Kaboose Reports Second Quarter Revenue Increases 132% to $8.14 Million with EBITDA of $1.10 Million

    TORONTO, Aug. 1 /CNW/ - Kaboose Inc. (TSX:KAB), the largest independent
family-focused online media company in North America, today announced
financial results for its second quarter and six months ended June 30, 2007.

    Financial Highlights for the Quarter

    -   Record second quarter revenue of $8.14 million, compared to
        $3.51 million in the same quarter last year, an increase of 132%;

    -   EBITDA (earnings before interest, taxes, depreciation, amortization
        and stock-based compensation) was $1.10 million, compared to a loss
        of $750,000 in the same quarter last year;

    -   Net loss for the quarter was $55,000 or nil cents per share, compared
        to a loss of $1.08 million or $0.02 per share in the second quarter
        of fiscal 2006; and

    -   Balance sheet as at June 30, 2007 remains very strong with cash and
        restricted cash totaling $25.65 million and no debt.

    Financial Highlights for the Six Months

    -   Revenue for the first six months of fiscal 2007 was $14.72 million,
        compared to $5.85 million in the same period last year, an increase
        of 152%;

    -   For the six-month period ended June 30, 2007, EBITDA (earnings before
        interest, taxes, depreciation, amortization and stock-based
        compensation) was $1.24 million, compared to a loss of $1.50 million
        in the same period last year; and

    -   Net loss for the first half of fiscal 2007 was $146,000 or nil cents
        per share, compared to a loss of $1.97 million or $0.03 per share in
        the same period of fiscal 2006.

    "We are very pleased with the results from this quarter," said
Jason DeZwirek, Chairman and Chief Executive Officer of Kaboose. "We continue
to see increased demand from both new and existing advertisers and expect
strong year-over-year growth in revenue and EBITDA throughout the remainder of
2007 and into 2008."
    Mr. DeZwirek continued, "The additions of both Mike Fogarty as Chief
Revenue Officer and Dottie Enrico as Senior Vice President of Content and
Programming have already had a significant impact on our company. We are
actively working on new tools, applications and content initiatives that we
intend to deploy over the coming quarters. These initiatives will provide our
users and advertisers with a unique suite of products that we believe cannot
be offered by our competitors. We are as excited as ever about the
opportunities that lie ahead for our company and our shareholders."

    Operational Highlights for the Quarter

    -   Advertising clients whose campaigns ran in the quarter included
        Albertsons, American Express, Best Buy, Disney, Fidelity Investments,
        GlaxoSmithKline, Hewlett-Packard, Johnson & Johnson, Kellogg's,
        Kimberly-Clark, Kraft, McDonald's, Merck, Microsoft, News
        Corporation, Nestlé, Nintendo, Nissan, Procter & Gamble, SC Johnson,
        Sony, Staples, Target, Time-Warner, Toyota, Unilever and Wal-Mart;

    -   In April, Kaboose announced the acceleration of the operational
        integration of its BabyZone acquisition;

    -   On April 10, 2007, Kaboose appointed Dottie Enrico, a twenty-year
        editorial veteran who most recently served as Editorial Director at
        Pearson's Family Education Network, as Senior Vice President of
        Content and Programming;

    -   On May 1, 2007, Kaboose named Michael Fogarty, a 12-year veteran with
        AOL, as Chief Revenue Officer. Fogarty oversees all of Kaboose's
        revenue generating activities, including national and local
        advertising sales, commerce, lead generation, affiliate marketing and
        business development;

    -   In June 2007, Kaboose strengthened its team with the addition of two
        new members with significant online media experience from Meredith,
        iVillage and Publishers Clearing House;

    -   On June 4, 2007, Kaboose ranked in the top 20 of PROFIT Magazine's
        19th annual PROFIT 100 ranking of Canada's Fastest-Growing Companies.
        The PROFIT 100 is Canada's largest annual celebration of
        entrepreneurial achievement; and

    -   Also in June 2007, Kaboose hit the top 20 of the top 300 Small-Cap
        Companies, was 22nd overall in one-year return and number one in the
        Internet & Software Services industry (one of the top-five best
        industries) on Canadian Business' Investor 500 list, which ranks
        Canada's 500 largest publicly traded companies.

    Financial Summary
                                            Three-month          Six-month
                                               period              period
                                           ended June 30       ended June 30
    (in $ millions)                       2007      2006      2007      2006
    Revenue                              $8.14     $3.51    $14.72     $5.85
    EBITDA(*)                            $1.10    $(0.75)    $1.24    $(1.50)
    Net loss                            $(0.06)   $(1.08)   $(0.15)   $(1.97)
    (*) Reconciliation of EBITDA (earnings before interest, taxes,
        depreciation, amortization and share-based compensation), as reported
        above, to generally accepted accounting principles (GAAP). Loss for
        the three-month and six-month periods ended June 30, 2007 and 2006
        are shown below (all numbers expressed in millions).

                                            Three-month          Six-month
                                               period              period
                                           ended June 30       ended June 30
    (in $ millions)                       2007      2006      2007      2006
    Net loss                            $(0.06)   $(1.08)   $(0.15)   $(1.97)
      Amortization                       $0.95     $0.25     $1.80     $0.35
      Interest income (net)             $(0.13)   $(0.09)   $(0.34)   $(0.16)
      Tax credits                            -         -    $(0.42)        -
      Stock-based compensation           $0.45     $0.13     $0.68     $0.24
      Provision for income taxes        $(0.11)    $0.04    $(0.33)    $0.04
    EBITDA(*)                            $1.10    $(0.75)    $1.24    $(1.50)
    (*) Kaboose presents EBITDA information as a supplemental figure because
        management believes it provides useful information regarding
        operating performance. EBITDA is not a recognized measure under
        Canadian GAAP, does not have standardized meaning, and is unlikely to
        be comparable to similar measures used by other companies.
        Accordingly, investors are cautioned that EBITDA should not be
        construed as an alternative to net earnings or loss determined in
        accordance with GAAP as an indicator of the financial performance of
        the Company or as a measure of the Company's liquidity and cash

    About Kaboose Inc.

    Kaboose is the largest independent, family-focused online media company
in North America and one of the top-five most visited family destinations
online. From pregnancy to parenting, birthday parties to scrapbooking, and
entertainment to education, Kaboose has the content and applications to help
parents plan and share their family life. Kaboose owns some of the world's
leading online properties targeting families, including BabyZone.com,
ParentZone.com, Kaboose.com, AmazingMoms.com, TwoPeasInABucket.com,
BubbleShare.com; BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose
trades on the Toronto Stock Exchange under the symbol "KAB."

    This document may contain forward-looking statements, relating to Kaboose
Inc.'s operations or to the environment in which it operates, which are based
on Kaboose Inc.'s operations, estimates, forecasts and projections. These
statements are not guarantees of future performance and involve risks and
uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.'s
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in these forward-looking statements.
Consequently, readers should not place any undue reliance on such
forward-looking statements. Kaboose Inc. disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

For further information:

For further information: Jonathan Pollack, Chief Financial Officer for
Kaboose Inc. at TEL: (416) 593-3000 ext.290, FAX: (416) 593-4658

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