TIO Reports Q4 and Fiscal 2014 Financial Results

ACCRETIVE ACQUISITIONS AND RAPID GROWTH IN WIRELESS PAYMENTS DRIVES GROWTH; TIO IS STRONGLY POSITIONED FOR FISCAL 2015

VANCOUVER, Nov. 25, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced fiscal fourth quarter and full fiscal year 2014 financial results for the period ended July 31, 2014.

Annual and Quarterly financial & business highlights

• Revenue for the year ended July 31, 2014 was $50,870,293, compared to $40,456,886 for the year ended July 31, 2013. Revenue for the fiscal fourth quarter doubled to $19,697,678 from $9,849,841 in the same period a year ago and increased by 52% sequentially from $12,926,089 in the fiscal third quarter of 2014.
• Gross profit for the year ended July 31, 2014 was $14,969,743, a 67.5% increase or $6,032,072 as compared to the gross profit of $8,937,671 for the same period last year. Gross margin for the year ended July 31, 2014 was 29.4% compared to 22.1% for the same period last year.
• During Fiscal Q4, the company processed Approx 12M transactions worth Approx. $1.3B representing 36% growth sequentially and 250% growth year over year. In Q4, the company's average daily processing volume was more than $14M, an increase of 392% as compared to one year ago. The Company's primary organic growth engine was its consumer bill payment program for major wireless carriers.
• Completed the acquisition of Globex Financial Services, Inc. ("Globex"), a leader in bill payments and other walk-up financial services, on January 1, 2014.
• The Company finished the year with $29,949,509 in cash and cash equivalents (including restricted cash and cash held to fulfill bill payment obligations) and no long-term debt.
• During the quarter, TIO's direct-to-consumer TIO Wallet membership base grew 18% sequentially to over 260,000 members.
• Subsequent to the quarter, acquired the assets of San Francisco, CA based VeriFone Commerce Solutions (chargesmart.com), a leading provider of online bill payment services for US consumers.

	Three months ended July 31		Year ended July 31
	2014	2013	2014	2013
Revenue	$     19,697,678	$   9,849,841	$    50,870,293	$  40,456,886
Adjusted EBITDA*	$          892,000	$    (445,000)	$      1,533,000	$         12,000
Cash Flow from Operating activities**	$          438,257	$    (412,300)	$         908,713	$     (187,859)
Net Income (loss)***	$            20,655	$    (623,521)	$       (600,203)	$     (721,993)

*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
** Before changes in non-cash working capital items
*** 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

"We had a truly superb quarter and year driven by significant organic and inorganic growth," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "Fiscal 2014 was a year marked by the successful execution of large scale and meaningful initiatives that have positioned TIO for further growth.  Going forward, we are confident about our growth prospects in fiscal 2015, which will  include a full years contribution of both Globex and ChargeSmart revenue - We have never been stronger.  We continue to focus on opportunistic acquisition and growth opportunities."

A conference call to discuss the results will be held Tuesday, November 25, 2014 at 1:30 pm EST, 10:30am PST. To participate in the call please dial 416-644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO 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 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, 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.

Richard Cheung - CFO - TIO Networks, Tel: [phone], Ext. 265, Email: [email protected]; David Fore, Hayden - Investor Relations, Tel: [phone], Email: [email protected]; Ryan Tessier, Yulu - Media Relations, Tel: [phone], Email: [email protected]

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