Generated $3.4M in *Cashflow From Operating
Activities,
representing growth of 6.4% QoQ and
65.7% YoY
VANCOUVER, June 29, 2017 /CNW/ - TIO NETWORKS CORP.
(TSX-V: TNC, the "Company" or "TIO") today announced
third quarter financial results for the period ended April 30, 2017.
Third quarter financial & business highlights (all figures
in Canadian dollars except where noted):
- Revenue increased 32.3% to $23.8M
from Q3 2016.
- Gross profit increased 27.7% to $11.4M from Q3 2016.
- Adjusted EBITDA** for Q3 2017 increased year over year
("YoY") to $2.92M from
$2.88M.
- *Cashflow from operating activities increased by 65.7% YoY and
by 6.4% quarter over quarter ("QoQ").
- Invested and fully expensed $2M
in research and development initiatives to drive growth an increase
of 52.3% YoY and 17.8% QoQ.
- TIO's gross transaction processing volume ("TPV") was
US$2.2B in Q3 2017 an increase of
21.2% YoY and 2.9% QoQ.
- TIO's direct-to-consumer membership grew to 1.38M members.
- TIO's overall activated location count grew sequentially to
62,932 and the number of kiosks activated on the network increased
13.5% from 928 to 1,053.
- Finished the period with $100.9M
in cash and cash equivalents and restricted cash (including cash
held to fulfil bill payment obligations).
- Net cash available for use in operations increased to
$19.5M which represents a 113%
increase YoY.
- One-time costs of $0.99M in the
form of M&A costs largely related to the PayPal transaction are
included in G&A expenses.
- FX related revaluation of the Silicon Valley Bank's ("SVB")
loan resulted in an unrealized loss of $0.38M and is included in foreign exchange loss.
The total foreign exchange loss included in Q3 2017 was
$0.51M as compared to a $0.32M foreign exchange gain in Q2 2017
representing a $0.83M change QoQ. It
is important to note that these FX changes, outside of SVB loan,
also impacted Adj EBITDA as the company does not adjust for FX
fluctuations in its adj EBITDA figures.
Q3 2017
comparison to Q3 2016
|
Three months
ended Apr. 30
|
Nine months
ended Apr. 30
|
|
2017
|
2016
|
2017
|
2016
|
Revenue
|
$
|
23,763
|
$
|
17,967
|
$
|
72,518
|
$
|
49,641
|
Gross
Profit
|
$
|
11,392
|
$
|
8,919
|
$
|
35,285
|
$
|
24,771
|
Adjusted
EBITDA**
|
$
|
2,922
|
$
|
2,880
|
$
|
10,677
|
$
|
7,543
|
Operating Cash Flow
before non-
cash working capital items and
one-time M&A costs*
|
$
|
3,397
|
$
|
2,050
|
$
|
10,460
|
$
|
5,865
|
Net Income
|
$
|
78
|
$
|
1,605
|
$
|
3,825
|
$
|
4,670
|
Q3 2017
sequential comparison
to Q2 2017
|
Quarter
ended
|
|
Apr. 30,
2017
|
Jan. 31,
2017
|
Revenue
|
$
|
23,763
|
$
|
24,537
|
Gross
Profit
|
$
|
11,392
|
$
|
12,064
|
Adjusted
EBITDA**
|
$
|
2,922
|
$
|
4,160
|
Operating Cash Flow
before non-
cash working capital items and
one-time M&A costs*
|
$
|
3,397
|
$
|
3,192
|
Net Income
|
$
|
78
|
$
|
2,110
|
"We had a solid quarter and continued to improve in our
all-important *cashflow metric which has been a key focus for
management" said Hamed Shahbazi,
Chairman and CEO of TIO. "We thank the shareholders for their
support of the PayPal transaction as we had over 99.7% support as
part of our shareholder approval process. We are making good
progress towards finalizing the transaction and are excited about
joining the PayPal family."
The Company expects the acquisition of TIO Networks by Paypal to
be completed in 2017 subject to certain closing conditions.
There will be no conference call.
* Cashflow from operating activities specifically relates to the
Company's cashflow generation capabilities. This metric adds
back one-time costs related to the Company's M&A
activity. In Q3 2017, cashflow from operating activities was
$3,397 (in '000's) comprised of
operating cashflow from operating activities of $2,403 plus $994 in
one-time M&A costs. In Q2 2017, cashflow from operating
activities was $3,192 (in '000's)
(operating cashflow from operating activities of $2,576 plus $616 in
one-time M&A costs)
** EBITDA is a non-IFRS measure - earnings before interest, tax,
depreciation and amortization. Adjusted EBITDA is EBITDA plus
stock-based compensation, non-recurring transaction and
restructuring expenses. EBITDA is not a defined term under IFRS nor
does it have a standard, agreed upon meaning. Accordingly, TIO's
EBITDA may not be directly comparable to EBITDA reported by other
issuers. TIO management had determined EBITDA is a useful
supplemental measure in evaluating TIO'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 TIO's
performance and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
About TIO
TIO is a cloud-based multi-channel bill payment processing and
receivables management company, serving the largest telecom,
wireless, cable, and utility bill issuers in North America. TIO integrates with the back
office of billing systems to accept, validate, and accept payments
outside of the traditional bank channel, via self-service kiosk,
retail walk-in, mobile, and web solutions. TIO symbolizes fast,
convenient, and secure access to expedited bill payment
services.
Visit: www.tionetworks.com.
Join the conversation at: www.twitter.com/TIOnetworks or like
us: www.facebook.com/TIOnetworks
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
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 does not intend and does not assume any obligation to
update these forward-looking statements.
SOURCE TIO Networks Corp.