JERSEY CITY, N.J., May 15, 2019 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (NASDAQ: SITO), an insights-driven Consumer Behavior and Location Sciences™ company, announced today its financial results for the first quarter ended March 31, 2019. 

First Quarter Financial and Recent Business Highlights

  • Total revenue for the three months ended March 31, 2019 was $8.4 million.
  • SITO’s traditional product, mobile device advertising, comprised $4.9 million of the total revenue.
  • The remaining $3.4 million of revenue was generated from sales of a new product.
  • Sales of the Company’s new product have already generated recognized revenue of $8.8 million during the second quarter of the current fiscal year.
  • Detailed financial results for the first quarter ended March 31, 2019 are described in the financial summary sections below.

Tom Pallack, SITO’s Chief Executive Officer commented, “Our new product is a next generation tool for cross-media advertising that leverages geo data as a feedback loop to optimize marketing.  We’ve chosen to apply this to the theatrical industry as the first of many verticals that we plan to approach.”

First Quarter Financial Summary

Total revenue for the three months ended March 31, 2019 declined $2.7 million, or 24%, to $8.4 million, compared to total revenue of $11.1 million for the corresponding period of 2019. This decline resulted primarily from a large, one time contract that was recognized in Q1 of 2018, as well as a decrease in the demand for the Company’s traditional products.

Gross profit for the three months ended March 31, 2019 was $2.9 million, or 34% of total revenue, compared to $4.4 million, or 40% of total revenue, in the corresponding period of 2018. The decrease in gross profit margin was due to our initial aggressive pricing of the Company’s new product.

Loss from operations for the three months ended March 31, 2018 was $4.7 million compared to a loss from operations of $5.9 million in the corresponding period of 2018.

Net loss for the three months ended March 31, 2019 was $5.0 million, or ($0.20) per basic and diluted share, compared to a net loss of $5.3 million, or ($0.22) per basic and diluted share, in the corresponding period of 2018.

Balance Sheet Summary

The Company is facing liquidity challenges due to negative cash flow.  As of March 31, 2019, the Company had $1.8 million in cash and $8.5 million of accounts receivable compared to $2.6 million in cash and $10.2 million of accounts receivable as of December 31, 2018.  The Company’s plans to improve cash flow include accelerating receivables collection through improvements in the collection process, monitoring and/or reducing expenditures in non-critical areas, continuing to execute the Company’s plan to seek longer and more profitable customer agreements, and seeking additional capital, as needed.  There can be no assurance that the Company’s efforts will result in the resolution of the Company’s liquidity needs.

Conference call information:

Date: Wednesday, May 15, 2019
Time: 4:30 p.m. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: 877-407-8293
Dial in Number for International Callers (Outside U.S. & Canada): 201-689-8349
The conference call will also be webcasted live on the Investor Relations section of SITO’s IR web site at http://ir.sitomobile.com/ir-calendar.

A replay will be available for 2 weeks starting on May 15, 2019 at approximately 6:00 p.m. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 13690934

About SITO Mobile, Ltd.

SITO turns the consumer journey into a powerful instrument for marketers, delivering actionable insights that influence behavior in real-time. Through Consumer Behavior and Location Sciences™, SITO develops customized, data-driven solutions for brands spanning strategic insights and media. Our science and products reveal a deeper, real-time understanding of customer interests, actions and experiences providing increased clarity for brands when it comes to navigating business decisions and delivering advertising. The Company is home to an internally developed, proprietary location-data technology stack, arming clients with a powerful resource for granular data, real-time insights and optimization, and delivery of successful media campaigns. Using in-store targeting, proximity targeting, geo-conquesting and attribution data, SITO creates audience profiles to develop measurable hyper-targeted campaigns for brands. For more information regarding SITO’s science, technology and customized solutions spanning media and research, visit www.sitomobile.com.

