Kaboose Inc. (TSX: KAB), one of the largest family-focused new media companies in the world, today announced financial results for its third quarter of fiscal 2008 ended September 30, 2008.
Financial Highlights for the Third Quarter
- Revenue increased 178% to $21.94 million from $7.89 million in the same quarter last year;
- EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and other non-recurring charges) increased 122% to $3.13 million from $1.41 million in the same quarter last year;
- Net loss for the quarter was $2.93 million, or $0.02 per share, compared to net income of $0.11 million or nil cents per share in the third quarter of 2007; net loss for the third quarter of 2008 included amortization related to previous acquisitions of $3.70 million, compared to amortization of $1.07 million in the same quarter of 2007; and
- Balance sheet as at September 30, 2008 remains strong with cash and cash equivalents totaling $12.33 million and total bank debt of $20.40; during the quarter, the Company repaid approximately $2.64 million of bank debt.
Financial Highlights for the Nine-Month Period
- Revenue increased 179% to $60.42 million from $21.67 million in the same nine-month period last year;
- EBITDA increased 152% to $6.93 million from $2.75 million in the same period last year; and
- Net loss for the first nine months of 2008 was $9.26 million, or $0.07 per share, compared to a loss of $0.03 million or nil cents per share in the same period of 2007; net loss for the first nine months of 2008 included amortization related to previous acquisitions of $10.93 million, compared to amortization of $2.83 million in the same period of 2007.
Operational Highlights for the Quarter
- Advertising clients whose campaigns ran in the quarter included top Fortune 500 companies such as Abbott Laboratories, Disney, Fidelity, Forest Laboratories, General Mills, General Motors, GlaxoSmithKline, Hewlett Packard, Johnson & Johnson, Kellogg's, Kimberly-Clark, Kraft, Microsoft, Nestlé, Nintendo, PepsiCo, Procter & Gamble, Reckitt Benckiser, Sega, Target, Unilever, Viacom, Visa, Walgreens, Wal-Mart and Yahoo!;
- In July 2008, Bounty, the UK's favourite parenting club and pre-eminent advertising platform, extended its long-term relationship with Unilever, one of the world's largest consumer products companies, whereby Unilever broadened its selection of leading media channels from Bounty to capitalize on Bounty's unparalleled reach and expose Unilever brands to moms and young families across the UK;
- In August 2008, Kaboose presented at two investor conferences: the RBC Capital Markets' North American Technology Conference on August 6, 2008 in San Francisco and the 28th Annual Canaccord Adams Global Growth Conference in Boston on August 12, 2008;
- On September 3, 2008, the Company sold its Two Peas operations to Leisure Arts, Inc., a division of Liberty Media;
- In September 2008, Kaboose.com received an Outstanding Website Award in the family category from the Web Marketing Association in its 12th annual WebAwards, the premier Internet award competition that judges website development against an ever increasing Internet standard of excellence and against peer sites in numerous industry categories; and
- A Bounty consumer survey for the quarter revealed that the Bounty Club offers a wider range of facilities that are superior to comparative parenting clubs with 91% of respondents stating that they trust the advice and information provided by the Bounty Club.
Subsequent Events
- Kaboose entered into an agreement with the Royal Bank of Canada ("RBC") under which RBC will provide Kaboose with an operating line of credit of up to $5 million;
- Kaboose launched its Family Publisher Community, which will be representing the inventory of five additional high-quality web destinations servicing its core demographic of moms, including MommyandMe.com, PlanningFamily.com, TheCuteKid.com, ParentSociety.com and MyGroceryDeals.com; the new sites will increase Kaboose's audience of moms online by approximately 30%; and
- Kaboose signed a five-year agreement with Cookie Jar Entertainment to relaunch its Mommy and Me brand online and represent the property's audience to advertisers targeting the mom demographic.
"Despite a challenging economic environment, our UK operations continued to outperform our expectations while our North American results were better than expected due to our disciplined cost containment and investments we made earlier this year which have now begun to yield results," said Jason DeZwirek, Chairman and Chief Executive Officer of Kaboose. "Our performance in the third quarter is demonstrative of our strength in the highly coveted mom audience. With the recent launch of our Kaboose Family Publisher Community, as well as other important investments and new initiatives in both our UK and North American operations, we look forward to continuing to strengthen our global position, providing an even greater value proposition for the world's leading brands to reach our highly targeted audience." -- www.cnxmarketlink.com
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