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
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.
For further information: Rare Method Investor & Media inquiries: Mr. Tom Short, President, Rare Method, (403) 543-4500 or [email protected]
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