Cautionary Statement Regarding Certain Forward-Looking Information  

This press release contains forward-looking statements. These statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements concerning the following: SITO’s plans and initiatives; our possible or assumed future results of operations; our ability to attract and retail customers; our ability to sell additional products and services to customers; our competitive position; our industry environment; and our potential growth opportunities. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” in our Annual Report on Form 10-K, for the year ended December 31, 2017, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, and the reports we file with the SEC. Actual events or results may vary significantly from those implied or projected by the forward-looking statements due to these risk factors. No forward-looking statement is a guarantee of future performance. You should read our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q and the documents that we reference in our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q and have filed as exhibits thereto with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results and circumstances may be materially different from what we expect. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:

Investor Relations
Rob Fink
Hayden IR
Phone: 646.415.8972
Email: SITO@haydenir.com 

Source: SITO Mobile, Ltd.


SITO MOBILE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

    For the Three Months Ended
    March 31,
    2019  2018 
       
Revenue    
 Media placement$  8,430,376 $  11,144,652 
 Total revenue   8,430,376    11,144,652 
       
Cost of Revenue    
 Cost of revenue   5,572,737    6,697,876 
 Gross profit   2,857,639    4,446,776 
       
Operating Expenses    
 Sales and marketing   4,038,116    5,260,251 
 General and administrative   3,401,172    4,949,383 
 Depreciation and amortization   148,826    185,805 
 Total operating expenses   7,588,114    10,395,439 
       
  Loss from operations   (4,730,475)   (5,948,663)
       
Other Income (Expense)    
 (Loss) gain on revaluation of warrant liability   (319,761)   641,216 
 Other income   388    86,079 
 Interest (expense) income, net   (155)   3,974 
       
  Net loss before income taxes   (5,050,003)   (5,217,394)
       
  Income tax expense   520    (31,385)
       
  Net loss from operations$  (5,049,483)$  (5,248,779)
       
 Basic and diluted net (loss) per share$  (0.20)$  (0.22)
       
 Basic and diluted weighted average shares outstanding   25,545,362    23,724,307 
       


SITO MOBILE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

    March 31,  
    2019 December 31,
    (Unaudited) 2018
Assets    
 Current assets    
  Cash and cash equivalents$  1,759,927$  2,597,246
  Accounts receivable, net   8,515,888   10,206,664
  Other receivable    58,410   - 
  Other prepaid expenses    343,917   469,041
       
    Total current assets   10,678,142   13,272,951
       
 Property and equipment, net   311,000   331,635
       
 Other assets    
  Capitalized software development costs, net   1,382,839   861,699
  Intangible assets:    
    Patents   606,366   630,857
    Other intangible assets, net   829,257   897,007
    Operating Lease ROU Assets, net   243,010   311,717
  Goodwill   6,444,225   6,444,225
  Other assets    124,633   125,543
       
    Total other assets   9,630,330   9,271,048
       
    Total assets$  20,619,472$  22,875,634
       

 

Liabilities and Stockholders' Equity     
 Current liabilities    
  Accounts payable $  6,126,305 $  4,377,805 
  Accrued expenses   4,362,357    4,610,146 
  Other current liabilities   376,859    3,571 
  Deferred revenue   175,000    264,493 
  Operating lease liabilities   260,610    307,536 
  Warrant liability   494,445    174,684 
       
    Total current liabilities   11,795,576    9,738,235 
       
 Long-term liabilities    
  Operating lease liabilities   -     27,062 
  Other liabilities   6,744    7,644 
       
    Total long-term liabilities   6,744    34,706 
       
    Total liabilities   11,802,320    9,772,941 
       
 Commitments and contingencies    
       
 Stockholders' Equity     
  Common stock, $.001 par value; 100,000,000 shares authorized,    
  25,641,812 shares issued and outstanding as of March 31, 2019; and    
  25,529.078 December 31, 2018 respectively   25,642    25,529 
  Additional paid-in capital   186,747,725    185,983,896 
  Accumulated deficit   (177,956,215)   (172,906,732)
       
    Total stockholders' equity    8,817,152    13,102,693 
       
    Total liabilities and stockholders' equity $  20,619,472 $  22,875,634