OneMove Technologies Inc.
TSX VENTURE : OM

OneMove Technologies Inc.

November 29, 2010 16:01 ET

OneMove™ Announces Fiscal 2011 First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2010) - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX VENTURE:OM), a provider of the leading web-based real estate transaction platform and the creator of the largest network of conveyancing professionals of its kind, announced today its financial results for the three month period ended September 30, 2010. All figures are reported in Canadian dollars.

Q1 Fiscal 2011 Operational Highlights

  • MLS® listed sales cooled down in BC dropping 38% from 27,000 to 17,000 from a year ago
  • Revenue decreased by 15% from $557,000 to $472,000 in Q1 year over year
  • Transactional volume decreased 20% from 19,000 to 15,000
  • Daily average revenue decreased 15% from $8,500 to $7,200
  • Member firms increased 25% or 87 to 425 from 338 from Q1 2009
  • 97% retention of user/members for the past 5 years
  • Expansion to Alberta with Official Beta release of econveyance on November 1, 2010

Q1 Fiscal 2011 Financial Summary

  Q1 FY 2011 Q1 FY 2010 % Change
Revenue $472,000 $557,000 - 15%
 EBITDA (loss)1 $(54,000) $97,000 -156%
Net income (loss) $(156,000) $10,000 -1660%
Net income (loss) per share $0.00 $0.00 +0%

"Our focus for fiscal 2011 is to continue growth in firm membership," said Martin Johnson, President and CEO. "In the first quarter the real estate market has seen an overall decline in transactions from the same time last year which we have managed to offset partially by adding 87 new member firms in the past year. We believe the industry is once again facing internal process optimization decisions to become more productive and competitive while processing fewer transactions. We have historically thrived in slower times as firms can really see the value of adopting our software and joining the community of econveyance members. Our entry into the Alberta market and the push to mandatory electronic filing in BC are fueling our continued growth in membership. The number of members processing transactions through econveyance has increased by more than 25% from the first quarter a year ago."

Mr. Johnson continued: "Looking forward, we recognize the economic headwinds the real estate industry faces during the winter months. As such, we are aggressively working to grow the number of member firms on our econveyance platform, which we believe will offset the impact of the typical seasonal reduction in real estate transactions moving forward and ultimately ensure profitability year round. Our long-term revenue growth prospects remain strong as we continue increasing our market across both Provinces. More importantly, as we expand our network of member firms and increase the number of transactions we do not anticipate any significant increase in expenses."

Q1 Fiscal 2011 Financial Review

Revenue for Q1 decreased 15% to $472,000 from $557,000 for Q1 fiscal 2010, due to an overall reduction in the number of real estate transactions conducted. The reduction of MLS® reported transactions by 38% was cushioned by the increase in membership firms. The econveyance transactions processed in Q1 fiscal 2011 decreased 20%, to 15,000 from 19,000 in Q1 fiscal 2010.

Total expenses were $628,000 compared to $549,000 for Q1 fiscal 2010. The increase in expenses was due to onetime charges incurred for quality assurance testing in preparation for the beta release in Alberta; an increase in office and general expenses due to IT purchases of licenses, permits and new computers; costs associated with the hiring of the new sales manager; and an increase in amortization of deferred development costs.

Adjusted EBITDA was $(54,000), compared to $97,000 in Q1 fiscal 2010.

The net income was $(156,000), or $(0.00) per share, compared to $10,000, or $0.00 per share for Q1 fiscal 2010.

In Q1 fiscal 2011, cash provided by (used in) operations was $(84,000), compared to $19,000 in Q1 fiscal 2010. Cash provided by financing activities decreased to $505,000 from $252,000 in Q1 fiscal 2010. As at September 30, 2010, OneMove had cash on hand of $396,000, compared to $148,000 as at June 30, 2010. The Company had a working capital surplus of $54,000 as at September 30, 2010, compared to a deficit of $(237,000) as at June 30, 2010. During the quarter, the Company completed a private placement for proceeds of $310,000 and received an additional $261,000 from share purchase warrants exercised by shareholders strengthening the Company's cash position.

As at September 30, 2010, total shares issued and outstanding were 80,276,110.

The full financial statements and MD&A for OneMove can be viewed at www.onemovetech.com and www.sedar.com.

1EBITDA is used internally by the Company to compare cash operating results from one period to another. EBITDA for the purposes of this analysis also excludes stock based compensation, shares issued for services and "Other income/losses" per the financial statements. EBITDA does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

About OneMove Technologies Inc.

OneMove Technologies Inc. (TSX VENTURE:OM) offers a leading real estate transaction platform. Through econveyance™, its proprietary web-based conveyancing software solution, OneMove™ simplifies and expedites the process of buying and selling real estate in western Canada. Econveyance connects all participants in the property transfer process, offering a secure and efficient means of completing the transaction online. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.com. Professional users site www.econveyance.com.

Forward Looking Statements

This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and OneMove Technologies Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.

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

Contact Information