Rare Method reports 2009 year-end results

CALGARY, Oct. 28 /CNW/ - Rare Method today announced fourth quarter & full year highlights for the year ended June 30, 2009. The following tables provide a comparison of Q4 2009 to Q4 2008 and the full year ended June 30, 2009 to June 30, 2008:

    
    Three months ended June 30:
    -------------------------------------------------------------------------
    Description                    2009            2008     Increase/decrease
    -------------------------------------------------------------------------
    Revenue                    $2.27 million   $3.18 million          -28.6%
    -------------------------------------------------------------------------
    Gross Income               $1.30 million   $1.93 million            -32%
    -------------------------------------------------------------------------
    EBITDA                         $(146,689)       $(52,254)          -280%
    -------------------------------------------------------------------------
    Net Earnings, continuing
     operations                  $(1,706,036)       $163,438               -
    -------------------------------------------------------------------------
    Comprehensive Income (Loss)  $(1,706,036)        $85,771               -
    -------------------------------------------------------------------------
    EPS, continuing
     operations(1)                   $(0.006)         $0.006               -
    -------------------------------------------------------------------------
    EPS(1)                           $(0.006)         $0.003               -
    -------------------------------------------------------------------------


    Year ended June 30:
    -------------------------------------------------------------------------
    Description                    2009            2008     Increase/decrease
    -------------------------------------------------------------------------
    Revenue                   $10.11 million  $12.69 million            -20%
    -------------------------------------------------------------------------
    Gross Income               $6.77 million   $8.80 million            -23%
    -------------------------------------------------------------------------
    EBITDA                         $(236,032)       $774,057           -130%
    -------------------------------------------------------------------------
    Net Earnings, continuing
     operations                  $(2,481,455)       $413,703               -
    -------------------------------------------------------------------------
    Comprehensive Income (Loss)  $(2,481,455)       $118,736               -
    -------------------------------------------------------------------------
    EPS, continuing
     operations(1)                   $(0.086)         $0.014               -
    -------------------------------------------------------------------------
    EPS(1)                           $(0.086)         $0.004               -
    -------------------------------------------------------------------------

    (1) Earnings Per Share (basic and diluted)

        Following are the highlights of the 2009 fiscal year:

    -   Revenues from continuing operations for the year ended June 30, 2009
        declined $2,583,286 from 2008 results. The U.S. operation continued
        to feel the full effect of the recession as revenue for the year
        ended June 30, 2009 declined 24.6% from $2,698,193 in fiscal 2008 to
        $2,033,676. The Canadian operation also saw a $1,918,769 or 19.2%
        decline in revenue for the fiscal year ended June 30, 2009 versus
        2008. The decrease in revenue is primarily due to the recessionary
        environment resulting in reduced marketing budgets and fewer new
        business opportunities.

    -   At year-end, we recorded a goodwill impairment charge of $1,460,403
        in light of the significant down turn in the economy and the ensuing
        effect on our business. This was in addition to an impairment charge
        of $370,733 in relation to the U.S. operation that was recorded in
        the second quarter of fiscal year 2009, resulting in a comprehensive
        loss of $2,481,455 for the year. These goodwill write-downs are a
        one-time non-cash charge.

    -   The percentage of gross income from the Company's top ten clients in
        the fiscal year 2009 amounted to 68% versus 69% in 2008. Two of these
        clients represented greater than 10% of consolidated gross income in
        both fiscal years. As per our stated goals, the company continues to
        focus on larger accounts and providing comprehensive integrated and
        interactive marketing services

    -   The Company's net cash position as at June 30, 2009 amounted to
        $929,935 compared to $998,425 as at June 30, 2008. As of the date of
        this MD&A, the Company's net cash position is $465,463. We believe,
        with the adjustments to date and further reorganization plans, that
        we will be able to navigate the economic uncertainties that we all
        currently face. We also believe, at this current time, we have
        sufficient working capital and cash to manage operations through
        fiscal 2010.

    -   As a result of the economic slow down, we continue to adjust our cost
        structure to better position ourselves for future success in an
        uncertain environment. Salary and wages decreased by $829,928 or
        13.1% from $6,292,170 in fiscal 2008 to $5,470,242 in fiscal 2009.
        General and Administration costs were also reduced by 13.3% from
        1,589,570 in fiscal 2008 to $1,378,531 in fiscal 2009. Ongoing
        adjustments will be made to bring cost into appropriate alignment
        with revenues.

    -   We continue to make strategic investments in current clients and
        marketing and business development activities to ensure that when the
        market moves to recovery, we are in a position to activate marketing
        programs and remain top of mind as thought and creative leaders with
        desired clients.
    

About Rare Method Interactive Corp.

Rare Method (TSX-V: RAM) is a leading integrated agency that leverages technology to make marketing more effective and accountable. Rare Method offers a full range of marketing services including marketing strategies, creative, technology development, media planning & management, campaign analytics, reporting & optimization. Rare Method has 47 employees in Calgary, Alberta and Salt Lake City, Utah and was recognized in 2008 & 2009 as one of the top 50 employers in Canada by the Queen's School of Business, Queen's Centre for Business Venturing and Hewitt Associates as well as one of Canada's fastest growing companies by Profit magazine.

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.

SOURCE Rare Method Interactive Corp.

For further information: For further information: Rare Method Investor & Media inquiries: Mr. Tom Short, President, Rare Method, (403) 543-4500 or investors@raremethod.com

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