OutdoorPartner Media announces fourth quarter revenue increase of 1,538% to US$2.02 million and first profitable quarter with adjusted EBITDA of US$214,736

    TORONTO, March 19 /CNW/ - OutdoorPartner Media Corporation (TSX-V: OPX -
News) ("OutdoorPartner" or the "Company"), a leading alternative out-of-home
media provider, today announced financial results for its fourth quarter and
fiscal year ended December 31, 2006.

    Financial Highlights

    -   Revenue for the three months ended December 31, 2006 totaled
        US$2,019,854, an increase of US$1,896,529 or 1,538% from the
        three months ended December 31, 2005; and

    -   The Company reported its first profitable quarter. Adjusted EBITDA(*)
        (defined as earnings before interest, taxes, depreciation,
        amortization, stock-based compensation, acquisition related costs and
        severance) was US$214,736 and net income was US$21,368 for the three
        months ended December 31, 2006.

    -   Revenue for the twelve months ended December 31, 2006 increased 592%
        to US$2,967,522 from US$429,141 for the year ended December 31, 2004

    "We are very pleased with the 2006 results," said Mark Brodkin, President
and Chief Executive Officer of OutdoorPartner. "Our business continues to
experience significant growth and the Company delivered its first profitable
quarter in the fourth quarter. With the acquisition of Prime Point Media, we
are poised to benefit from the increased popularity of alternative out-of-home
media in the U.S. marketplace."

    Operational Highlights for 2006

    -   The Company successfully increased its average campaign size and
        built on its base of Fortune 500 clients by adding new clients in new
        sectors. Advertising clients in fiscal 2006 included: Amstel Light;
        Anheuser-Busch; AOL; AT&T; Bacardi; Bank of America; Bristol-Myers
        Squibb; Bud Light; Captain Morgan; Chase Bank; Courvoisier; HBO;
        Heineken; Kaletra; Kawasaki; Malibu Rum; Miller; Mountain Dew;
        Nissan; Pepsi; Random House; REMAX; Showtime; Smirnoff; Stella
        Artois; Telemundo; and the U.S. Navy Reserve;

    -   In March, the Company commenced trading on the TSX Venture exchange
        following the completion of an amalgamation between Cutwater Capital
        Corporation ("Cutwater") and OutdoorPartner Media Canada Inc.
        ("OutdoorPartner Canada");

    -   A PartnerBin pilot program was launched in St. Louis in February
        2006, the 8th location in the United States to enroll in a PartnerBin

    -   A PartnerBin pilot program was launched in New York City's 125th
        Business Improvement District in July 2006, the 9th location in the
        United States to enroll in a PartnerBin program;

    -   In August, the Company completed the acquisition of Prime Point Media
        ("Prime Point" or "PPM");

    -   The Company executed its first Bluetooth advertising campaign
        beginning in November 2006. The campaign used PPM's Bluetooth
        technology product, PrimeCasting, to deliver the client's 2-minute
        video to the mobile phones of passersby; over 16.5% of respondents
        chose to download the full video;

    -   The Company signed its first campaign greater than US$1.0 million in
        November 2006. The campaign was executed in almost 5,000 locations
        across 49 states; and

    -   The Company provided Out-of-Home advertising to over 140 companies in
        more than 200 cities in the United States.

    "Fiscal 2006 was a great year for OutdooorPartner Media," stated Brodkin.
"We became a public company, secured several new locations for PartnerBins,
completed a major acquisition, successfully sold and executed our first-ever
Bluetooth campaign, secured our first campaign worth over US$1.0 million and
continued to build our reputation as a first-class media company with major
advertisers and agencies."

    Subsequent Events

    -   Due to success on the Bluetooth front and other client wins, the
        Company has already contracted for advertising campaigns representing
        2007 revenue of US$3.5 million;

    -   The Company secured a contract to install PartnerBins in the City of
        Atlanta, the 10th location in the United States to enroll in a
        PartnerBin program;

    -   The Company commenced local/regional payphone advertising operations
        in New York City, Los Angeles and Miami in February 2007; and

    -   PPM has signed three contracts for Bluetooth advertising campaigns to
        be executed in 2007.

