LOWER CUSTOMER CONCENTRATION COUPLED WITH STRATEGIC ACCRETIVE ACQUISITION POSITIONS TIO FOR SUCCESS IN 2014
VANCOUVER, Nov. 29, 2013 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal fourth quarter and full fiscal year 2013 financial results for the period ended July 31, 2013.
Annual and Quarterly financial & business highlights
- Revenue for the year ended July 31, 2013 was $40,456,886, compared $42,247,601 for the year ended July 31, 2012, however total transaction revenue outside of TIO's largest bill payment partner increased 6% in Q4FY13 and increased 13% for the fiscal year 2013 compared to the same period one year ago.
- Entered into a binding agreement to acquire Globex Financial Services, Inc.("Globex"), a leader in bill payments and other walk-up financial services. Transaction is on track to close in calendar Q1 2014. The transaction is expected to be strategically and financially accretive.
- Launched new biller relationship with U.S. mobile carrier AIO Wireless.
- Reduced customer concentration to the lowest levels in last 10 years. TIO's largest bill payment partner accounted for 31% in Q4FY13 and 29% of total margin in the final month of the quarter.
- Revenue from mobile/web payments business unit increased 36% to approximately $396,000 in Q4FY13 from approximately $292,000 a year ago for the quarter, with 9 web and mobile programs active. Revenue from mobile/web payments increased 50% in 2013.
- During the quarter, TIO surpassed the 1.3 million transactions processed milestone across all TIO Wallet member programs since inception in Jan 2011 worth approx $200M in bill payments.
- Before the end of the quarter the Company implemented a comprehensive expense reduction initiative equal to $1,257,000 per annum that had been 60% implemented as of the end of the quarter and has been fully implemented as of today.
- Incurred $323,000 in one-time related costs associated with the Globex acquisition and a related restructuring in Q4FY13. Adjusted EBITDA excluding non-recurring transaction and restructuring expenses was $(122,000).
|Three months ended July 31||Year ended July 31|
|Revenue||$ 9,849,841||$ 10,708,667||$ 40,456,886||$ 42,247,601|
|Adjusted EBITDA*||$ (122,000)||$ 299,000||$ 384,000||$ 1,370,000|
|Operating Cash Flow||$ 1,668,878||$ 1,370,708||$ 1,888,638||$ 1,712,831|
|Net Income (loss)**||$ (623,521)||$ 57,027||$ (721,993)||$ 283,839|
|*EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization, and stock-based compensation. Adjusted EBITDA is EBITDA excluding non-recurring transaction and restructuring expenses|
|** Net loss of $623,521 for Q4 2013 included $323,000 of one-time expenses associated with headcount reductions and due diligence expenses of Globex|
The Company finished the quarter with $4,624,988 in cash and cash equivalents and restricted cash (including cash held to fulfill bill payment obligations) and no long term debt. This amount does not include a $3 million commitment from Core Innovation Capital for common stock purchase at a $0.35 per share upon closing of the Globex transaction.
"We remain very excited about our pending accretive acquisition of Globex," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "This acquisition represents a transformative opportunity for TIO. Not only will it greatly increase the size and diversity of our customer base, but it should have a very positive impact on margins and profitability. While we faced continuing decline in our business with our current largest biller partner, we were pleased to see continued growth in our revenue from our other partners as well as strong growth in our mobile and web payments business. While we await the close of the Globex acquisition, we will continue to actively seek opportunities to grow all lines of our business."
A conference call to discuss the results will be held on Friday November 29, 2013 at 1:30 p.m. EST. To participate please dial, (416) 644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO Networks Conference.
TIO NETWORKS CORP.
TIO is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America. With more than 59,000 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, and stock-based compensation. Adjusted EBITDA is EBITDA excluding 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
Email: [email protected]
Brett Maas, Hayden IR
Email: [email protected]