TIO reports Q2 FY2017 financial results

8th Consecutive Quarter of Record Adjusted EBITDA Performance

VANCOUVER, March 30, 2017 /CNW/ - TIO NETWORKS CORP. (TSX-V: TNC, the "Company" or "TIO") today announced second quarter financial results for the period ended January 31, 2017.

Second quarter financial & business highlights (all figures in Canadian dollars except where noted):

  • Adjusted EBITDA* for Q2 increased 56% year over year ("YoY") to $4.2M from $2.7M and by 16% sequentially from Q1, 2017.
  • Revenue increased 49.6% to $24.5M from Q2 2016.
  • Gross profit increased 50.6% to $12M from Q2 2016.
  • Processed 20.4M transactions worth $2.1B USD, or 45.4% YoY transaction growth.
  • Net Income increased by 27% YoY to $2.1M.
  • Invested and expensed $1.7M in research and development initiatives to drive growth.
  • TIO's direct-to-consumer membership grew to 1.3M members.
  • Finished the period with $83.73M in cash and cash equivalents and restricted cash (including cash held to fulfil bill payment obligations). 
  • Net cash for use in operations increased to $2.58M from $1.85M YoY.

Q2, 2017 comparison to Q2, 2016

Three months ended Jan. 31

Six months ended Jan. 31


2017

2016

2017

2016

Revenue

$           24,537

$           16,397

$         48,755

$           31,674

Gross Profit

$           12,064

$             8,008

$         23,893

$           15,852

Adjusted EBITDA*

$             4,160

$             2,653

$           7,755

$             4,663

Operating Cash Flow before non-
cash working capital items

$             2,576

$             1,845

$           6,261

$             3,817

Net Income

$             2,110

$             1,661

$           3,747

$             3,065

 

Q2, 2017 sequential comparison
to Q1, 2017

Quarter ended


 

Jan. 31, 2017

Oct. 31, 2016

Revenue

$           24,537

$           24,218

Gross Profit

$           12,064

$           11,829

Adjusted EBITDA*

$             4,160

$             3,595

Operating Cash Flow before non-
cash working capital items

$             2,576

$             3,685

Net Income

$             2,110

$             1,637

 

"Our business performed very well during fiscal Q2, 2017 and notched its 8th consecutive quarter of record adjusted EBITDA performance. This is an achievement that we're very proud of," said Hamed Shahbazi, Chairman and CEO of TIO.

There will be no conference call to discuss the Q2 results.

About TIO

TIO is a cloud-based multi-channel bill payment processing and receivables management company, serving the largest telecom, wireless, cable, and utility bill issuers in North America. TIO integrates with the back office of billing systems to accept, validate, and accept payments outside of the traditional bank channel, via self-service kiosk, retail walk-in, mobile, and web solutions. TIO symbolizes fast, convenient, and secure access to expedited bill payment services.

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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.

Forward-Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. TIO does not intend and does not assume any obligation to update these forward-looking statements.

* EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is EBITDA plus stock-based compensation, non-recurring transaction and restructuring expenses. EBITDA is not a defined term under IFRS nor does it have a standard, agreed upon meaning. Accordingly, TIO's EBITDA may not be directly comparable to EBITDA reported by other issuers. TIO management had determined EBITDA is a useful supplemental measure in evaluating TIO's performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures. This non-IFRS measure is intended to provide additional information on TIO's performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE TIO Networks Corp.

For further information: Richard Cheung - CFO, Tel: 604.298.4636, Ext. 265, Email: richard.cheung@tio.com; John Lewis - Business Development, Tel: 416-523-7086, Email: jrlewis@tio.com

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