    "OutdoorPartner continues to gain momentum in 2007 and is well on the way
to a record year," Brodkin added. "Integration of the acquisition has been
seamless and Prime Point has performed well in excess of our expectations. We
have already contracted over US$3.5 million in revenue for 2007 during what is
typically the slowest season for out-of-home buying."
    "Of the US$3.5 million of revenue contracted for the year, US$3.0 million
is scheduled to be recognized in the first half of the year; this is extremely
encouraging as, historically, a significantly higher portion of revenue is
earned in the second half of the year," Brodkin continued. "The Company is
positioned to have its best ever Q1 and Q2 based on written contracts and
recognized revenue. With the addition of a local/regional sales team, several
new contracts for our Bluetooth offering and our new PartnerBin program in
Atlanta, we look forward to a great year in which we will reach many more
significant milestones."

    Financial Highlights
    OutdoorPartner Media Corporation
    Audited Annual Consolidated Statements of Operations
    (US dollars)

                                                      Twelve months ended
                                                   December 31,  December 31,
                                                       2006          2005

    Revenues                                       $ 2,967,522   $   429,141
    Direct Costs                                     1,245,788       123,285
    Gross Profit                                     1,721,734       305,856

    Sales, General & Administrative expenses         2,646,766       990,224

    EBITDA(*)                                      $  (925,032)  $  (684,368)

    Amortization                                       100,735        63,072

    Interest expense/(income)                          (74,425)      (17,650)

    Net loss                                       $  (951,342)  $  (729,790)

    Financial Highlights
    OutdoorPartner Media Corporation
    Reconciliation of Adjusted EBITDA(*)
     to Net income
    (US dollars)

                                                          Three months ended
                                                           December 31, 2006

    Adjusted EBITDA(*)                                           $   214,736

    Severance                                                        126,501
    Transaction related costs                                         33,622


    EBITDA(*)                                                    $    54,613


    Amortization                                                      31,665
    Interest                                                          (4,204)
    Other                                                              5,784
    Net income                                                   $    21,368

    (*) EBITDA is not an earnings measure recognized by GAAP in Canada or the
        United States and does not have a standardized meaning prescribed by
        GAAP. It should not be considered a substitute for income (loss) from
        operations, net income (loss), cash flows from operating activities
        or other statement of operations or cash flow statement data prepared
        in accordance with GAAP. Management considers EBITDA to be a
        meaningful supplement to operating and net income as a performance
        measure that facilitates period-to-period operating comparisons and
        allows the Company to compare its operating results with its
        competitors. In addition, management believes that such a measure is
        commonly used by securities analysts, investors and other interested
        parties to evaluate a company's financial performance. The Company's
        method of calculating EBITDA may differ from the methods used by
        other companies and accordingly, EBITDA references contained herein
        may not be comparable to similar measures presented by other

    About OutdoorPartner:

    OutdoorPartner is a market leader in the emergent alternative out-of-home
media segment. The Company operates two out-of-home media networks: a
PartnerBin network and a payphone kiosk advertising network. PartnerBins -
litter/recycling receptacles that facilitate advertising - are currently
located in nine U.S. communities, including: New York City, St. Louis and
Baltimore. OutdoorPartner's payphone kiosk advertising division, Prime Point
Media, offers highly-targeted advertising plus PrimeCasting - a Bluetooth
broadcast solution - on a network of over 700,000 payphone kiosks located in
all of the top 50 designated market areas. More information may be found by
visiting www.outdoorpartner.com or www.primepointmedia.com.

    This news release contains forward-looking statements regarding, among
other things, OutdoorPartner's beliefs, plans, objectives, strategies,
estimates, intentions and expectations. Such statements are based on a number
of assumptions which may prove to be incorrect, involve certain risks and
uncertainties that are difficult to predict and, accordingly, are not
guarantees of future performance. The future results of the Company or
developments may differ materially from those expressed in the forward-looking
statements contained in this news release, due to, among other factors,
OutdoorPartner's lack of operating profits, its dependence on key personnel,
general economic conditions and other external events that may impact on
customers' advertising spending, competition from other out-of-home
advertisers and other media and government regulation seeking to limit or
restrict OutdoorPartner's activities. More detailed information about these
and other factors is included in OutdoorPartner's 2005 Annual Information Form
and other documents published or filed by, or on behalf of, OutdoorPartner
from time to time with the Canadian securities regulatory authorities. Other
than as required by law, OutdoorPartner undertakes no obligation to publicly
update or revise any such forward-looking statements or information, whether
as a result of new information, future events or otherwise.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00021410E

For further information:

For further information: Mark Brodkin, CEO, OutdoorPartner Media
Corporation, 296 Richmond Street West, Suite 305, Toronto, Ontario M5V 1X2,
Canada, T: (416) 602-1602, F: (416) 352-5070, www.outdoorpartner.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890