2.20 million or
        $0.03 per share in the same period of fiscal 2006.

    "We are very pleased with our third quarter results," said Jason DeZwirek,
Chairman and Chief Executive Officer of Kaboose. "This was an important
quarter in terms of both financial and operational growth. We realigned the
organization with the integration of our sales, editorial and product
development teams which we believe will better position the Company for
continued execution of our growth plan."

    Operational Highlights for the Quarter

    -   Advertising clients whose campaigns ran in the quarter included
        American Express, Disney, Fidelity Investments, Fisher-Price, Ford,
        GlaxoSmithKline, Hewlett-Packard, Honda, Johnson & Johnson,
        Kellogg's, Kimberly-Clark, Kodak, Kraft, Merck, Microsoft, Nestlé,
        Nikon, Novartis, Procter & Gamble, Target, Time-Warner, Toyota,
        Unilever, Visa and Wal-Mart;

    -   Kaboose partnered with Nikon Inc., the world leader in high quality
        digital imaging, precision optics and photo imaging technology, as
        the exclusive partner for the launch of Kaboose Photo in July 2007;

    -   Kaboose presented at two conferences: the 27th Annual Canaccord Adams
        Global Growth Conference in Boston on August 7, 2007, where
        executives from approximately 270 public and private companies
        attended one of the longest-running institutional events focused
        exclusively on growth companies, and the RBC Capital Markets' North
        American Technology Conference on August 8, 2007 in San Francisco;

    -   Kaboose was selected by Standard & Poor's (S&P) to be added to the
        S&P/TSX SmallCap Index and the Equity SmallCap Index (TSX: XCS)
        effective as of the open of business on September 24, 2007;

    -   Integrated the Company's sales, editorial and product development
        teams, as well as promoted Chris Sukornyk to Vice-President, Product
        Development; and

    -   Added online veterans Michael Green, Vice-President of Business
        Development, and Teresa Hsiao, Vice-President of Marketing, to
        management team.


    Financial Summary
    -------------------------------------------------------------------------
                                   Three-month period      Nine-month period
                                   ended September 30      ended September 30
    (in $ millions)                 2007        2006        2007        2006
    -------------------------------------------------------------------------
    Revenue                        $8.34       $5.91      $23.06      $11.75
    EBITDA(*)                       1.41        0.50        2.66       (1.01)
    Net income (loss)               0.11       (0.22)      (0.03)      (2.20)
    -------------------------------------------------------------------------
    (*) Reconciliation of EBITDA (earnings before interest, taxes,
        depreciation, tax credits, restructuring charges, amortization and
        share-based compensation), as reported above, to generally accepted
        accounting principles (GAAP). Results for the three-month and nine-
        month periods ended September 30, 2007 and 2006 are shown below (all
        numbers expressed in millions).

    -------------------------------------------------------------------------
                                   Three-month period      Nine-month period
                                   ended September 30      ended September 30
    (in $ millions)                 2007        2006        2007        2006
    -------------------------------------------------------------------------
    Net income (loss)              $0.11      $(0.22)     $(0.03)     $(2.20)
    Add/(Deduct)
      Amortization                  1.08        0.68        2.88        1.03
      Interest income (net)        (0.15)      (0.19)      (0.49)      (0.35)
      Stock-based compensation      0.63        0.17        1.31        0.41
      Tax credit                   (0.09)          -       (0.51)          -
      Restructuring charges         0.24           -        0.24           -
      Provision for income taxes   (0.41)       0.06       (0.74)       0.10
    -------------------------------------------------------------------------
    EBITDA(*)                      $1.41       $0.50       $2.66      $(1.01)
    -------------------------------------------------------------------------
    (*) 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 the largest independent, family-focused online media company
in North America 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 BabyZone.com,
ParentZone.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 for
Kaboose Inc. at TEL: (416) 593-3000 ext.290, FAX: (416) 593-4658

Organization Profile

KABOOSE INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890