MONTREAL, May 28 /CNW Telbec/ - Kangaroo Media Inc. (TSX: KTV.V)
announced today results for its 1st quarter 2009.
- Revenues totaled $361,000 compared to $991,000 last year.
- Gross margin improved by $600,000 to $(6,000), compared to ($606,000)
- Operating expenses reduced by $1.2 to $1.6 million, down from
$2.8 million in 2008
- Net earnings (loss) improved and totaled $(2.1) million compared to
$(3.5) million last year; on a per share basis, ($0.06) versus ($0.10)
in Q1 2008
- Company had $4.8 million in liquidity and short term investments at the
end of the quarter
For the quarter ended March 31, 2009, revenues totaled $361,000 down from
$991,000 in Q1 2008. Revenues in NASCAR declined 58%, or $261,000 due to lower
unit sales and lower professional services in Q1 2009 vs. Q1 2008. F1 revenue
declined by $369,000, or 68%, to $171,000 in Q1 2009 due to 1 race in Q1 2009
compared to 2 races in Q1 2008 and lower activations at the 1 race, a
reduction in non-cash sponsorship revenue, lower sales of bespoke programs,
offset in part, by new revenue from annual license and annual equipment lease
The gross margin for Q1 2009 increased by $600,000, to $(6,000) compared
to ($606,000) in Q1 2008. The improvement is due to of a reduction of $1.0
million in F1 costs, the elimination of NFL costs, lower production and
manufacturing costs, as well as lesser NASCAR costs, offset in part, by the
lower revenues in NASCAR and F1. The net loss was reduced by approximately
$1.4 million, or 48%, mainly as a result of lower operating expenses due to
the Company's restructuring in the last quarter of 2008.
"Q1 is typically a period of lower revenues for Kangaroo as the sporting
season is just getting under way and this year, in the first three months,
there have been fewer scheduled car races in NASCAR and F1. The financial
highlight of the quarter has been the significantly smaller net loss as a
result of considerably lower operating costs. As an organization, we are
getting better at executing and focusing on the areas that are core to our
service, our device and our profitability, explained Robert Mimeault,
President and CEO of Kangaroo. Looking back on the first quarter and the past
few weeks, I am very encouraged by the way in which sports organizations are
increasingly realizing the importance of fan experience enhancement for their
own fan relationship development. The agreements with the USGA and the Miami
Dolphins are prime examples of this realization."
An analyst conference call on the Q1 Fiscal 2009 results will take place
on May 29, 2009 at 8:30 A.M (Eastern). To participate or listen to the
conference call, dial 1 800 733 7560 approximately 10 minutes prior to the
start of the call. A replay of the conference call will be available until end
of day June 12, 2009, commencing at 10:30 A.M. the day of the call. The
instant replay number is 1-877-289-8525, passcode 21306946#.
About Kangaroo Media Inc.
Kangaroo Media Inc. is a market leader in enhancing the in-venue sports
fan experience. The company develops and commercializes hand-held wireless
audiovisual multi-functional entertainment systems that enable users to expand
and tailor their on-site viewing experience of sporting events. Kangaroo
Media's technology delivers real-time video, audio and data content to each
fan's hand-held Kangaroo TV device. It gives fans the ability to create their
own tailor-made live-action sporting event on-site. Kangaroo Media,
headquartered near Montreal, Canada, is listed on the TSX Venture Exchange as
KTV.V. For more information, visit www.kangaroo.tv.
This news release contains forward-looking information. These statements
relate to future events or future performance and reflect management's current
expectations and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to management of Kangaroo. A number of factors such as the benefit of the
Agreement, the leveraging of the intellectual property it creates and the
increased intellectual property protection it provides could cause actual
events, performance or results to differ materially from the events,
performance and results discussed in the forward-looking statements. These
forward-looking statements are made as of the date hereof and unless required
by law Kangaroo does not assume any obligation to update or revise them to
reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Robert Mimeault, President & CEO, Kangaroo
Media, (450) 595-2000, email@example.com