TORONTO, ONTARIO — (Marketwire) — 05/11/12 — Cyberplex Inc. (TSX: CX) a leader in performance-based online marketing and technology solutions today announced its financial results for the first quarter ended March 31, 2012. Total revenue for the quarter was $16.3 million, an increase from the $14.6 million recorded in the same quarter of 2011, and adjusted EBITDA loss for the quarter was approximately $341,000 as compared to income of $150,000 in the same period of 2011. The net loss for the quarter was $3.4 million as compared to a net loss of $3.6 million in the same year ago period.
Results for the First Quarter ended March 31, 2012
On April 24, 2012, the Company announced the sale of Tsavo Media as part of a series of transactions valued at approximately $33 million (the “Transaction”) in which the Company received cash proceeds of approximately $7.3 million and reduced its debt obligations from approximately $25.6 million to approximately $150,000. As a result of the Transaction, the Company-s financial position has been improved significantly.
“The sale of Tsavo has resulted in much more stable and focused organization” said Geoffrey Rotstein, Chief Executive Officer of Cyberplex. “From both a financial and a strategic perspective, Cyberplex is now able to deliver quality digital marketing solutions to our clients without further distractions and has the financial resources required to fund sustainable growth in this exciting digital environment.”
Non-IFRS Financial Measures
This press release includes a discussion of “Adjusted EBITDA,” which is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net loss from operations before; (a) depreciation of property and equipment and amortization of intangible assets; (b) stock-based compensation expense, (c) restructuring and acquisition costs, (d) Impairments of goodwill and intangible assets and other items net. Management uses Adjusted EBITDA as a measure of the Company-s operating performance because it provides information related to the Company-s ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in accordance with the Company-s consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company-s consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies- non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company-s non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
Normal Course Issuer Bid
The Company also today announced that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by the Company of its previously announced intention to make a normal course issuer bid, commencing May 14, 2012 and expiring May 13, 2013. Under the bid, the board of directors has authorized the purchase of up to 11,913,232 of its common shares, representing approximately 10% of the “public float” of common shares. Daily purchases will be limited to 40,721 common shares, other than block purchase exceptions. Purchases will be made on the open market by Cyberplex through the facilities of the TSX in accordance with TSX requirements. The prices that Cyberplex will pay for any purchased common shares will be the market price of such shares on the TSX at the time of acquisition.
Cyberplex has 127,525,349 common shares issued and outstanding as of May 10, 2012, with a public float of 119,132,316 common shares. The Company has not purchased any of its common shares during the preceding 12 months pursuant to a normal course issuer bid.
The Company believes that from time to time the common shares of the Company have been trading at prices that do not fully reflect the underlying value of the Company. As a result, Cyberplex believes that its common shares are a good investment at its current and recent prices.
The Company may from time to time enter into a pre-defined plan with a registered investment dealer to allow for the repurchase of common shares at times when Cyberplex ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules, or otherwise. This plan will be adopted in accordance with applicable TSX rules and Canadian securities laws.
About Cyberplex
Cyberplex Inc. () is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, connects advertisers to their most relevant online customers and prospects. Cyberplex delivers targeted, high quality results through online, mobile and social initiatives that improve advertiser ROI, monetize the value of online properties, and build loyal online audiences.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on management-s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Contacts:
Cyberplex Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
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