VoodooVox Inc.
CNSX : VVX

VoodooVox Inc.

November 29, 2013 21:23 ET

VoodooVox Reports Third Quarter 2013 Financial Results

Completes critical elements of its turnaround strategy

TORONTO, ONTARIO--(Marketwired - Nov. 29, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

This news release does not constitute, and the subject matter hereof is not, an offer for sale, or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of VoodooVox Inc. The securities of VoodooVox Inc. have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

VoodooVox Inc. ("VoodooVox" or the "Company") (CNSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the quarter ended September 30, 2013.

HIGHLIGHTS

  • Revenues from the Company's mobile advertising and analytics managed services for the nine months ended September 30, 2013 were $1.7 million, up 36% from 2012.

  • Completed the conversion of approximately 95.7% of the outstanding principal amount of debentures of the Company (including all interest accrued and payable thereon) into common shares resulting in the elimination of approximately $11.9 million of debt and approximately $3.6 million of interest payments over the next 3.5 years. Concurrent with the conversion, VoodooVox completed a financing and share consolidation.

  • Reduced total liabilities from $16.5 million at the end of the prior quarter to $3.3 million on September 30, 2013 and reduced the working capital deficit from $3.6 million at the end of the prior quarter to $1.7 million on September 30, 2013.

"With the support of our customers and partners Q3 saw continued growth in our revenues from our new national mobile advertising campaigns," said George Cooney, VoodooVox's CEO. "With the execution of our turnaround strategy including a significant reduction in our liabilities and a further reduction in our legacy operating costs we continue to acquire the trust of major brands and lay the foundation for 2014 growth."

THIRD QUARTER RESULTS

  • Third quarter revenues of $0.9 million compared to $0.9 million in the prior year period. Revenues from the company's mobile advertising and analytics managed services was $0.6 million, up 12% from the prior year period. Revenues from the company's legacy segments was $0.3 million, down 19% from the prior year period.

  • Third quarter operating expenses of $1.5 million compared to $2.7 million in the prior year period.

  • Third quarter net loss of $8.1 million ($0.33 per share) compared to a net loss of $2.4 million ($0.62 per share) in the prior year period. The third quarter net loss includes non-cash charges of $7.1 million on conversion of debentures and settlement of debt.

  • At September 30, 2013, the Company had a cash balance of $0.2 million compared to $0.1 million at December 31, 2012. Cash flow used in operations was $1.0 million for the nine month period ended September 30, 2013, as compared to $3.1 million used in operations in the prior year period.

Management believes that the combination of the debt conversion, the share consolidation and the new financing was a critical element of the Company's turnaround strategy and will allow the Company greater flexibility to pursue various future financing options given the improvement in its working capital position and reduction in the number of common shares outstanding. Management and the directors of the Company believe that the elimination of the fixed payment obligations associated with the debentures will alleviate certain significant financial stresses to which the Company was previously exposed.

This news release should be read in conjunction with VoodooVox's unaudited condensed interim consolidated financial statements, and the accompanying notes, as at and for the quarter ended September 30, 2013, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the VoodooVox website at www.voodoovox.com.

About VoodooVox Inc.

VoodooVox is a leader in performance based mobile advertising processing billions of transactions for a marquee list of global clients, agencies, advertisers and publishers. Our full service mobile ad network and campaign management platform drive targeted consumer sales leads to national and local advertisers on a pay for performance basis through mobile PayPerCall, PayPerClick and InCallMedia using real-time campaign performance and enhanced Caller Analytics. We also provide platform services in call analytics, call tracking, and hyper local campaign targeting to a growing list of mobile ecosystem partners. Visit www.voodoovox.com for more info.

The CNSX has neither approved nor disapproved the contents of this news release.

Forward-Looking Cautionary Statement

Certain information set out in this News Release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "hope", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "scheduled", "believe" and similar expressions. The forward-looking information set out in this News Release relates to future events or our future performance and includes: (i) information concerning the effect of the debt conversion, share consolidation, and new financing on future financing options; (ii) the transformative effect of the debt conversion, share consolidation, and financing on the Corporation's balance sheet and capital structure; (iii) the Company's ability to succeed in the mobile advertising market and the effect of the debt conversion, share consolidation, and financing on the Company's efforts in that regard.

Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Forward-looking statements involve substantial known and unknown risks, uncertainties and other factors which cause actual results to vary from those express or implied by such forward looking statements. These statements should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved.

The forward-looking statements contained in this press release are made as of the date hereof and based on what management of the company believes are reasonable assumptions. The Company disclaims any intention or obligation to update or publicly revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Furthermore, the Company does not assume responsibility for the accuracy and completeness of the forward looking statements set out in this news release. The Company's forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

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