360 Vox Corporation

TSX VENTURE : VOX


360 Vox Corporation

April 29, 2014 19:49 ET

360 Vox Corporation Reports Fiscal 2013 Results

MONTREAL, QUEBEC--(Marketwired - April 29, 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 year end results for the year ended December 31, 2013.

Highlights:

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

  • Net revenue for the year of $25.5 million on gross revenues of $73 million for a net margin of 35%.
  • Reportable segment profit in the sales and marketing division increased to $2.9 million from a loss of $0.35 million in 2012.
  • Reportable segment profit for the hospitality and asset management division decreased by 18% to $4 million, from $4.9 million in 2012, as a result of the sale of three hotels under management. The reduction in profit was offset by the revenue earned from agreements entered into to manage two U.S. resorts in 2013.
  • Reportable segment loss for the real estate development division decreased to $0.6 million from $1 million in 2012. This segment is poised to have a strong 2014 as new development agreements have been entered into in the latter part of 2013.
  • Net loss for the year ended December 31, 2013 of $3.3 million, or $0.01 per share, compared to $10.4 million in 2012. The loss includes $1.3 million of acquisition and due diligence related costs and $3.8 million in amortization and write-offs, which, if excluded, results in adjusted net earnings(1) of $1.7 million.
  • Cash balance at December 31, 2013 of $3.6 million.

Results:

Revenue for the fourth quarter of fiscal 2013 was $19.8 million, down 1% from $20 million in the third quarter and up by $12.8 million from the same quarter of fiscal 2012. Net revenue increased by $1.2 million from the third quarter, and increased by $1.6 million over the same quarter in fiscal 2012. Revenue for the twelve months ended December 31, 2013 was $73 million, an increase of $60 million from the same period in 2012. Increase in revenue over 2012 is primarily revenue from the acquired businesses of Sotheby's International Realty Canada announced in the latter part of 2012.

Cash balance at the end of Q4 increased as a result of the private placement of convertible debentures ($8.7 million), announced earlier in the year, offset by the cash used to acquire the Company's hospitality division ($1.0 million), advances and investment made in a development in Croatia ($2.2 million), acquisition of property, plant and equipment ($0.86 million) and cash used for operations ($1.8 million).

Net loss for the year ended December 31, 2013 was $3.3 million, or $0.01 per share. The net loss was affected by non-cash adjustments required by IFRS, which includes significant amortization expense ($3.8 million). The net loss is also affected by one-time acquisition and due diligence related costs ($1.3 million). The adjusted net earnings(2), excluding amortization and acquisition and due diligence related costs, for the year ended December 31, 2013 would have been $1.7 million or $0.006 per share.

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.

(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.

(2) 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.

Contact Information

  • 360 VOX Corporation
    Colin Yee
    Chief Financial Officer
    514-987-6452
    www.360vox.com