- The company weathers its toughest quarter -
VANCOUVER, May 26 /CNW/ - OneMove Technologies Inc. ("OneMove" or the
"Company") (TSX-V: OM), which provides a leading web-based real estate
transaction platform, today announces its financial results for the three- and
nine-month periods ended March 31, 2009. OneMove also announces the short term
bridge financing of $125,000 completed in the quarter. All figures are
reported in Canadian dollars unless otherwise stated.
Q3 Fiscal 2009 Operational Summary
- The newest referral campaign launched by the Company in January drove
further adoption of econveyance(TM) in Q3 fiscal 2009, with OneMove
adding the 331st firm to its technology platform, representing a
44.5% increase over 229 firms in Q3 fiscal 2008.
- Expansion of the user base to over 2000 lawyers, notaries and
conveyancers from 1242 in Q3 fiscal 2008.
- Total transactions processed in the quarter were 8,760, compared to
11,214 in Q3 fiscal 2008.
- Average daily revenue was $3,961, down from $4,581 in Q3 fiscal 2008.
- Announcement of econveyancePro the Company's next-generation, fully-
upgraded, web-based conveyancing software platform to be available
- The Company obtained short term bridge financing of $125,000 during
- A 20% wage and salary reduction was implemented effective March 1,
- The Company launched the first ever conveyance software certification
program of its kind with community colleges legal assistant courses
throughout British Columbia.
- The Company announced its own direct access portal for May 1, 2009
saving 27% of commission and fees previously paid to be a menu
selection on BC OnLine.
- OneMove recognized by the National Research Council of Canada as a
Q3 Fiscal 2009 Financial Summary
On March 7, 2008, OneMove completed the sale of its U.K.-based subsidiary,
OneMove Limited. As such, OneMove's financial results for the three- and
nine-month periods ended March 31, 2009, exclude contributions from OneMove
Limited and are reported on a continuing operations basis.
Q3 FY 2009 Q3 FY 2008 % Change
Revenue $264,072 $335,410 (21%)
Adjusted EBITDA (loss)(1) $(338,117) $(195,330) (73%)
Net income (loss) $(427,368) $(285,184)(2) (50%)
Net income (loss) per share $(0.01) $(0.01)(2) 0%
9M FY 2009 9M FY 2008 % Change
Revenue $1,030,331 $1,145,048 (10%)
Adjusted EBITDA (loss)(1) $(968,327) $(862,872) (12%)
Net income (loss) $(1,225,162) $(1,073,495)(2) (14%)
Net income (loss) per share $(0.02) $(0.02)(2) 0%
"In Q3, we demonstrated the success of our initial cost-cutting measures
by reducing our expenses on a year-over-year and sequential basis," said
Martin Johnson, President and CEO, OneMove. "Although we saw a decline in
revenue compared to last year, we believe the significant growth in our
customer base and recent price increases helped to minimize the negative
impact of the market-wide reduction in real estate transactions."
Mr. Johnson continued: "We recognized the challenges the British Columbia
real estate market was facing and as a result implemented dramatic cost saving
measures which included a 20% reduction of wages and salaries effective March
1, 2009. Of greater significance was the Company's decision to create its own
direct access portal and no longer be a menu selection on BC OnLine. This
decision is perhaps the single biggest cost reduction initiative that we have
undertaken since we started and results in a saving of 27% of revenues earned
starting May 1, 2009. Our focus on operational efficiency and continued market
penetration positions us to successfully weather the storm and drive growth
over the long-term. Despite the economic slowdown and seasonal reductions in
revenues we have seen a dramatic recovery in revenues subsequent to quarter
end. The expansion of our user base and the general overall improvement in
transactional volume has returned revenues to record levels. We were pleased
to announce that we reached a major milestone in breaking even for the first
time in April 2009. Of no less significance is the patience and support of our
trade creditors who have shown their continued belief in our ability to
achieve profitability by granting us flexible terms throughout these tough
times. This flexibility has enabled us to focus on growing the business. We
feel confident that the combination of a recovery in the volume of
transactions, dramatic expense reductions and significant market share growth
has finally put the company on the doorstep of profitability. Moving forward
we continue to evaluate options to fund the working capital deficit created
and maintain our future growth."
Q3 Fiscal 2009 Financial Review
Revenue for Q3 fiscal 2009 was $264,072, compared to $335,410 for Q3
fiscal 2008. As a result of a decrease in real estate transactions throughout
British Columbia, OneMove processed fewer transactions in Q3 fiscal 2009,
compared to Q3 fiscal 2008. Revenue for the first nine months of fiscal 2009
was $1,030,331, compared to $1,145,048 for the first nine months of fiscal
2008. Increased market penetration and improving underlying conditions have
seen revenues growing by an average month over month rate of 26% since January
For Q3 fiscal 2009, total expenses were $679,360, a decrease of
approximately 6% from $723,479 in Q2 fiscal 2009 and 9% from $747,216 in Q3
fiscal 2008. The reduction in expenses reflects the continued success of
cost-saving measures the Company put in place during the previous two quarters
with total expenses down 21% compared to Q1 of 2009. OneMove reduced expenses
primarily through implementation of a 20% reduction in wages and salary in the
last month of the quarter plus a negotiated reduction of the fees paid in
connection with being a menu selection item with BC OnLine for the quarter.
