JERSEY CITY, N.J., Sept. 05, 2019 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (NASDAQ: SITO), an insights-driven Consumer Behavior and Location Sciences™ company, announced today its financial results for the second quarter ended June 30, 2019. 

Financial Summary

  • Total revenue increased 65% to $13.9 million;
  • SITO’s existing markets comprised $5.1 million of total revenue;
  • $8.8 million of total revenue was generated from new markets; and
  • Detailed financial results for the three- months and six-months ended June 30, 2019 is described in the financial summary sections below.

Second Quarter Financial Summary (Second Quarter of 2019 vs. Second Quarter of 2018)

Total revenue increased $5.5 million, or 65%, to $13.9 million, compared to total revenue of $8.4 million. This increase is primarily attributable to entering a new market in 2019, the first campaign of which was substantially carried out during the second quarter.

Gross profit was $4.5 million, or 32% of total revenue, compared to $4.0 million, or 48% of total revenue. The decrease in gross profit margin was due to aggressive initial pricing to penetrate new markets on which the Company is focusing.

Loss from operations was $3.7 million compared to a loss from operations of $6.1 million. This loss included one-time non-recurring impairment losses of $2.1 million comprised of write-downs of internally developed software and customer relationship long-lived assets acquired from the Hipcricket acquisition in 2015. The loss from operations would have been $1.6 million as compared to a loss from June 30, 2018 of $6.1 million, excluding the impairment losses.

Net loss was $3.4 million, or $0.13 per share, compared to a net loss of $5.7 million, or $0.23 per share.

Year-to-Date Financial Summary (First Six Months of 2019 vs. First Six Months of 2018)

Total revenue increased $2.7 million, or 14%, to $22.3 million, compared to total revenue of $19.6 million. Gross profit was $7.3 million, or 33% of total revenue, compared to $8.5 million, or 43% of total revenue. Loss from operations was $8.5 million compared to a loss from operations of $12.0 million. This loss from operations included one-time non-recurring losses of $2.1 million comprised of write-downs of internally developed software and customer relationship long-lived assets acquired from the Hipcricket acquisition in 2015. The loss from operations would have been $6.4 million as compared to a loss of $12.0 million, excluding the impairment losses.

Net loss was $8.5 million, or $0.33 per share, compared to a net loss of $11.0 million, or $0.45 per share.

Following is a reconciliation of the amounts of net loss from operations recognized and presented on the Unaudited Consolidated Statements of Operations and the resulting loss per share, in accordance with US GAAP to the amount of loss from operations and loss per share attributable to and before the effect of the aforementioned recognized non-recurring items:


             
      For the Three-months ended For the Six-months ended
      June 30, June 30,
      2019  2018  2019  2018 
As reported on the Statement of Operations,
  in accordance with US GAAP:
        
 Loss from operations $  3,704,789  $   6,081,577  $   8,435,264  $   12,030,240 
Less:           
 Loss on impairment - capitalized software development costs   1,911,285    -     1,911,285    -  
 Loss on impairment - customer relationships   177,535    -     177,535    -  
             
  Loss on impairment of long-lived assets   2,088,820    -     2,088,820    -  
             
Loss from operations before non-recurring items   1,615,969    6,081,577    6,346,444    12,030,240 
             
Other (income) expense    (305,624)   (367,774)   13,904    (1,099,043)
Income tax expense     3,037    22,059    2,517    53,444 
             
 Net loss before non-recurring items$  1,313,382 $  5,735,862 $  6,362,865 $  10,984,641 
             
As reported on the Statement of Operations,
  in accordance with US GAAP:
        
 Basic and diluted net (loss) per share$  (0.13)$  (0.23)$  (0.33)$  (0.45)
Less:           
 Basic and diluted net (loss) per share,
  attributable to non-recurring items
   0.08    -     0.08    -  
             
Basic and diluted net (loss) per share before non-recurring items$  (0.05)$  (0.23)$  (0.25)$  (0.45)
             
Basic and diluted weighted average shares outstanding   25,641,812    25,128,681    25,593,853    24,430,373 
             


Balance Sheet

As of June 30, 2019, the Company had $0.8 million in cash and cash equivalents compared to $2.6 million at December 31, 2018.

