VRX Worldwide Inc.
TSX VENTURE : VRW

VRX Worldwide Inc.

June 29, 2011 16:37 ET

VRX Reports 2011 First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - VRX Worldwide Inc. (TSX VENTURE:VRW) -

  • Profit Trend Continues with 10th Consecutive Profitable Quarter
  • MediaValet gaining momentum, recently covered in Globe & Mail and Toronto Star
  • Gross margin improves to 69%

VRX Worldwide Inc., a leading provider of content production, distribution, licensing and digital asset management services, is pleased to report it's financial results for the first quarter ended March 31, 2011.

Summary of Quarterly Results (Unaudited)
2011 Q1 2010 Q4 2010 Q3 2010 Q2 2010 Q1
Total revenue $ 907,477 $ 917,190 $ 1,008,181 $ 1,027,718 $ 1,076,558
Gross profit $ 622,413 $ 556,395 $ 613,210 $ 647,677 $ 728,520
EBITDA $ 108,828 $ 99,150 $ 173,448 $ 160,476 $ 158,645
Net income 19,623 15,140 $ 80,978 $ 91,168 $ 87,722
Earnings per share $ 0.001 $ 0.000 $ 0.002 $ 0.003 $ 0.003
Total assets $ 1,535,032 $ 1,251,438 $ 1,395,468 $ 1,310,939 $ 1,326,653

Total revenue decreased $9,713 (1%) from the fourth quarter of 2010 and $169,081 (16%) quarter over quarter. This decrease in revenue, over both quarters, is due to the effects of the prolonged global downturn, unusually harsh weather conditions in the beginning of 2011 and a weaker US dollar.

Despite the drop in revenue, EBITDA and net income increased by $9,678 (10%) and $4,483 (30%), respectively, over the fourth quarter of 2011 due to our continued focus on reducing costs and refining our production processes. EBITDA and Net income decreased by $49,817 (31%) and $68,099 (78%), respectively, over the first quarter of 2010 primarily as a result of a drop in service work and a weaker US dollar.

"While continuing to improve the efficiencies of our core operations, we remain focused on continuing to raise the quality of our existing services, expanding our customer base and investing in new opportunities," commented David MacLaren, President and CEO of VRX. "Our latest service offering, MediaValet™, the world's first 100% cloud-based digital asset management system, will benefit our existing travel and hospitality customers as well as companies, of all sizes and industries, that are amassing large quantities of digital assets."

The full financial statements and related MD&A are now available on the Company's website (www.vrxworldwide.com) and on SEDAR (www.sedar.com).

ABOUT VRX

Through a decade of growth, innovation and an unwavering commitment to quality, consistency and customer service, VRX is one of the world's leading providers of content production, distribution, licensing and digital asset management services. To find out more about VRX, its products and services, visit www.vrxstudios.com and www.mediavalet.co. VRX Studios Inc. is a wholly owned subsidiary of VRX Worldwide Inc. (TSX VENTURE:VRW) (www.vrxworldwide.com).

VRX Worldwide Inc.

David MacLaren, David MacLaren, CEO

"Neither the 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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