TIO Reports 2015 Q4 and Annual Financial Results


VANCOUVER, Nov. 24, 2015 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal fourth quarter and full fiscal year 2015 financial results for the period ended July 31, 2015.

Annual and Quarterly financial & business highlights (all figures in CA dollars)

  • Annual Adjusted EBITDA increased by 145% on a year over year (YoY) basis to $3.76M. Q4 Adjusted EBITDA increased sequentially on a quarter over quarter (QoQ) basis by 35% to $1.35M.
  • Annual revenue increased by 23% to 62.5M YoY. Q4 revenues increased QoQ by 2.8% to $13.95M.
  • Annual gross profit increased by 69% to $25,306,782. Q4 gross profit increased by 30% to $7,341,841 as compared to Q4 last year. This includes a cost of sales adjustment that improved gross profit by $733k effected in Q4.
  • Annual gross margin improved to 40% from 29% YoY. Quarterly gross margin increased to 53% from 29% as compared to Q4 last year. Gross margins increased sequentially QoQ from 47% to 53%.
  • Cashflow from operations for the year improved by 228% to $2.98M YoY.
  • During fiscal 2015, the Company processed approximately 54M transactions worth about $6.27B, representing 79.5% YoY transaction growth. In Q4, the company processed 13.8M transactions worth $1.56B representing a 14.2% increase in transactions over the same period last year.
  • The Company Implemented a cost reduction program from April through July resulting in annual savings of $1.48M.
  • During fiscal Q4, the Company announced the acquisition of Softgate Systems Inc., a leading provider of bill payment processing and services to national and regional utility, wireless, and cable bill issuers in North America. Once the acquisition is complete, it is expected that TIO's pro-forma revenues and EBITDA to be greater than $100M and $10M respectively.
  • During fiscal 2015, the Company invested and expensed a record $4.5 million in R&D initiatives to support and drive growth
  • At year end TIO's direct-to-consumer TIO Wallet membership grew to 1.1 million members.
  • Ended the period with $37,983,819 in cash and cash equivalents and restricted cash (including cash held to fulfill bill payment obligations) and no long-term debt


Three months ended July 31

Year ended July 31






$      13,951,435

$     19,697,679

$    62,511,484

$      50,870,293

Gross Profit

$        7,341,841

$       5,648,732

$    25,306,782

$      14,969,743

Adjusted EBITDA*

$        1,349,532

$          891,203

$      3,759,718

$        1,532,113

Operating Cash Flow before non-cash working capital items

$           770,350

$          738,413

$      2,981,262

$           908,713

Net Income (loss)

$           142,379

$            20,650

$           40,842

$         (600,203)

*Adjusted EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization, stock-based compensation, and non-recurring transaction and restructuring expenses.

"We achieved record revenue and EBITDA," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "Fiscal 2015 was a year marked by the successful execution of M&A, shared services, cost improvements and R&D initiatives, strengthening TIO's prospects for further growth.  We look forward to closing our acquisition of Softgate systems in early 2016 and remain steadfast and focused on organic revenue growth, EBITDA margin expansion and accretive acquisitions."

A conference call to discuss the results will be held Tuesday, November 24, 2014 at 2:00 pm EST, 11:00am PST. To participate in the call please dial 416-847-6330 in Toronto or Toll free, 1-866-530--1533 and request the TIO Conference.

To learn more, visit: www.TIOnetworks.com

About TIO Networks

TIO is a multi-channel cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America.  TIO symbolizes fast, convenient and secure bill payment. Visit: www.TIOnetworks.com. Join the conversation: www.twitter.com/TIOnetworks or like us: http://www.facebook.com/TIOnetworks

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made.  Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected.  TIO Networks Corp. does not intend and does not assume any obligation to update these forward-looking statements.

* EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization.  Adjusted EBITDA is EBITDA plus stock-based compensation, non-recurring transaction and restructuring expenses.  EBITDA is not a defined term under IFRS nor does it have a standard, agreed upon meaning.  Accordingly, the Company's EBITDA may not be directly comparable to EBITDA reported by other issuers.  Management had determined EBITDA is a useful supplemental measure in evaluating the Company's performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures.  This non-IFRS measure is intended to provide additional information on the Company's performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE TIO Networks Corp.

For further information: Richard Cheung - CFO - TIO Networks, Tel: 604.298.4636, Ext. 265, Email: richard.cheung@tionetworks.com; John Lewis - Bus Dev - TIO networks, Tel: 416-523-7086, Email: jrlewis@tionetworks.com


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