VRX Worldwide Inc.

VRX Worldwide Inc.

August 28, 2014 17:53 ET

VRX Worldwide Reports 2014 Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 28, 2014) -

  • Total revenue in the second quarter increased 16% over the same period in 2013
  • VRX Studios' Service Revenue grew 19% and MediaValet's Licencing Revenue grew 55%
  • On a trailing 12 months basis, MediaValet's Licencing Revenue increased 122%
  • MediaValet's customer base continues to diversify with new customers in the US public and non-profit sectors, advertising, and online education
  • VRX Worldwide continues to invest in the cloud-based enterprise software space

VRX Worldwide Inc. (TSX VENTURE:VRW), a leading provider of cloud-based digital asset management software and global photography services, is pleased to report its second quarter results for 2014.

Summary of Quarterly Results (Unaudited)
2014 Q2 2014 Q1 2013 Q4 2013 Q3 2013 Q2
Total revenue $ 1,060,355 $ 1,072,348 $ 931,275 $ 944,220 $ 915,841
Gross profit $ 538,742 $ 594,628 $ 459,131 $ 473,681 $ 457,887
EBITDA $ (350,498 ) $ (84,215 ) $ (74,078 ) $ 64,964 $ 59,495
Net income $ (419,460 ) $ (249,116 ) $ (234,259 ) $ (54,116 ) $ (58,978 )
Earnings per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ 0.00 $ 0.00
Total assets $ 1,840,687 $ 1,700,983 $ 1,855,175 $ 1,753,169 $ 1,725,068

Total revenue for the second quarter of 2014 increased 1% sequentially over the first quarter and increased 16% over the second quarter of 2013. EBITDA and net income decreased over both time frames due to increased investment in the company's cloud-based enterprise software division (MediaValet), corporate development activities, and higher financing costs.

"With the third and most advanced release of MediaValet due out later this year, our development team has grown over 300% in the past six months," commented David MacLaren, President and CEO of VRX Worldwide. "Our increased investment in product development, R&D, and other areas of our software business over the last six months is to increase our ability to capitalize on the surging demand for cloud-based enterprise software. In our case, this explosion in demand, combined with the rapid increase in the creation of digital assets by marketing departments, is driving the need - by large and small companies alike - for a cost-effective, scalable, and secure digital asset management solution."

Continued MacLaren, "We're seeing a seismic shift in how companies think about software and IT. The flexibility, affordability and security of the Cloud is having a major effect on department budgets and accountability throughout organizations. IT budgets are tending to shrink while Marketing, Sales and HR budgets are tending to increase. This shift is allowing departments to take accountability for their own software and IT needs - enabling them to move faster, be more productive and add more value to their organizations as a whole."

Subsequent Event - As announced on August 25th, VRX Worldwide has entered into an agreement to sell its photography services business for $3 million CDN. This transaction is part of VRX Worldwide's strategic restructuring to focus solely on its cloud-based enterprise software business under its brand, MediaValet. Upon closing, which is subject to shareholder and TSX Venture approval, VRX Worldwide Inc. will be renamed MediaValet Inc. and the company's trading symbol will be changed accordingly.

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 Worldwide Inc.

Through its wholly owned brands, MediaValet™ and VRX Studios™, VRX Worldwide delivers cloud-based digital asset management software and global photography services to many of the world's leading manufacturing, healthcare, resource, high-tech, agricultural, consulting, consumer, travel and hospitality brands.

VRX Worldwide Inc.,

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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