/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
TORONTO, Oct. 27 /CNW/ - ZIPLOCAL INC. (ZIP - TSX Venture Exchange)
("ZipLocal" or the "Company"), a leader in local online search technology,
today released its financial results for the three and twelve month periods
ended June 30, 2008.
During the fourth quarter, we launched our US site, continued to enhance
site infrastructure and speed to drive increased traffic, and continued
efforts to lower expenses.
The Company is starting to see the results of the prior restructuring
combined with continued and aggressive efforts to decrease expenses. These
initiatives have resulted in a decrease in cash burn by approximately $404,000
and in an improvement of Adjusted EBITDA by $480,000 for the three month
period ended June 30, 2008 as compared to the three month period ended
March 31, 2008.
Net revenues for the three month period ended June 30, 2008 were
$837,000, representing a decrease of $474,000 (or 36%) from $1,311,000 in the
same quarter of fiscal 2007. Net revenues for the year ended June 30, 2008
were $3,969,000 representing a decrease of $1,772,000 (or 31%) from $5,741,000
for the year ended June 30, 2007.
Net loss from continuing operations for the three months ended
June 30, 2008 was $1,698,000 (or $0.02 per share), compared to a loss of
$1,572,000 (or $0.03 per share) for the same period in fiscal 2007. Net loss
from continuing operations for the year ended June 30, 2008 was $6,302,000 (or
$0.09 per share), compared to a loss of $6,310,000 (or $0.14 per share) for
the year ended June 30, 2007. Included in the net loss from continuing
operations for the three month ended June 30, 2008 were non-cash charges of
$881,000 relating to write-down of barter credits available ($181,000),
impairment of finite life intangible assets ($211,000) and impairment of
The complete financial results and management's discussion and analysis
of the results for the three and twelve months ended June 30, 2008 are
available through the System of Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com. All currencies are stated in Canadian dollars.
ZipLocal uses Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adding back to net loss
interest, amortization, stock-based compensation, impairment of finite life
intangible assets, impairment of goodwill and write-down of barter credits
available. Adjusted EBITDA is provided to investors to supplement the results
of operations reported in accordance with GAAP. Management believes Adjusted
EBITDA is useful to help investors analyze the operating trends of the
business and to assess the relative underlying performance of the businesses
by excluding non-cash charges such as amortization, depreciation and
stock-based compensation, as well as non-operating charges for interest,
investors can evaluate the Company's operations and can compare its results on
a more consistent basis.
About ZipLocal Inc.
ZipLocal operates a Canadian online directory that provides a rich,
user-defined local search experience. ZipLocal provides relevant search
results from Canadian and US businesses with maps and functionality for users
to review, rate and tag business listings. ZipLocal is focused on creating the
most comprehensive and engaging search experience at the neighbourhood and
This news release may contain forward-looking statements based on
management's current projections, beliefs and opinions at the date of this
news release. Actual results could differ materially from those anticipated in
the statements due to risks and uncertainties, which affect the Company's
business and operations. Reference should be made to the Company's continuous
disclosure documents filed from time to time with Canadian securities
regulatory authorities for a detailed description of such risks and
uncertainties. The Company takes no responsibility to update forward-looking
statements if circumstances or management's projections, beliefs or opinions
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Stephen McDonald, ZipLocal Inc., (416)