TIO Reports Q3 Fiscal 2015 Financial Results

M&A Synergies, Cost Control and Growth in Gross Profit Drive Net Profitability

VANCOUVER, June 29, 2015 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal third quarter 2015 financial results for the period ended April 30, 2015.

Quarterly and 9 month financial & business highlights

  • Quarterly Adjusted EBITDA increased by 147% YoY (year over year) and 88% sequentially QoQ (quarter over quarter) to $1M
  • Revenue increased 5% YoY to $13,568,328
  • Quarterly Gross profit increased 42% YoY and 7% QoQ to $6,317,961
  • Quarterly Gross margin increased YoY to 46.6% from 34.4%
  • Quarterly Transactions increased 149% YoY to 13.3 million worth $1.59 billion
  • Quarterly Operating Cash Flow increased 67% YoY to $495,000
  • The Company recorded its largest quarterly investment in R&D ever at more than $1.2M (all fully expensed)
  • Finished the period with $35,841,426 in cash and cash equivalents and restricted cash (including cash held to fulfill bill payment obligations) and no long-term debt

Three months ended April 30

Nine months ended April 30


2015

2014

2015

2014

Revenue

$

13,568,328

$

12,926,089

$

48,560,049

$

31,172,614

Gross Profit

$

6,317,961

$

4,451,307

$

17,964,941

$

9,321,011

Adjusted EBITDA*

$

1,001,000

$

405,000

$

2,410,000

$

641,000

Operating Cash Flow before non-cash working capital items

$

495,625

$

297,581

$

2,073,198

$

470,456

Net Income (loss)

$

24,056

$

(242,693)

$

(101,537)

$

(620,858)


Quarter ended


April 30, 2015

January 31, 2015

Revenue

$

13,568,328

$

15,307,508

Gross Profit

$

6,317,961

$

5,905,878

Adjusted EBITDA*

$

1,001,000

$

533,000

Operating Cash Flow before non-cash working capital items

$

495,625

$

632,037

Net Income (loss)

$

24,056

$

(252,230)

*Adjusted EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization, stock-based compensation, and non-recurring transaction and restructuring expenses

"We are executing on our M&A synergies and related cost reduction strategies and its paying off",  said Hamed Shahbazi , Chairman and CEO of TIO Networks. "We experienced record performance in adjusted EBITDA, the strongest in the company's history. All our acquired entities including TIO's core business recorded meaningful improvements in profitability this past quarter.  We made strong progress with our platform consolidation and shared services initiatives. When fully implemented these initiatives will  make the Company a financially strong competitor in the receivables management and bill payment processing industries."

A conference call to discuss the results will be held on Monday June 29, 2015 at 1:30 p.m. EST. To participate please dial, 416-260-0113 in Toronto or Toll free, 800-524-8950 and request the TIO Networks Conference.

TIO NETWORKS CORP.

TIO is a cloud based multi-channel payment processor focused on serving up bill payments for the largest wireless, utility, cable and rent bill issuers in North America.  With more than 69,000 physical location endpoints and 24 mobile and web programs to its bill payment processing network, TIO symbolizes fast, convenient and secure access to high quality bill payment services.  Please visit www.tionetworks.com

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.

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 Networks Corp. 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, and stock-based compensation.  Adjusted EBITDA  is EBITDA excluding non-recurring transaction and restructuring expenses.  EBITDA is not a defined term under IFRS nor does it have a standard, agreed upon meaning.  Accordingly, the Company's EBITDA may not be directly comparable to EBITDA reported by other issuers.  Management had determined EBITDA is a useful supplemental measure in evaluating the Company'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 the Company'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 - TIO Networks, Tel: 604.298.4636, Ext. 265, Email: richard.cheung@tionetworks.com; David Fore, Hayden - Investor Relations, Tel: 206-395-2711, Email: dave@haydenir.com; Ryan Tessier, Yulu - Media Relations, Tel: 604-558-1656, Email: ryan@yulupr.com

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