Rare Method Achieves Record Year



    CALGARY, Oct. 30 /CNW/ - Rare Method today announced Fourth Quarter &
Full Year Highlights and are pleased to report record revenue, gross income,
EBITDA and net earnings from continuing operations for the year ended June 30,
2008.
    The following tables provide a comparison of the full year ended June 30,
2008 to June 30, 2007 and Q4 2008 to Q4 2007:

    
          Year ended June 30:
    -------------------------------------------------------------------------
                                                                 Increase/
    Description                    2008            2007          decrease
    -------------------------------------------------------------------------
    Revenue(1)                $12.69 million   $9.37 million        35%
    -------------------------------------------------------------------------
    Gross Income(1)            $8.80 million   $7.07 million        25%
    -------------------------------------------------------------------------
    EBITDA(1 & 2)                $774,057        $424,108           83%
    -------------------------------------------------------------------------
    Net Earnings,
     continuing operations       $413,703        $188,945          119%
    -------------------------------------------------------------------------
    Net Earnings                 $118,736        $127,472         -6.9%
    -------------------------------------------------------------------------
    EPS, continuing
     operations(3)                $0.014          $0.007           100%
    -------------------------------------------------------------------------
    EPS(3)                        $0.004          $0.005           -20%
    -------------------------------------------------------------------------



          Three months ended June 30:
    -------------------------------------------------------------------------
                                                                 Increase/
    Description                    2008            2007          decrease
    -------------------------------------------------------------------------
    Revenue(1)                 $3.18 million   $3.48 million      -8.6%
    -------------------------------------------------------------------------
    Gross Income(1)            $1.93 million   $2.47 million       -22%
    -------------------------------------------------------------------------
    EBITDA(1)                    $(52,254)       $263,215         -120%
    -------------------------------------------------------------------------
    Net Earnings,
     continuing operations       $163,438        $210,912          -22%
    -------------------------------------------------------------------------
    Net Earnings                  $85,771        $202,109          -58%
    -------------------------------------------------------------------------
    EPS, continuing
     operations(3)                $0.006          $0.007           -14%
    -------------------------------------------------------------------------
    EPS(3)                        $0.003          $0.008           -63%
    -------------------------------------------------------------------------

    (1) Continuing Operations
    (2) Excludes one time severance of $169,217
    (3) Earnings Per Share (basic and diluted)

    Following are the highlights of the 2008 fiscal year:

    -   We achieved record revenues, gross income and EBITDA for the year
        ended June 30, 2008, which represented a 35%, 25% and 83% increase,
        respectively, from the same period last year.

    -   We experienced a decline in revenues, gross income and EBITDA in Q4
        2008 compared to Q4 2007 of 8.6%, 22% and 120%, respectively, as a
        result of reduced U.S. revenues from $1,076,888 to $596,627 due to
        postponed marketing programs as our U.S. clients monitor the economic
        crisis.

    -   We achieved a 7.5% increase in gross revenue from continuing Canadian
        operations in Q4 2008 compared to Q4 2007, from $2,404,555 to
        $2,584,669 in 2008 as a result of increased spending in online
        marketing by our Canadian clients.

    -   We achieved a 155% increase in gross income from our top five
        Canadian accounts for the year ended June 30, 2008 as a result of
        expanding our services through our integrated offering.

    -   We formed an exclusive strategic relationship with AdFarm, a leading
        North American agency specializing in Agriculture marketing. This has
        provided Rare Method a stronger footprint in Agricultural marketing
        sector and has created a relationship that will provide significant
        opportunities throughout North America.

    -   We experienced a decline in net earnings for the year ended June 30,
        2008 compared to the year ended June 30, 2007 as a result of losses
        from discontinued operations and a one-time severance payment to the
        former President. This was partially offset by the recognition of
        future income tax recovery recorded in Q4.

    -   As a result of the slowdown in the U.S. economy, we have adjusted our
        staffing levels to control costs. As well, we have stepped up
        business development with specific focus on partnership opportunities
        with other leading agencies to provide our digital services to their
        clients and to marketing organizations looking to agencies who can
        provide integrated solutions and digital advertising to make their
        marketing more accountable and effective.
    

    Our focus in fiscal 2009 will be to continue to expand our relationships
with our core accounts and partners and to win significant opportunities with
larger firms as they embrace integrated marketing and digital advertising.
    All of the major research firms expect double-digit growth in North
American online media year-over-year. Forrester Research estimates that online
advertising in north America will growth from 25 billion in 2008 to
$59 billion by 2012 with a recession, or $61 billion if there is no
recession(*). We have benefited from this trend and have aligned our growth
strategy to build on this momentum.

    
    (*) Forrester Research - US Interactive Marketing forecast, 2007 to
        2012 - October 10th, 2007
    

    About Rare Method Interactive Corp.

    Rare Method (TSX-V: RAM) is a leading integrated agency that designs,
builds, implements and optimizes strategic marketing programs that acquire,
convert and retain customers. Rare Method offers a full range of marketing
services including marketing strategies, creative development, technology
development, media planning and management, implementation of interactive
marketing programs and campaign analytics, reporting and optimization. Rare
Method has over 80 employees in Calgary, Alberta and Salt Lake City, Utah and
was recognized as Alberta's 2nd fastest growing company by Alberta Venture
magazine in 2007, and in 2008 was recognized as one of the top 25 employers in
Canada by the Queen's School of Business, Queen's Centre for Business
Venturing and Hewitt Associates and as one of Canada's fastest growing
companies by Profit magazine. www.raremethod.com

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    %SEDAR: 00014945E




For further information:

For further information: Rare Method Investor & Media inquiries: Mr. Tom
Short, President, Rare Method, (403) 543-4500 or investors@raremethod.com; Mr.
Sam Grier, Principle, Stirling Investor Relations, (403) 229-2115 or
sam@stirlingir.com

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Rare Method Interactive Corp.

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