TIO Networks Corp.

TIO Networks Corp.

March 23, 2010 08:00 ET

TIO Networks Q2 2010 Financial Results


VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2010) - TIO Networks Corp. (TIO), (the Company),(TSX VENTURE:TNC) today announced 2010 un-audited financial results for the three month period ended January 31, 2010.

Quarterly financial & business highlights

  1. Quarter over quarter transaction growth of 11%
  2. Year over year transaction growth of 22%
  3. US Dollar Transactional Revenue accelerated during quarter with January revenues of $1,927,086 USD representing 29% growth over Jan 2009.
  4. Transaction volume accelerated during the quarter with January transactions of 771,210 representing an increase of 33% over Jan 2009.
  5. Reduced operating expenses by $124,524 over Q2 2009
  6. Q2 revenue grew on a year over year basis despite a 14% decline in the US Dollar
  7. *EBITDA was $74,000 for the quarter
  8. Generated positive cash flow from operations
  9. Agreement with Georgia Power for bill payment services
  10. Strategic alliance with Best Buy to roll out bill payment services

"TIO's business model has demonstrated its durability during this period of heightened economic malaise in the United States," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "With the rapid acceleration of revenue in January and after quarter end in February along with a growing pipeline of business opportunities reflecting the Company's multi-channel strategy, we are well positioned for a strong finish to fiscal 2010."

Subsequent to the quarter under review, the following are key highlights:

  1. February transactions have surpassed the 1 million mark to $2.4 million USD
  2. The Company announced a significant business agreement with First Data Corporation to integrate its bill payment processing services with First Data's Money Network electronic payroll distribution service.
  3. The Company announced its new mobile bill payment platform for smartphones to capitalize on TIO's unique bill issuer relationships and expedited transaction posting capabilities

 Additionally, the Company has stepped up efforts to find accretive acquisitions in the US to take advantage of the current strength in the Canadian dollar."

  2nd Fiscal Quarter
Metric 2010 2009
Revenue $       5,511,536 $    5,504,749
EBITDA* $            74,000 $       247,000
Net Income (Loss) $       (632,627) $    (453,489)

*EBITDA - This is a non-GAAP measure - earnings before interest, tax, depreciation and amortization, and stock-based compensation.

Conference Call: 

A conference call to discuss the results will be held Tuesday March 23, 2010 at 11:00am EST. To participate in the conference call please dial, (416) 644-3426 in Toronto, or Toll free, 1-800-731-5319. Callers should request the TIO Networks Conference.

TIO Networks Corp.

TIO is the leading multi-channel expedited bill payment processor serving the largest Telecom, Wireless, Cable and Utility bill issuers in North America. With over 21,000 endpoints to its processing network, TIO symbolizes fast, convenient and secure access to expedited payment services.

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 Networks Corp. does not intend and does not assume any obligation to update these forward-looking statements.

*EBITDA is not a defined term under Canadian generally accepted accounting principles, nor does it have a standard, agreed upon meaning. Accordingly, the Company's EBITDA may not be directly comparable to EBITDA reported by other issuers. Management had determined EBITDA is a useful supplemental measure in evaluating the Company's performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures. This non-GAAP measure is intended to provide additional information on the Company's performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.

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