Financial Service - TIO Posts 4th Quarter and its up
Revenue for the fourth quarter was $2,969,553, an increase of $801,126 or 37% over $2,168,427 as recorded in the fourth quarter of fiscal 2005. Transactional revenue increased by $496,648 to $2,343,660, an increase of 27% as compared with the same period last year.
In the fourth quarter of fiscal 2006, the Company deployed the TIO bill payment services to 189 locations (129 new TIO owned kiosks and 60 non-kiosk clerk assisted locations) bringing the total number of locations deployed to 1,087 (1,027 kiosks and 60 non-kiosk clerk assisted locations).
CNW Group
TIO Networks Announces Fourth Quarter and Year end Financial Results for Fiscal 2006
Q4 EBITDA Positive - Annual Revenues increase 25% from prior year
BURNABY,BC, Nov. 27 /CNW/ - TIO Networks Corp. (TIO), owner of North
America's leading automated bill payment and financial services network
(TSX-V: TNC), today announced financial results for the fourth Quarter and the
year ended July 31, 2006.
Revenue for the fourth quarter was $2,969,553, an increase of $801,126 or
37% over $2,168,427 as recorded in the fourth quarter of fiscal 2005.
Transactional revenue increased by $496,648 to $2,343,660, an increase of 27%
as compared with the same period last year. Gross profit for the fourth
quarter was $1,302,624, an increase of $578,488 over $724,136 as recorded in
the same quarter a year ago. Fourth quarter EBITDA(*) (earnings before interest,
tax, depreciation and amortization) was $115,000 compared to ($196,000)(xx) in
Q4 2005.
In the fourth quarter of fiscal 2006, the Company deployed the TIO bill
payment services to 189 locations (129 new TIO owned kiosks and 60 non-kiosk
clerk assisted locations) bringing the total number of locations deployed to
1,087 (1,027 kiosks and 60 non-kiosk clerk assisted locations). As of July 31,
2006, 902 (869 in the US and 33 in Canada) of these kiosks and all 60
non-kiosk clerk assisted locations were activated and capable of generating
revenues.
Revenue for the year ended July 31, 2006 increased 25% to $10,200,307
from $8,189,933 one year ago, with a net loss of $2,793,971 compared to a loss
of $1,656,543(xx) one year ago. EBITDA(*) (earnings before interest, tax,
depreciation and amortization) for the year was ($936,904) compared to
($759,085)(xx) one year ago.
The financial results are in line with expectations relative to the
Company's transactional revenue growth strategy to grow the number of
locations where the TIO services are offered through the deployment of TIO
owned kiosks and TIO Express, the Company's new non-kiosk clerk assisted
payments program. The Company completed its 2006 fiscal year in the strongest
financial and in its history. The strong working capital position includes
$8.2 million of cash and cash equivalents.
During fiscal 2006, the Company deployed the TIO services to 526 new
locations (466 TIO owned kiosks and 60 clerk assisted locations) compared to
236 kiosks last year. The year over year increase of 123% demonstrates a
continued ramp up in the rate of deployments. New deployments of TIO services
typically require up to a year to attain a majority of their expected regular
transactional volumes. As a consequence, the benefits of the Company's
improved share of recurring revenues will be reflected in subsequent quarters.
The financial results for 2006 included: 1- Amortization of property and
equipment in the amount of $1,280,621 compared to $593,025(xx) in 2005,
2- Interest expenses of $542,010 compared to $247,196 in 2005 and 3- Research
and Development expenses of $509,246 compared to $384,509 in 2005.
Annual revenue was primarily derived from transaction services (87% of
total revenue for fiscal year 2006 vs. 76% for fiscal year 2005), with the
balance being made up of maintenance services, professional services, software
and the sale of kiosk systems. Total recurring revenue for the year ended
July 31, 2006, including transaction services and maintenance services
revenue, increased 37% and accounted for $9,233,661 or 90% of total revenue,
compared to $6,741,029 or 82% for the year ended July 31, 2005.
