MONTREAL, Nov. 27, 2019 /CNW/ -- Engagement Labs Inc. (TSXV: EL) released results for its third quarter ended September 30, 2019 and provides Financial advisor update. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
Strategic Review Process Update
As disclosed in a Press Release on August 2, 2019, the Company engaged a New York-based investment bank to work with the Board of Directors to consider its strategic alternatives which may include taking on a strategic investor, the sale of the Company and/or some or all of its assets. The process is continuing. As indicated previously, there is no assurance that any material decisions will be made as a consequence of this process.
Third Quarter Financial Highlights
- Total company revenue was $1,042,909 for Q3 2019, which all were TotalSocial® revenue, representing a 26% increase in TotalSocial revenue vs Q3 2018 ($829,739), and a 18% increase in Total company revenue vs Q3 2018 ($883,342).
- Gross margin increased to 52% in Q3 2019, from 40% in Q3 2018.
- The operating expenses have increased to $1,906,986 in Q3 2019, up 30% or $434,654 from $1,472,332 in Q3 2018.
- Net loss before income taxes has increased to -$1,367,046 in Q3 2019, up 1% or -$17,494 from -$1,349,552 in Q3 2018.
- EBITDA(1) loss of -$1,203,021 for Q3 2019, representing an increase of $218,672, from -$984,349 for Q3 2018.
- Non-GAAP Adjusted EBITDA(1) loss of -$919,345 for Q3 2019, representing an increase of $169,413 from -$749,932 for Q3 2018.
- Basic and diluted income per share was ($0.01) for Q3 2019 compared to ($0.01) for Q3 2018.
- As at September 30, 2019, the Company had cash of $1,128,549, compared to $906,455 as of December 31, 2018.
EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA calculation. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and Adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
"We are very happy with our growth of TotalSocial revenue, and we continue to bring in new Fortune 500 companies and new sectors. This combined with our focus on cost control continue to move us in the right direction as a Company," said Ed Keller, CEO.
About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
Disclaimer in regard to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
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.
SOURCE Engagement Labs