Rare Method reports Q1 2010 results

CALGARY, Nov. 30 /CNW/ - Rare Method Interactive Corp. ("Rare Method") (TSX Venture Exchange, Tier 1 listed under symbol RAM) announces that it has filed its first quarter financial statements for the period ended September 30, 2009 and accompanying Management's Discussion & Analysis. Copies of the filed documents may be obtained via SEDAR at www.sedar.com.

    
    The following tables provide a comparison of Q1 2010 to Q1 2009 results:

    Three-months ended September 30:
    -------------------------------------------------------------------------
    Description                  2010         2009         Increase/decrease
    -------------------------------------------------------------------------
    Revenue                     $1.5 million  $3.16 million       -53%
    -------------------------------------------------------------------------
    Gross Income                $1.0 million  $2.1 million        -53%
    -------------------------------------------------------------------------
    EBITDA                      $(205,451)    160,583            -228%
    -------------------------------------------------------------------------
    Comprehensive Income (Loss) $(279,338)    $5260                 -
    -------------------------------------------------------------------------
    EPS(1)                      $(0.01)       -                     -
    -------------------------------------------------------------------------
    (1) Earnings Per Share (basic and diluted)

    Following are highlights of the three-months ended September 30th 2009:

    -   The recession continues to effect client marketing decisions and
        budgets as most organizations have taken a conservative position in
        this environment. As a result, revenues for the three-month ended
        September 30th 2009 declined $1,662,349 from 2008 results. Canadian
        operations experienced the largest reduction in revenue with a
        decline of 58% from $2,585,185 in fiscal 2008 to $1,085,571.

    -   US operations are beginning to see the benefits of operational
        adjustments made early in the year and have posted two back-to-back
        profitable quarters. We have also seen an increase in opportunities
        in the US, which we believe is a forward indicator of renewed
        confidence in the economy and the loosening up of marketing budgets.

    -   The Company's net cash position as at September 30th 2009 was
        $198,496 compared to $961,674 as at June 30, 2009. As of the date of
        this press release, the Company's net cash position is $721,730. We
        believe that we have sufficient working capital and cash to manage
        operations through calendar 2010.

    -   In response to the decline in revenues, we have continued to make
        adjustments to our operations to more closely match revenue to costs.
        The area were we captured the greatest cost saving was in salaries
        which was reduced by 41% in Q1 2010 as compared to Q1 2009. In the
        process of our reorganization we have retained our core talent to
        ensure we can continue to service our key accounts and new
        opportunities as the market recovers. We expect the cost savings from
        the staff adjustments in Canada to be more significant in future
        quarters as the current period reflects severance payments.

    -   With the significant adjustments made to date, combined with an
        increase in new opportunities in recent months, we believe that we
        are well positioned for 2010 when the full effect of our cost savings
        will be realized.
    

About Rare Method Interactive Corp.

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Rare Method (TSX-V: RAM) is a leading integrated agency that leverages technology to make marketing more effective and accountable. Rare Method offers a full range of marketing services including marketing strategies, creative, technology development, media planning & management, campaign analytics, reporting & optimization. Rare Method has 32 employees in Calgary, Alberta and Salt Lake City, Utah and was recognized in 2008 & 2009 as one of the top 50 employers in Canada by the Queen's School of Business, Queen's Centre for Business Venturing and Hewitt Associates as well as one of Canada's fastest growing companies by Profit magazine.

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 Rare Method Interactive Corp.

For further information: For further information: Rare Method Investor & Media inquiries: Mr. Tom Short, President, Rare Method, (403) 543-4500 or investors@raremethod.com

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Rare Method Interactive Corp.

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