The impact of the reduction in employment expenses and the 27% savings in
commissions and fees by coming off BC OnLine will have a more significant
impact in the coming quarters. For the first nine months of fiscal 2009, total
expenses were $2,271,248, down from $2,355,558 for the nine months of fiscal
Adjusted EBITDA for continuing operations was $(338,117) in Q3 fiscal
2009, compared to $(195,330) in Q3 fiscal 2008. Adjusted EBITDA for continuing
operations was $(968,327) for the first nine months of fiscal 2009, compared
to $(862,872) for the first nine months of fiscal 2008. Adjusted EBITDA
figures for Q3 2008 and the first nine months of fiscal 2008 where offset by a
one time foreign exchange gain of approximately $120,000 related to the former
For Q3 fiscal 2009, net loss was $(427,368), or $(0.01) per share,
compared to $(285,184), or $(0.01) per share, and net loss including
discontinued operations of $(1,229,910), or $(0.03) per share, for Q3 fiscal
2008. For the first nine months of fiscal 2009, net loss was $(1,225,162), or
$(0.02) per share, compared to $(1,073,495), or $(0.02) per share, and net
loss including discontinued operations of $(3,601,262), or $(0.07) per share,
for the first nine months of fiscal 2008.
In Q3 fiscal 2009, cash used in operations was $(212,835), compared to
$(421,061) in Q3 fiscal 2008. In the first nine months fiscal 2009, cash used
in operations was $(788,802), compared to $(1,022,961) in the first nine
months of fiscal 2008.
As at March 31, 2009, OneMove had cash and cash equivalents of $47,246,
compared to $33,833 as at December 31, 2008, and $193,850 as at June 30, 2008.
The Company had a working capital deficit of $(95,213) as at March 31, 2009,
compared to working capital of $(98,730) as at December 31, 2008, and $30,896
as at June 30, 2008. As at March 31, 2008, OneMove had deferred revenue of
$91,863 compared to $82,529 as at December 31, 2008, and $30,000 at June 30,
Effective March 1, 2009, OneMove implemented a company-wide reduction in
salaries and wages of 20%. The Company anticipated this will result in savings
of approximately $20,800 per month, or $250,000 annualized, with the first
month of savings reflected in the Company's Q3 of fiscal 2009 results.
Compared to Q3 of fiscal 2008 there has been a reduction of $48,940 or 12%. In
addition, OneMove continues to work to decrease its investment in other areas
of the business, particularly in non-revenue generating activities, as a means
of reducing its overall cost base, and is actively evaluating financing
options to fund the remaining working capital deficit and support its
Effective May 1, 2009, the Company decided not to renew its contract with
BC OnLine to continue being a selection item on their menu. We created a new
web portal to allow users direct access to econveyance(TM). Each user is
required to set up a pre-funded account, with the Company, which is drawn down
per transaction. The Company will incur minimal account management costs and
recognize an immediate 27% reduction in expenses, based on revenues earned,
due to the elimination of BC OnLine fees and charges.
Total shares issued and outstanding were 57,306,632 as at March 31, 2009.
The full MD&A and financial statements for OneMove will be available at
www.onemovetech.com and www.sedar.com
(1) Adjusted EBITDA for continuing operations is used internally by the
Company to compare cash operating resulted from one period to
another. EBITDA for the purposes of this analysis also excludes stock
based compensation, shares issued for services and "Other
income/losses" per the financial statements. EBITDA does not have any
standardized meaning prescribed by GAAP and therefore may not be
comparable to similar measures presented by other companies.
(2) Net income (loss) from continuing operations
About OneMove Technologies Inc.
OneMove Technologies Inc. (TSX-V: OM) offers a leading real estate
transaction platform. Through econveyance(TM), its proprietary web-based
conveyancing software solution, OneMove(TM) simplifies and expedites the
process of buying and selling real estate in British Columbia, Canada.
Econveyance links all participants in the property transfer process, offering
a secure and efficient means of seamlessly completing the transaction online.
Additional information about OneMove can be found at www.onemovetech.com or
Forward Looking Statements
This press release contains certain "forward looking statements." These
statements relate to future events or future performance and reflect
expectations and belief regarding growth, results of operations, performance,
business prospects, opportunities or industry performance and trends. These
forward looking statements reflect current internal projections, expectations
or beliefs and are based on information currently available. A number of
factors could cause actual events or results to differ materially from the
results discussed in the forward looking statements. Although it is believed
that the forward looking statements contained in this press release are based
upon reasonable assumptions, investors cannot be assured that actual results
will be consistent with these forward looking statements. These forward
looking statements are made as of the date of this press release, and OneMove
Technologies Inc. assumes no obligation to update or revise them to reflect
new events or circumstances, except as required pursuant to applicable
Neither 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: Martin R. Johnson, President & CEO, (604)
662-8207 ext 116, firstname.lastname@example.org; William Cawker, Corporate
and Investor Services, (604) 662-8207 ext 104, email@example.com