TORONTO, Aug. 29, 2017 (GLOBE NEWSWIRE) -- YANGAROO Inc. (TSX-V:YOO) (OTC:YOOIF), the leading secure digital media management and distribution company, today announced its results for the second quarter ended June 30, 2017.
Revenue for Q2 was $2,026,731, 75% higher than the same period in 2016 and 16% higher than Q1 2017, with normalized EBITDA of $301,952. This is the third consecutive profitable quarter reported by the Company.
Advertising led the way with record quarterly revenue of $1,224,767, up 107% over the same period in 2016 and 20% over the previous quarter. The increase in revenue is primarily the result of significant new clients using YANGAROO for the first time and continued growth by existing customers.
The Entertainment Division’s Q2 revenue was $801,964, up 42% over 2016 and up 12% over the previous quarter, as a result of several Award show renewals signed during the period. The Awards show renewals signed in the quarter are normal course of business, but unusual in their timing and are not indicative of significant annual growth in this area of the business.
In the quarter ended June 30, 2017, the Company’s normalized EBITDA was $301,952 compared to normalized EBITDA loss of $326,480 for the same period in 2016. The Company has continued to manage expenses during the quarter while continuing to drive growth primarily focused on the Advertising Division.
“Consecutive quarterly sales records and the third consecutive EBITDA positive quarter reflect a trend towards continued sales growth and sustained profitability,” said Gary Moss, President and CEO of YANGAROO. “With fixed costs in check and gross margins consistently in excess of 90%, we are starting to see the organization scale as expected. This bodes well as we work towards our stated market share goal of 10% of the North American advertising distribution market.”
Total operating expense for the quarter ended June 30, 2017 was $1,785,706 (including non-cash items totaling $110k), 17% higher than the previous year, primarily due to higher headcount of customer and technical support staff to support the Advertising growth. The income from operations was $241,025, improving from a loss of $370,505 in Q2 2016. Excluding the impact of non-cash and non-operating costs, the second quarter of 2017 had positive normalized EBITDA of $301,952.
Summary of operating results for the periods ended June 30th:
| $CDN | Six Months | Second Quarter | ||||
| 2017 | 2016 | 2017 | 2016 | |||
| Revenue | 3,766,797 | 2,504,767 | 2,026,731 | 1,157,618 | ||
| EBITDA (loss) | 292,354 | (662,445) | 218,165 | (355,278) | ||
| Normalized EBITDA (loss) | 422,465 | (528,852) | 301,952 | (326,480) | ||
| Gain (loss) for the period | 204,446 | (746,204) | 171,597 | (398,100) | ||
| Basic income (loss) per share | 0.003 | (0.013) | 0.003 | (0.007) | ||
| Diluted income (loss) per share | 0.003 | (0.013) | 0.003 | (0.007) | ||
Please note, all currency in this press release is denoted in Canadian dollars.
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
About YANGAROO:
YANGAROO is a company dedicated to digital media management. YANGAROO’s patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America’s major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF. For further information, please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.