TORONTO, ONTARIO — (Marketwired) — 08/07/13 — EQ Inc. (TSX: EQ) (“EQ Works”), a leader in targeted mobile, social, video and display advertising, today announced its financial results for the second quarter ended June 30, 2013. Total revenue from continuing operations for the quarter was $1.9 million, an increase from the $1.6 million recorded in the previous quarter, and adjusted EBITDA loss for the quarter was approximately $591,000 as compared to a loss of $942,000 in the previous quarter.
Highlights for the second quarter ended June 30, 2013
“During the second quarter, we began seeing results,” said Geoffrey Rotstein, President and CEO. “We are now seeing more demand for our product and a greater share of our clients- advertising budgets as we continue to demonstrate the effectiveness of our real-time advertising solution,” added Rotstein. “The largest growth area has been right here in Canada, where brands and agencies have been very receptive to our unique advantages and the results we deliver. We expect to see continued growth through the remainder of 2013.”
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 domain properties and other intangibles; (b) share-based payments, (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 continuing operations and Adjusted EBITDA for the periods presented:
About EQ Works
EQ Works () provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.
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. EQ Inc. 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:
EQ Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
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