TIO reports record Q1, 2016 financial results


VANCOUVER, Dec. 17, 2015 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced first quarter 2016 financial results for the period ended October 31, 2015.

First Quarter financial & business highlights (all figures in CA dollars):

  • Adjusted EBITDA increased 129.5% on a Year over Year (YoY) basis to $2.01M from $876k and increased sequentially on a quarter over quarter (QoQ) basis by 48.9% from Q4 2015
  • Revenues increased QoQ by 9.5% to $15.3M
  • Gross profit increased 32.1% to $7.84M on a YoY basis and 15.9% QoQ
  • Gross margin increased by 21% to 51% on a YoY basis and 2% sequentially QoQ
  • Cash Flow from Operating activities increased by $1.03M or 108.6% YoY to $1.97m
  • Processed approx 14.2M transactions worth approx. $1.7B representing 7.3% YoY transaction growth and 3.1% growth sequentially
  • TIO's direct-to-consumer membership base increased to 1,144,057
  • Finished the period with $34,632,296 in cash and cash equivalents (including restricted cash and cash held to fulfill bill payment obligations) and no long-term debt

Three months ended October 31




$    15,276,822

$    19,684,213

Adjusted EBITDA**

$      2,010,000

$         876,000

Cash Flow from Operations

$      1,972,172

$         945,537

Net Income

$      1,403,597

$         126,637


Q1, 2016 sequential comparison to Q4, 2015

Quarter ended

October, 31 2015

      July 31,  2015


$    15,276,822

$     13,951,435

Gross Profit*

$      7,843,955

$       6,769,464

Adjusted EBITDA**

$      2,010,000

$       1,350,000

Cash flow from operations

$      1,972,172

$          770,350

Net Income

$      1,403,597

$          142,379


* Restated certain marketing costs from COS to Sales and Marketing as noted in Q1 2016 MD&A

** EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization.  Adjusted EBITDA is EBITDA plus stock-based compensation and one-time M&A costs less one-time gross profit earned from kiosks. 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.

"We are very pleased to deliver the best quarterly net profit, EBITDA and gross profit metrics in the Company's lifetime" said Hamed Shahbazi, Chairman and CEO of TIO Networks.  "This quarter we continued to build on the successes of the prior fiscal year as TIO and its subsidiaries all achieved improvements in growth and profitability.  As we move into calendar 2016, we look forward to closing our acquisition of Softgate Systems which will enhance profitability and further establish TIO as one of the leading players in the US consumer bill payment processing and receivables management marketplace."

A conference call to discuss the results will be held Thursday December 17, 2015 at 2:00 pm EST, 11:00am PST. To participate in the call please dial 416-847-6330 in Toronto or Toll free, 1-866-530-1553 and request the TIO Conference.

To learn more, visit: www.TIOnetworks.com

About TIO Networks

TIO is a multi-channel cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America.   TIO symbolizes fast, convenient and secure bill payment. Visit: www.TIOnetworks.com. Join the conversation: www.twitter.com/TIOnetworks or like us:  http://www.facebook.com/TIOnetworks

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.

SOURCE TIO Networks Corp.

For further information: Brix Media Co. - Ryan Tessier, ryan@brixmedia.co, 604-215-2749; Richard Cheung - CFO - TIO Networks, Tel: 604.298.4636, Ext. 265, Email: richard.cheung@tionetworks.com; John Lewis - Bus Dev - TIO networks, Tel: 416.523.7086, Email: jrlewis@tionetworks.com


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