OneMove Technologies Inc.
TSX VENTURE : OM

OneMove Technologies Inc.

February 23, 2011 17:05 ET

OneMove™ Announces Fiscal 2011 Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2011) - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX VENTURE:OM), which provides a leading web-based real estate transaction platform, today announces its financial results for the three and six-month periods ended December 31, 2010. All figures are reported in Canadian dollars unless otherwise stated.

Q2 Fiscal 2011 Operational Highlights

  • MLS® listed sales cooled down in BC dropping 28% from 21,500 to 15,400 from a year ago
  • Transaction Revenue decreased by 16% from $482,000 to $403,000 in Q2 year over year
  • Transactional volume decreased 18% from 16,000 to 13,000
  • Daily average revenue decreased 16% from $7,600 to $6,400
  • General and administrative expenses increased slightly from $527,000 to $539,000 year over year
  • Member firms increased 25% or 90 to 446 from 356 from Q1 2009
  • 97% retention rate of user/members for the past 5 years
  • Expansion to Alberta with official production release of econveyance on January 4, 2011
Q2 Fiscal 2011 Financial Summary
  Q2 FY 2011 Q2 FY 2010 % Change H1 FY 2011 H1 FY 2010 % Change
Revenue $403,000 $528,000 -25% $ 875,000 $1,085,000 -22%
EBITDA (loss) $(136,000) $1,000 -137% $(190,000) $86,000 -320%
Net loss $(286,000) $(86,000) -232% $(442,000) $(76,165) +480%
Net loss/sh $0.00 $0.00 0% $0.00 $0.00 0%

Mr. Johnson commented: "We have seen a dramatic reduction in the number of transactions conducted in British Columbia since June 2010. Despite an overall drop of 28% in reported sales by the BC MLS®, our transaction revenue only declined by 16%. This is a direct result of the continued growth of firms that use econveyance. Historically, the downward pressure of the real estate market increases interest and adoption of our unique software solution. We saw this effect in late 2008 and early 2009 as firms downsized, cutting expenses and reducing staff. When the volume of transactions increased firms were faced with how they could maintain productivity with fewer resources and reduced staffing levels. The choices these firms faced were to either scale up by hiring again or find ways to process the increase in business with advanced technology; econveyance was clearly that choice. Management is confident that the increase in the number of firms during the past year, 90 in BC and increasing each month, will have a 'sling shot' effect and increase revenue in the coming months. We are also excited to see the impact our recent release of econveyance has had in Alberta."

"Of no less significance is the long awaited announcement of the date when filing completed documents in BC will be mandatory; January 1, 2012. Shareholders can look forward to continued improvements in financial performance as expansion of the network of member firms continues as we enter what is historically the stronger period of seasonal transactions in both British Columbia and Alberta. Moving forward, our growth trajectory and adoption will allow us to expand our platform into Canada's largest market; Ontario."

Q2 Fiscal 2011 Financial Review

Revenue for the second quarter of fiscal 2011 decreased 24% or $125,000 to $403,000 compared to $528,000 for the same period in fiscal 2010. $45,000 of the drop in revenue was related to one time integration fees earned. Transactions processed through econveyance for the quarter decreased to 13,000 from 16,000 from the same quarter a year ago compared to MLS® reported sales drop of 28% from 21,509 to 15,412 unit sales during the same period. Revenue for the first half of fiscal 2011 was $875,000, compared to $1,085,000 for the first half of fiscal 2010 a drop of $210,000 or 19% compared to a decline of MLS® reported sales of 34% from 48,701 to 32,297 unit sales during the same period. The number of firms using econveyance increased from 356 to 446 year over year. The number of registered user firms increased by 323, from 2,181 to 2,502 during the same period.

For Q2 fiscal 2011, total expenses were $691,000, an increase of 13% or $77,000 from $614,000 in Q2 fiscal 2010 and up 10% from $628,000 in Q1 fiscal 2011. For the first half of fiscal 2011, total expenses were $1,320,000, up 14% or $157,000 from $1,162,000 for the first half of fiscal 2010. The increase in total expenses is primary due to an increase in amortization of previously capitalized development costs and stock based compensation.

EBITDA for the second quarter of fiscal 2011 was $(136,000), compared to $1,000 for the same period a year ago, a decrease of $137,000. For the first half of fiscal 2011 EBITDA decreased by $272,000 to $(190,000) from $82,000.

Net income (loss) for the second quarter of fiscal 2011 was $(286,000) or $(0.00) per share, compared to net loss of $(86,000) or $0.00 per share for the same period a year ago, an increase of $200,000. For the first half of fiscal 2011 the net loss saw an increase of $(336,000) from $(76,000) to $(442,000).

Net cash provided (used) by operating activities in fiscal 2011 was $(147,000) compared to $(56,792) for the second quarter of 2010. For the first half of fiscal 2011 net cash used in operating activities increased from $(37,000) to $(230,000). The increase was due to increased operating losses and amortization.

As at December 31, 2010, OneMove had cash and cash equivalents of $408,000, compared to $148,000 as at June 30, 2010. The Company had a working capital surplus of $82,000 as at December 31, 2010, compared to a working capital deficit of $(237,000) as at June 30, 2010. Subsequent to year end the Company completed a non-brokered private placement where the Company issued 3,100,000 units at a price of $0.10 per unit, for total proceeds of $310,000 as well as proceeds of $261,000 from the exercise of warrants previously issued. During the quarter the Company received proceeds of $288,000 from the exercise of warrants. 

In January of 2011, OneMove released the production version of econveyance in Alberta.

Total shares issued and outstanding were 84,115,110 as at December 31, 2010.

The full MD&A and financial statements for OneMove are available at www.onemovetech.com and www.sedar.com.

EBITDA is used internally by the Company to compare cash operating resulted 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.

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