The chart illustrates some key measures on the Company's performance in
terms of the deployment of its services:
<<
-------------------------------------------------------------------------
Q4 06 Q3 06 Q2 06 Q1 06 Q4 05
-------------------------------------------------------------------------
No. of Locations
deployed 1,087 898 743 659 561
-------------------------------------------------------------------------
No. of Locations
with TIO Express and
Devices installed,
operational and
capable of generating
revenues 962 762 702 582 516
-------------------------------------------------------------------------
No. of TIO Express
locations Signed up/
No. activated 60/60 - - - -
-------------------------------------------------------------------------
No. Transactions
for the quarter 795,191 776,585 707,923 642,460 580,731
-------------------------------------------------------------------------
Transactional
revenue generated
from applications
($'000) 2,254 2,250 2,080 1,900 1,736
-------------------------------------------------------------------------
Transactional revenue
gross margin ($'000) 857 729 701 580 481
-------------------------------------------------------------------------
Quarter to quarter
growth: No.
transactions and
gross margin from
transactional
revenue 2%/18% 10%/4% 10%/21% 11%/21% 12%/16%
-------------------------------------------------------------------------
>>
The Company's R&D program has substantially strengthened its product
offerings to include the bundling of TIO services onto new kiosk and ATM
hardware platforms and non-self-service environments (TIO Express). This
enables the Company to deploy its services and generate transactional income
without significant capital expenditures reducing the Company's reliance on
raising capital from treasury to grow the business.
"As a growth company in an industry ripe with opportunity, TIO has been
primarily focused on driving transactional revenue growth through the
deployment of its TIO services," stated Hamed Shahbazi, Chairman and CEO of
TIO Networks. "We feel that the results of our research and development
efforts will enable us to quantum leap our ability to deploy the TIO services
by leveraging existing infrastructure enabling TIO to better monetize its new
and existing biller relationships. We eagerly look to the new year as we feel
the introduction of the Hybrid ATM (ATM that accepts and dispenses cash) and
continued growth with TIO Express will greatly expand our installed customer
base as location and biller/service partners look to TIO for innovative ways
to reach their customers."
Conference Call: You are invited to attend a conference call on Tuesday
November 28th at 11am Eastern Standard Time to review the 2006 fiscal year end
financial results. The dial-in numbers are 416-644-3414 in Toronto, or, Toll
Free 1-800-733-7571. Callers should request the TIO Networks Conference.
About the TIO Networks Corp.
TIO Networks Corp. is building the largest and most convenient national
Automated Non-bank bill payment and financial services network. The network is
comprised of self-service and clerk assisted locations serving bill payment
services to the 'cash preferred' consumer marketplace in North America. With
more than 1000 locations operating in collaboration with top tier convenience
store chains, wireless products retailers and other locations, the TIO brand
symbolizes safe secure access to key financial services. For more information,
please visit www.TIOnetworks.com
The TSX Venture Exchange has not reviewed this news release and does not
accept responsibility for its adequacy and accuracy.
<<
(*)) EBITDA: Earnings before interest, tax, depreciation, and
amortization
EBITDA is not a defined term under Canadian generally accepted
accounting principles, nor does it have a standard, agreed upon
meaning. Accordingly, the Company's EBITDA may not be directly
comparable to EBITDA reported by other issuers. Management had
determined EBITDA is a useful supplemental measure in evaluating the
Company's performance as it provides investors with an indication of
cash available for debt service, working capital needs and capital
expenditures. This non-GAAP measure is intended to provide
additional information on the Company's performance and should not
be considered in isolation or as a substitute for measures
of performance prepared in accordance with GAAP.
(xx))Restated as per 2006 audited consolidated financial statements. Net
loss for fiscal 2005 as previously reported was $1,673,112. EBITDA
for Q4 2005 and full year 2005 as previously reported were
($233,000) and ($796,000) respectively.
>>
%SEDAR: 00010068E
For further information: Derek Lai, Acting CFO, TIO Networks, Tel: (604)
298-4636, Ext. 269, Email: [email protected]; John Lewis, Business
Development, TIO Networks, Tel: (416) 364-2266, Toll Free: 1-877-600-6001,
Email: [email protected]
Posted by staff at November 27, 2006 11:06 AM