TIO RETURNS CORE BUSINESS TO ORGANIC GROWTH AND COMPLETES STRATEGIC ACQUISITION
VANCOUVER, March 27, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal second quarter 2014 financial results for the period ended January 31, 2014.
Quarterly financial & business highlights
- On January 1, 2014, the Company acquired 100% of the outstanding shares of Globex Financial Services, Inc. (Globex), and its operating business Global Express Money Orders, Inc. (Global Express). This quarter's results include one month of revenues attributable to Globex (Jan 2014).
- Revenue for the fiscal second quarter increased sequentially by 21% to $9,985,193, from $8,261,332 in the first fiscal quarter of 2014 due to the Globex acquisition and a return to organic growth in TIO's core transaction business. In January 2014 alone, revenue was $4.4 million, an increase of 31% over Jan 2013.
- In January 2014 alone, the Company processed more than 2.9M transactions worth more than US$404 million.
- Excluding Globex, the Company's core transaction business returned to organic growth in the quarter with transactions for the quarter growing by 9.7% sequentially and by 4.4% on a year-over-year basis.
- Gross margin increased to 29.2% from 22.1%.in the prior year due to higher transaction margins in TIO's core business and the addition of Globex's higher margin revenues. In January 2014 alone, gross margin % was 33% a 10% improvement from the previous year.
- The Company added 3,405 locations inorganically via the Globex acquisition and 1,093 locations organically, finishing the quarter with more than 65,000 location end-points active and available for processing.
- The Company finished the quarter with $32,866,910 in cash and cash equivalents and restricted cash (including cash held to fulfill payment obligations). The significant changes in the balance sheet were due to the consolidation of Globex.
- During the quarter, the TIO branded wallet users grew 38% sequentially and surpassed the 160k member mark.
|Three months ended Jan. 31||Six months ended Jan. 31|
|Revenue||$ 9,985,193||$ 10,169,980||$ 18,246,525||$ 20,651,193|
|Gross Profit||$ 2,913,820||$ 2,250,236||$ 4,869,704||$ 4,569,773|
|Adjusted EBITDA*||$ 179,000||$ 174,000||$ 251,000||$ 460,000|
|Operating Cash Flow before foreign exchange||$ 116,953||$ 88,585||$ 86,829||$ 255,502|
|Net Income (loss)||$ (172,744)||$ 16,288||$ (378,165)||$ 46,868|
| January 31,
| October 31,
|Revenue||$ 9,985,193||$ 8,261,332|
|Gross Profit||$ 2,913,820||$ 1,955,884|
|Adjusted EBITDA*||$ 179,000||$ 72,000|
|Operating Cash Flow before foreign exchange||$ 116,953||$ (30,124)|
|Net Income (loss)||$ (172,744)||$ (205,421)|
|*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 are very excited about the return to growth in our core business and the successful completion of our accretive acquisition of Globex," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "With over 3,000 retail locations in the U.S processing millions of walk-up payment transactions every month, Globex has significantly increased our size and scale. We are encouraged about our prospects for further growth in the coming quarters as we leverage the combined geographic, customer and product strengths of TIO and Globex."
A conference call to discuss the results will be held on Thursday March 27, 2014 at 1:30 p.m. EST. To participate please dial, 416-644-3426 in Toronto or Toll free, 800-731-5319 and request the TIO Networks Conference.
TIO NETWORKS CORP.
TIO is a cloud based multi-channel payment processor focused on serving up bill payments for the largest wireless, utility, cable and rent bill issuers in North America. With more than 65,000 physical location endpoints to its bill payment processing network, TIO symbolizes fast, convenient and secure access to high quality bill payment services. Please visit www.tionetworks.com
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 excluding stock based compensation expense, and 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:
Derek Lai - Acting CFO - TIO Networks
Tel: 604.298.4636, Ext. 269
Dave Fore, Hayden IR