The Futura Loyalty Group Inc.

The Futura Loyalty Group Inc.

December 03, 2010 13:05 ET

Futura Announces Significantly Improved Third Quarter Financial Results

Quarterly Revenue Up 86% From Same Period in 2009

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2010) - The Futura Loyalty Group Inc. (TSX VENTURE:FUT) ("Futura" or the "Company") has released its financial results for the third quarter ending September 30, 2010. 

Revenue from continuing operations for the three month period ended September 30, 2010 was $373,604, up 86% from $201,371 in the same period in 2009. A significant portion of this increase was the result of improving Aeroplan Miles sales which rose to $273,820 for the third quarter of 2010, compared to $101,691 for the third quarter of 2009. Total revenue from continuing operations for the nine-month periods ended September 30, 2010 and 2009 was $1,140,494 and $546,412, respectively, representing a period-over-period increase of $594,082 or 109%.

The expansion of the Aeroplan offering into additional retail chains contributed significantly to the quarter and year-to-date increased revenue. The Company continues to add retailers issuing Aeroplan Miles and Futura Rewards® to consumers and has increased retail locations that offer Futura and Aeroplan rewards from 274 to over 600 locations this year. 

During the first 3 quarters of 2010, the Company enjoyed its busiest period since inception, securing marketing service agreements with a number of national retail organizations, with heavy focus in the important automotive service category; these included OK Tire (a 270 store tire and automotive service retailer), Integra Tire & Auto (64 stores across Western Canada), Meineke Canada (25 auto service locations), Maaco Systems (30 auto-body shops), Carstar Canada (all 6 BC locations) and numerous other retail/service companies including Nutrilawn (30+ lawn care franchises across Canada), Notre Dame Agencies (6 furniture stores in Newfoundland) and other independent retailers in the auto service and furniture categories. The Company also continued to see growth with other key customers that joined the program prior to 2010, including Active Green and Ross, PJ's Pet Centres and The Chesterfield Shop. 

"We are excited about the growth we have experienced and continue to grow our base of merchants issuing both the Aeroplan and Futura programs in Canada. We are also exploring some great US growth opportunities for 2011" said Mark Farrell, CEO of Futura.

The Company's EBITDA loss (loss before earnings before interest, taxes, depreciation and amortization) for the quarter and nine month period ended September 30, 2010 was $288,261, improving by 35% from the EBITDA loss of $445,772 in the same quarter of 2009. The EBITDA loss of $1,085,099 for the first three quarters of 2010 improved by 36% from $1,691,480 in the same period in 2009. 

The net loss from continuing operations for the three-month period ended September 30, 2010 was $454,079 in comparison to a loss from continuing operations of $605,832 for the same period of 2009. The net loss from continuing operations for the nine-month period ended September 30, 2010 was $1,545,736 in comparison to a loss from continuing operations of $2,128,097 for the same period of 2009. Revenue from the resale of Aeroplan Miles combined with reduced 2010 operating expenses accounted for a significant portion of the period-over-period improvement in the net loss.

    Three-month periods ended September 30 (unaudited)     Nine-month periods ended September 30 (unaudited)  
    2010     2009     2010     2009  
REVENUE     373,604     $ 201,371       1,140,494     $ 546,412  
EBITDA     (288,261 )     (445,772 )     (1,085,099 )     (1,691,480 )
NET LOSS and COMPREHENSIVE LOSS   $ (454,079 )   $ (763,837 )   $ (1,545,736 )   $ (2,339,533 )
LOSS PER SHARE (basic and diluted)   $ (0.00 )   $ (0.01 )   $ (0.01 )   $ (0.02 )
WEIGHTED AVERAGE NUMBER OF COMMON SHARES (in 000's)     162,976       133,847       155,971       117,768  

To see the Company's full financial statements, please go to or

About Futura Loyalty Group

The Futura Loyalty Group Inc. is an industry-leading provider of integrated and stand-alone loyalty solutions for Canadian businesses. The company offers a suite of loyalty products and services including access to two different coalition loyalty programs, Aeroplan and Futura Rewards. Futura also develops custom programs for companies wishing to develop proprietary loyalty solutions. Futura's loyalty services include member account set up, management and reward redemption platform, a web-based program transaction reporting interface for merchants, a robust offer management system, retail POS Integration for card swipe issuance and a proprietary web based issuance solution. For more information regarding Futura Loyalty Group, visit

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including any risks and uncertainties described herein, as well as the risks and uncertainties detailed in our final long form prospectus dated November 29, 2005 filed with the regulatory authorities.

®Registered Trademark of The Futura Loyalty Group Inc. 

The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information