MONTREAL, Nov. 27 /CNW Telbec/ - Kangaroo Media Inc. (TSX: KTV.V) announced today results for its 3rd quarter of 2009.
- Revenues totaled $2.1 million compared to $2.2 million in Q3 last year.
- Gross margin improved and totaled $1.5 million compared to $(17,000),
in Q3 of 2008.
- Quarterly operating expenses were reduced to $1.3 million, down 55%
from $2.9 million in the corresponding quarter a year earlier.
- Net earnings totaled $264,000 compared to loss of $(3.4 million) in Q3
2008; on a per share basis, earnings of $0.01 versus a loss of ($0.10)
in Q3 2008.
- The Company's liquidity and short-term investments position stood at to
$4.5 million at the end of the quarter.
For the quarter ended September 30, 2009, operating revenues totaled $2,146,000, down slightly from $2,249,000 in Q3 2008. The 4.6% decrease is attributable mainly to F1, where a reduction in non-cash sponsorship revenue and lower B2C and B2B rentals were recorded under the terms of Kangaroo's outsourced marketing agreement.
The gross margin for Q3 2009 improved, moving from a negative ($17,000) in previous year Q3 to $1,527,000 for the most recent third quarter. This improvement is due mainly to higher margin revenues in NASCAR and in golf, cost reductions in F1 and a reduction of production and manufacturing costs.
The Fiscal 2009 third quarter performance resulted in net earnings of $264,000. In the previous year third quarter, the Company had recorded a net loss of $(3,374,000).
"Operationally and financially, we are satisfied with our third quarter of Fiscal 2009. As a result of actions taken in late 2008 and early 2009 to cut costs and redefine the business plan and strategy, we have become a more efficient and focused organization; our operating expenses are lower and our gross margin has improved. That said, as we continue our sales and business development efforts, we are experiencing revenue challenges in some of our sports properties such as in F1 and in golf owing to the economic environment that remains difficult," explained Robert Mimeault, Kangaroo' s President and Chief Executive Officer.
On November 6, 2009, Game Day Entertainment, LLC and Kangaroo announced that they had entered into a definitive arrangement agreement for the acquisition of Kangaroo by Game Day. A special meeting of Kangaroo's shareholders will be held on December 21, 2009 in Montreal to approve the arrangement, among other things. Additional details regarding the terms of the arrangement and the special meeting are set out in the information circular which has been mailed by Kangaroo to all of its securityholders and is available on SEDAR and the Kangaroo website.
About Kangaroo Media Inc.
Kangaroo Media Inc. is a market leader in enhancing the in-venue sports fan experience. The company develops and commercializes hand-held wireless audiovisual multi-functional entertainment systems that enable users to expand and tailor their on-site viewing experience of sporting events. Kangaroo Media's technology delivers real-time video, audio and data content to each fan's hand-held Kangaroo TV device. It gives fans the ability to create their own tailor-made live-action sporting event on-site. Kangaroo Media, headquartered near Montreal, Canada, is listed on the TSX Venture Exchange as KTV.V. For more information, visit www.kangaroo.tv.
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Kangaroo. A number of factors such as the benefit of the Agreement, the leveraging of the intellectual property it creates and the increased intellectual property protection it provides could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and unless required by law Kangaroo does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither the 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 KANGAROO MEDIA INC.
For further information: For further information: Rick Clements, CFO, Kangaroo Media, (450) 595-2004, firstname.lastname@example.org