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 retain 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, 2018, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, 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
Brett Maas
Hayden IR
Phone: 480.861.2425
Email: SITO@haydenir.com

Source: SITO Mobile, Ltd.


SITO Mobile, Ltd. 
CONSOLIDATED BALANCE SHEETS 
        
    June 30, 2019
(Unaudited)
 December 31, 2018 
Assets     
 Current assets     
  Cash and cash equivalents$  789,528 $  2,597,246  
  Accounts receivable, net   15,674,306    10,206,664  
  Other assets, current   194,935    469,041  
        
  Total current assets   16,658,769    13,272,951  
        
 Property and equipment, net   250,363    331,635  
        
 Other assets     
  Capitalized software development costs, net   -     861,699  
  Intangible assets:     
  Patents   583,681    630,857  
  Other intangible assets, net   583,971    897,007  
  Goodwill   6,444,225    6,444,225  
  Other assets    123,722    125,543  
  Operating Lease ROU Assets, net   172,404    311,717  
        
  Total other assets   7,908,003    9,271,048  
        
  Total assets$  24,817,135 $  22,875,634  
        
Liabilities and Stockholders' Equity      
 Current liabilities     
  Accounts payable $  13,102,216 $  4,377,805  
  Accrued expenses   2,936,196    4,610,146  
  Other current liabilities   658,434    3,571  
  Deferred revenue   100,000    264,493  
  Operating lease liabilities   184,724    307,536  
  Note payable, net of discount   1,154,614    -   
  Warrant liability   145,564    174,684  
        
  Total current liabilities   18,281,748    9,738,235  
        
 Long-term liabilities     
  Operating lease liabilities   -     27,062  
  Other liabilities   5,850    7,644  
        
  Total long-term liabilities   5,850    34,706  
        
  Total liabilities   18,287,598    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 June 30, 2019; and   
  25,529,078 December 31, 2018, respectively   25,642    25,529  
  Additional paid-in capital   187,862,312    185,983,896  
  Accumulated deficit   (181,358,417)   (172,906,732) 
        
  Total stockholders' equity    6,529,537    13,102,693  
        
  Total liabilities and stockholders' equity $  24,817,135 $  22,875,634  
        


SITO Mobile, Ltd. 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(UNAUDITED) 
            
    For the Three-months ended For the Six-months ended 
    June 30, June 30, 
    2019  2018  2019  2018  
Revenue         
 Media placement$  13,892,216 $  8,428,564 $  22,322,592 $  19,573,216  
 Total revenue   13,892,216    8,428,564    22,322,592    19,573,216  
            
Cost of Revenue         
 Cost of revenue   9,414,674    4,402,154    14,987,411    11,100,030  
 Gross profit   4,477,542    4,026,410    7,335,181    8,473,186  
            
Operating Expenses         
 Sales and marketing   3,355,001    5,512,821    7,393,117    10,781,989  
 General and administrative   2,564,711    4,423,630    5,965,883    9,364,096  
 Depreciation and amortization   173,799    171,536    322,625    357,341  
 Loss on impairment of long-lived assets   2,088,820    -     2,088,820    -   
 Total operating expenses   8,182,331    10,107,987    15,770,445    20,503,426  
            
  Loss from operations   (3,704,789)   (6,081,577)   (8,435,264)   (12,030,240) 
            
Other Income (Expense)         
 Gain on revaluation of warrant liability   348,881    334,304    29,120    975,520  
 Other income   16,894    31,551    17,282    117,630  
 Interest (expense) income, net   (60,151)   1,919    (60,306)   5,893  
            
  Loss before income taxes   (3,399,165)   (5,713,803)   (8,449,168)   (10,931,197) 
            
  Income tax expense   (3,037)   (22,059)   (2,517)   (53,444) 
            
  Net loss$  (3,402,202)   (5,735,862)   (8,451,685)$  (10,984,641) 
            
 Basic and diluted net (loss) per share$  (0.13)   (0.23)   (0.33)$  (0.45) 
            
 Basic and diluted weighted average shares outstanding  25,641,812    25,128,681    25,593,853    24,430,373