Cyberplex Inc.
TSX : CX

Cyberplex Inc.

March 20, 2013 16:30 ET

Cyberplex Reports 2012 Results

Targeted Advertising Platform Refocuses Core Business

TORONTO, ONTARIO--(Marketwire - March 20, 2013) - Cyberplex Inc. (TSX:CX) a leader in mobile, social and online audience targeting and customer acquisition, today announced its financial results for the fiscal year ended December 31, 2012. Total revenue from continuing operations for the year was $13.5 million, a slight increase from the $13.4 million recorded in 2011, and the adjusted EBITDA loss for the year was $2.4 million as compared to a $2.8 million loss in the prior year.

"The financial results reported today are disappointing, but reflect a year of rebuilding for the future," said Geoffrey Rotstein, Chief Executive Officer. "Our priority during the year was to re-establish a foundation for Cyberplex based on areas of strength, quality and where there are considerable growth opportunities. These efforts involved shedding business units that were volatile and lacked longevity, and investing in an exciting future for the company and our shareholders. We now have an innovative technology platform in one of the fastest growing segments of digital advertising and expect to once again establish ourselves as a leader in this dynamic industry."

The Company's core advertising platform enables leading agencies and brands to achieve the most targeted and efficient real-time mobile, social, video and web advertising. The system combines powerful data, advanced analytics and automated algorithms to determine the best advertising placements for any given campaign and to bid the optimal price for those placements through leading advertising exchanges, all in real-time. This highly sophisticated and scalable system analyzes up to 200,000 potential advertising placements every second, with access to tens of billions of advertising placements every day.

"While our rebuilding efforts continued into the first quarter of 2013, we are now emerging a stronger company with no debt and with a more attractive and sustainable value proposition," added Rotstein. "We expect the second quarter and the remainder of the year to be less about investments in the platform and more focused on sales and marketing to agencies and brands across North America. We are already driving better results than many of the largest players in the industry and with a powerful and disruptive technology, we believe we have a core advertising platform to drive Cyberplex for the years ahead."

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 years presented:

Years ended December 31,
(In thousands of Canadian dollars)2012 2011
Net loss from operations$(3,901) $(9,585)
Add:
Depreciation of property and equipment 283 358
Amortization of domain properties and other intangibles 1,118 1,150
Impairment of goodwill and intangible assets - 4,854
Acquisition & restructuring costs 86 250
Share-based payments 43 141
Adjusted EBITDA$(2,371) $(2,832)

About Cyberplex

Cyberplex Inc. (www.cyberplex.com) provides a smarter way to target customers. The Company uses real-time analytics and data-intensive platforms to reach the most relevant mobile, social and online audiences and deliver customers. Cyberplex partners with leading agencies, advertisers and networks across North America who are looking to better understand their customers and to get more value out of advertising and media initiatives.

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. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

Cyberplex Inc.
Unaudited Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
December 31, 2012 and 2011
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 5,419 $ 4,050
Accounts receivable 2,425 8,769
Income taxes recoverable 40 31
Other current assets 303 6,907
8,187 19,757
Non-current assets:
Restricted cash - 2,357
Investment 50 -
Property and equipment 460 1,998
Domain properties and other intangibles 2,889 22,069
Goodwill 357 365
3,756 26,789
Total assets $ 11,943 $ 46,546
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 2,703 $ 13,707
Current portion of loans and borrowings - 4,634
Current portion of finance leases 155 63
Current portion of deferred lease inducements 41 71
Deferred revenue 549 498
Income taxes payable - 348
3,448 19,321
Non-current liabilities:
Loans and borrowings - 20,732
Finance leases 186 104
Deferred lease inducements 14 114
Deferred tax liabilities 244 603
444 21,553
Shareholders' Equity 8,051 5,672
Total liabilities and Shareholders' equity $ 11,943 $ 46,546
Cyberplex Inc.
Unaudited Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
Years ended December 31, 2012 and 2011
2012 2011
Continued operations:
Revenue $ 13,506 $ 13,353
Expenses:
Publishing and advertising costs 7,809 7,155
Employee compensation and benefits 5,139 5,561
Other operating expenses 2,972 3,610
Depreciation of property and equipment 283 358
Amortization of domain properties and other intangibles 1,118 1,150
Acquisition and restructuring costs 86 250
Impairment of goodwill and intangible assets - 4,854
17,407 22,938
Loss from operations (3,901 ) (9,585 )
Finance income 50 4,279
Finance cost (94 ) (39 )
Loss before income taxes (3,945 ) (5,345 )
Income tax recovery (expense):
Current 21 (38 )
Deferred 357 497
Loss for the year from continuing operations (3,567 ) (4,886 )
Discontinued Operation:
Income (loss) for the year from discontinued operation, net of tax of nil 5,129 (4,251 )
Income (loss) for the year 1,562 (9,137 )
Other comprehensive income (loss):
Net change in fair value of available-for-sale financial assets - 761
Amount reclassified to income - (753 )
Foreign currency translation adjustments to equity (69 ) 103
Other comprehensive income (loss) for the year, net of tax (69 ) 111
Total comprehensive income (loss) for the year $ 1,493 $ (9,026 )
Income (loss) per share:
Basic 0.01 (0.07 )
Diluted 0.01 (0.07 )
Loss per share from continuing operations:
Basic (0.03 ) (0.04 )
Diluted (0.03 ) (0.04 )

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