MONTREAL, April 29 /CNW Telbec/ - IMPORTANT: Kangaroo Media's Financial
Statements and Management Discussion and Analysis for Q4 and Fiscal 2008 can
be accessed via the CNW link that follows
Kangaroo Media Inc. (TSX: KTV-V) announced today results for its 4th
quarter and Fiscal 2008.
- Q4 2008 revenues of $1.1 million up 60.2% over Q4 2007
- Activations per event up 24.2% in NASCAR and 43.5% in F1
- Gross margin improved by $0.1 million to ($1.0 million)
- Net loss of $12.5 million, or $(0.35) per share, compared to
$7.8 million, or $(0.22) per share in 2007
Fiscal 2008 Highlights
- Revenues totaled $5.8 million compared to $14.3 last year
- Total revenues from rental and activations up 54.0% over 2008
- Activations in NASCAR up an average of 21.5% per race and an average of
75.3% in F1
- Gross margin down by $4.1 million to ($3.1 million)
- Net loss totaled $24.1 million, or $(0.68) per share, compared to
$16.0 million, or $(0.51) per share in Fiscal 2007
- Liquidity and capital resources amount to $9.4 million
For the fourth quarter ended December 31, 2008, revenue increased by
60.2% to reach $1.1 million compared to $716,000 for corresponding quarter in
2007. Revenue from the rental and activation of KTV units increased 46.2% over
the previous year fourth quarter and reached $895,000 in Q4 2008 as a result
of higher volume in both F1 and NASCAR. Service revenue in Q4 2008 increased
97.1% to $205,000 compared to Q4 2007 due to higher professional services in
NASCAR. The gross margin for Q4 2008 improved by $113,000, to ($1.0 million),
compared to gross margin of ($1.1 million) in Q4 2007. The negative gross
margin is the result of revenues in F1 and NFL not yet being sufficient to
cover associated direct operating expenses.
For Fiscal 2008, operating revenues totaled $5.8 million, compared to
$14.3 million for 2007 with the decline mainly attributable to a decline in
the sale of units and accessories sold in NASCAR. Revenues from the rental and
activation of KTV units increased 54.0% to $4.3 million, up from $2.8 million
for the year 2007 as a result of the increase in volume in F1 while services
revenues totaled $847,000, compared to $942,000 for the same period of 2007
due to a decrease in professional services to NASCAR. Gross margin for 2008
decreased by $4.1 million to ($3.1 million), compared to gross margin of $1.0
million in 2007. The higher 2007 gross margin was the result of the volume of
KTV units sold to Sprint and the negative gross margin from the F1 and NFL
As a result of market conditions and the decline in its share price, the
Company recorded a $7.8 million non-cash asset impairment charge in its
As at December 31, 2008, the Company's cash, cash equivalents and
short-term investments totaled $9.4 million. However, as a result of new
credit agreement signed by the Company on April 29, 2009, $575,000 of that
amount will have to be placed in escrow and represent restricted cash.
"In Q4 of the past fiscal year the Company restructured and streamlined
its operations to become more efficient and reduce expenses. This allowed us
to reduce our operating expenses appreciably and use capital more effectively.
Concurrently, we made some key business development choices to build a
sustainable revenue generation base. Our recently announced partnership with
Merchandising Media and agreement with PGA TOUR are examples of ways in which
we will build our revenues and gross margins going forward. And from a
technology perspective, our relationship with Front Row will ensure our fan
experience offering remains the best in the business," commented Robert
Mimeault, President of Kangaroo Media. "Over the past months, we have made
some significant progress in building efficiency and greater focus into our
performance, now we are looking at driving sustainable and profitable growth
and we are optimistic on that front," he concluded.
An analyst conference call on the Q4 and Fiscal 2008 results will take
place on April 30 2009 at 8:30 A.M (Eastern). To participate or listen to the
conference call, dial 1 800 590 1817 approximately 10 minutes prior to the
start of the call. A replay of the conference call will be available until end
of day May 14, 2009, commencing at 10:30 A.M. the day of the call. The instant
replay number is 1-877-289-8525, passcode 21304485 #.
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 may contain 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 Media. A number of factors 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 Kangaroo
Media 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.
For further information:
For further information: Rick Clements, Chief Financial Officer, (450)