CALGARY, Aug. 28, 2015 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), today announced its second quarter (Q2) financial results for the three and six month periods ended June 30, 2015.
"The second quarter represents an inflection point, culminating with the closing of the Valuation Vision transaction and the filing of the Business Acquisition Report (BAR)," said David King, President and CEO of Zaio Corporation. "While we continue to make robust investments in our data and technology, we are pleased to announce our first significant revenue from our U.S. operations since implementing our go to market strategy."
"In terms of market acceptance of these new valuation solutions, BPOMerge has exceeded performance expectations with our previously announced national lender," stated Shane Copeland, CEO of Valuation Vision, Inc., a subsidiary of Zaio Corporation. "As a result, we are pleased to announce that this client has opened orders to all 50 states, with BPOMerge displacing traditional valuation products in many cases."
"In fulfillment of our strategy to expand our data and technology distribution channels, we are continuing to move forward with the previously announced AXIS Appraisal Management acquisition under potentially modified terms" continued King. "As the final piece falls into place, Zaio will be able to offer full spectrum data and valuation solutions to address the approximately $7 billion valuation market."
- Total revenue was $472,926 for the three months ended June 30, 2015, compared to nil for the same period in 2014. Total revenue was $537,406 for the six months ended June 30, 2015, compared to nil for the same period in 2014.
- As at June 30, 2015, the Company's cash position was $1,583,311, compared to a cash position of $4,260,593 on December 31, 2014. Subsequent to June 30, more than $840,000 of proceeds were realized from warrant exercises by current shareholders. Those proceeds are not included in the June 30 cash position.
- Total expenses were $2,634,438 for the three month ended June 30, 2015, compared to $1,897,196 for the same period in 2014. Total expenses were $4,351,640 for the six month ended June 30, 2015, compared to $3,247,700 for the same period in 2014. While a significant percentage of the expenses represent active R&D to develop Zaio data, technology solutions and products, it also includes consolidation of Valuation Vision expenses and acquisition related costs.
- Net loss and comprehensive loss of $2,443,085 ($0.01 per share) for the three months ended June 30, 2015, compared to loss of $1,861,815 ($0.03 per share) for the same period in 2014. Net loss and comprehensive loss of $5,727,807 ($0.03 per share) for the six months ended June 30, 2015, compared to loss of $3,181,890 ($0.05 per share) for the same period in 2014. Net loss and comprehensive loss for the quarter and six months were also influenced by higher than usual expenses indicated earlier.
- During the quarter:
- The Company announced a multi-year national supplier agreement with one of the largest secondary market lenders in the U.S.
- Zaio announced that BPOMerge™ is now available via FNC's AppraisalPort®, one of the largest valuation product marketplaces serving the U.S. banking industry.
- The Company closed the acquisition of Valuation Vision.
- Zaio appointed Ron Love as the Company's Chief Financial Officer
- The Company announced record pro forma revenue for the first half of 2015 for Zaio, Axis, and Valuation Vision combined, demonstrating continued adoption of the pro forma company's products and services.
About Zaio Corporation
Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the company's patented database of proactively maintained residential property evaluations prepared by licensed appraisers across the United States. Visit the company online at zaio.com.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy and of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended the U.S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act
Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.
Forward-looking information in this press release, includes, among other things, information relating to: projected or profoma revenues which assumes the closing of the Valuation Vision transaction and the Axis transaction which events have not occurred and anticipated growth in customers and sales.
These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the accuracy of the revenues reported by Valuation Vision and Axis; (ii) the ability of the Company to realize such revenues in the event the Axis transaction is closed and the ability of Zaio to effectively integrate the combined entities; (iii) the ability of the Company to close the Axis transaction.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Zaio does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Zaio's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Zaio Corporation
For further information: David King, President & CEO, Zaio Corporation, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, email@example.com