TORONTO, ON--(Marketwired - November 24, 2016) - YANGAROO Inc. (TSX VENTURE: YOO) (OTCBB: YOOIF), the industry's leading secure digital media management and distribution company, today announced results for the third quarter ended September 30, 2016. Q3 revenue was $1.26m, 9% lower than the same period in 2015 and 9% higher than the previous quarter. Advertising Division sales were down 23% over the same period in 2015 due to a decline in US revenues, although Canadian sales are up 23% YTD. Entertainment Division remains solid and stable with 4% increase over the same period in the previous year and up 33% over the previous quarter. Q3 normalized EBITDA loss was $178,953, up 8% from same period in 2015.
Business progress in the third quarter includes the grant of Canadian Patent #2,603,460 Media File Distribution System and Method and the announcement of a partnership with MTV Latin America for delivery of Latin music videos to MTV Columbia, MTV Argentina and MTV Mexico City.
On the advertising front, YANGAROO's extensive reach now connects brands to all destinations throughout the United States and Canada including ABC, CBS, NBC, FOX, plus all cable networks, syndication companies and radio destinations with more than 450 different file formats.
"Consolidated sales increased over the prior quarter, but decreased over the same quarter in 2015," said Gary Moss, President and CEO of YANGAROO. "The late summer was unusually quiet in the US television advertising market as many of the Company's clients did not introduce new campaigns prior to the US election. In the days following the U.S. election, the Company's advertising distribution business has shown indications of beginning to strengthen. Despite the soft market, we have had several significant account wins recently which will begin to utilize our services in Q4, or Q1 2017. The Entertainment Division continues to produce stable results with good deal activity in both Music and Awards Shows. We continue to monitor and control costs to ensure that cash utilization remains at a minimum, while not impacting the ability of the company to execute against our plans."
The Company also announces that, in connection with a review by staff of Ontario Securities Commission, it would like to disclose and clarify a forward-looking statement made by the Company in a "Fact Sheet" and "Investor Presentation" (the "Documents") filed on the Company's website. The Company had included forwarding-looking information in the Documents stating that the Company expected to be cash flow positive for the year ended December 31, 2016. As the Company had not been historically cash flow positive, this forward looking information should have been disclosed as "material" in accordance with National Instrument 51-102 Continuous Disclosure Obligations in addition to being on the Company's website and identified as forward-looking information. The information was subsequently removed from the Documents as, the Company has not been cash flow positive for the period commencing Q1 2016 to Q3 2016.
Summary of operating results for the periods ended September 30th 2016:
|| ||Nine Months
|| ||Third Quarter
|Normalized EBITDA (loss)
|Net loss for the period
|Loss per share (basic & diluted)
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America's major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.