360 Vox Corporation

TSX VENTURE : VOX


360 Vox Corporation

May 23, 2014 16:30 ET

360 Vox Corporation Reports 2014 Q1 Results

MONTREAL, QUEBEC--(Marketwired - May 23, 2014) - 360 VOX Corporation (TSX VENTURE:VOX)

360 VOX Corporation ("360 VOX" or the "Company"), a global real estate company in the hospitality and asset management, real estate development and sales and marketing businesses, today reported results for the three months ended March 31, 2014.

Highlights:

(All figures in Canadian dollars and presented under IFRS, except where otherwise indicated).

  • Net revenue for the quarter of $6.4 million on gross revenues of $15.6 million for a net margin of 41%, an increase from the same quarter in 2013 of $0.15 million in net revenue and $1.66 million in gross revenues.
  • Reportable segment profit in the sales and marketing division decreased by $2 million from the same quarter in 2013 due to weaker results from large scale development sales and marketing.
  • Reportable segment profit for the hospitality and asset management division decreased by 8% to $1.05 million, from $1.14 million in 2013, as a result of the sale of three hotels under management in the latter part of 2013. The reduction in profit was offset by the revenue earned from agreements entered into to manage two U.S. resorts in 2013.
  • Reportable segment profit for the real estate development division increased to $0.5 million from a loss of $0.27 million in 2013 as a result of new development agreements entered into in the latter part of 2013.
  • Net loss for the three months ended March 31, 2014 of $1.2 million, or $0.004 per share, compared to $0.5 million in 2013, or $0.002 per share. The loss includes $0.25 million of acquisition and due diligence related costs and $0.38 million in amortization and write-offs, which, if excluded, results in adjusted net loss1 of $0.6 million.
  • Cash balance at March 31, 2014 of $2.8 million.

Results:

Revenue for the first quarter of fiscal 2014 was $15.6 million, up by $1.7 million from the same quarter of fiscal 2013. Net revenue increased by $0.15 million over the same quarter in fiscal 2013. The change in revenue period over period is explained mostly by weaker results in the large scale development, sale and marketing revenue offset by improved results in the real estate development fee revenue.

Cash balance at the end of Q1 decreased as a result of servicing the company's debt obligations and investment in certain leasehold improvements, offset slightly by Franchisor advances received in the sales and marketing segment.

Net loss for the three months ended March 31, 2014 was $1.2 million, or $0.004 per share. The net loss was affected by non-cash adjustments required by IFRS, which includes significant amortization expense ($0.38 million). The net loss is also affected by one-time acquisition and due diligence related costs ($0.25 million). The adjusted net loss1, excluding amortization and acquisition and due diligence related costs, for the three months ended March 31, 2014 would have been $0.6 million or $0.002 per share.

1 Adjusted net earnings does not have a standardized meaning prescribed by IFRS and thus may not be comparable to similarly titled measures presented by other issuers. The Company believes that the adjusted net earnings presented enables the Company's shareholders to better assess the Company's operating results. Investors should consider this non-IFRS measure in the context of the Company's IFRS results.

On Behalf of the Board of Directors

Robin Conners, President and CEO

About 360 VOX Corporation

360 VOX is a publicly traded company, incorporated under the laws of Ontario and listed on the TSX Venture Exchange under the symbol "VOX". 360 VOX is engaged in the business of managing and developing international hotel, resort, residential and commercial real estate projects through its wholly- owned subsidiaries, 360 VOX Asset Management Inc., 360 VOX GP, 360 VOX LLC, 360 VOX Developments Inc. and Wilton Properties Ltd. 360 VOX is also engaged in the sales and marketing of real estate through Sotheby's International Realty Canada and Blueprint Global Marketing.

For further information on 360 VOX please visit our websites at www.360vox.com and www.sothebysrealty.ca. 360 VOX's public filings, including its most recent audited consolidated financial statements, can be reviewed on the SEDAR website (www.sedar.com).

This news release may contain forward-looking statements and information within the meaning of applicable securities legislation. These statements reflect management's current expectations, estimates, projections, beliefs and assumptions that were made using information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may" "will", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "forecast", "outlook", "potential", "continue", "should", "likely" or the negative of these terms or other comparable terminology.
Forward-looking statements include statements with respect to, the negotiating and entering into of agreements, the terms of the proposed transaction, and the effect of completing the proposed transaction, and are based on assumptions that management believe are reasonable. These statements are not guarantees of future results and are subject to numerous risks and uncertainties, which may cause actual results or events to differ materially from current expectations, including that the parties may not reach agreement on the terms of the proposed transaction or there may be changes to the terms of the transaction from those in the letter of intent, or if agreements are entered into, any required consents or approvals may not be obtained or obtained in a timely manner and any conditions may not be satisfied or the transaction may not be completed for other reasons. Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of 360 VOX to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.

Contact Information

  • 360 VOX Corporation
    Colin Yee
    Chief Financial Officer
    514-987-6452