TIO Reports Record Q1, FY2017 Financial Results

7th CONSECUTIVE QUARTER OF RECORD ADJUSTED EBITDA

VANCOUVER, Dec. 15, 2016 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced Q1 FY2017 financial results for the period ended October 31, 2016.

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

  • Adjusted EBITDA* for Q1 increased 78.9% year over year ("YoY") to $3.6M from $2M and by 16.3% sequentially from Q4, 2016.
  • Revenue increased 58.5% to $24.22M from Q1 2016
  • Gross profit increased 50.8% to $11.83M from Q1 2016.  
  • Gross margin improved to 48.8% from 47.4% quarter over quarter ("QoQ"). 
  • Processed 20.7M transactions worth $2.3B USD, representing 45.8% YoY transaction growth.  
  • Generated $3.7M in positive cash flow from operations, an increase of 60.5% QoQ and an increase of 86.9% YoY. 
  • Net Income increased by 16.6% YoY to $1.64M.  Impact to Net Income included: 1- One-time M&A related and non-operational costs in the amount of $0.61M and 2- Depreciation and Amortization of $0.71M due to M&A related purchase price accounting for all acquisitions
  • Invested and expensed $1.8M in R&D initiatives to drive growth
  • TIO's direct-to-consumer membership grew to 1.3M members.
  • The company finished the period with $78.28M in cash and cash equivalents and restricted cash (including cash held to fulfil bill payment obligations). 
  • Net cash for use in operations increased to $14.3M from $11.8M QoQ.

 

Q1, 2017 comparison to Q1, 2016

Three months ended October 31

In thousands, expressed in CA dollars

2016

2015

Revenue

$     24,218

$   15,277

Gross Profit

$     11,829

$     7,844

Net Income

$       1,637

$     1,404

Adjusted EBITDA*

$       3,595

$     2,010

Operating Cash Flow before non-cash working
capital items

$       3,685

$     1,972


Q1, 2017 comparison to Q4, 2016

Quarter ended

In thousands, expressed in CA dollars

October 31, 2016

      July 31, 2016

Revenue

$     24,218

$     25,020

Gross Profit

$     11,829

$     11,848

Net Income

$       1,637

$        (478)

Adjusted EBITDA*

$       3,595

$       3,092

Operating Cash Flow before non-cash
working capital items

$       3,685

$       2,296

 

"We are very pleased to announce that we've recorded our 7th consecutive record quarter of Adjusted EBITDA and 'best ever' performance to date in terms of cash-flow generated from operations," said Hamed Shahbazi, Chairman and CEO of TIO Networks." These financial results demonstrate that TIO's unique business model is not only democratizing consumer bill payment access in the non-bank channel for millions of consumers but also illustrates continued bottom line expansion.  TIO management remains focused on driving top and bottom line growth both organically and inorganically."

A conference call to discuss the results will be held today at 11am PST, 2pm EST.

To participate in the call please dial 1-647-794-1827 in Toronto or Toll free, 1-800-347-6311 and request the TIO Conference, conference ID 6149392.

About TIO Networks

TIO Networks 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 collect 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.

Visit: www.TIONetworks.com.

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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.  Adjusted EBITDA is EBITDA plus stock-based compensation, non-recurring transaction, restructuring expenses and non-operational items.  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; John Lewis - Bus Dev - TIO networks, Tel: 416.523.7086, Email: jrlewis@tionetworks.com

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