BETHESDA, MARYLAND--(Marketwired - Sept. 1, 2015) - Snipp Interactive Inc. ("Snipp" or the "Company"), an international provider of promotions marketing, rebates and loyalty solutions listed on the TSX Venture Exchange (TSX VENTURE:SPN), is pleased to announce its second quarter fiscal 2015 results for the quarter ending June 30, 2015. All results are reported under International Financial Reporting Standards ("IFRS") and in both Canadian dollars and US dollars. Snipp reports Q2 2015 revenue of CAN$3.3 million (US$2.7 million), adjusted EBITDA of CAN$0.6 million (US$0.5 million) and net income of CAN$1.6 million (US$1.3 million). A copy of the complete unaudited financial statements and management's discussion and analysis are available on SEDAR (www.sedar.com).
Q2 2015 Financial Summary
(Refer to Non-GAAP Measures, EBITDA/Adjusted EBITDA and Gross Margin discussion below)
Corporate Highlights
"Q2 was an excellent quarter. Snipp was able to demonstrate profitability, an extremely high margin and strong sales growth. The integration of our two acquisitions earlier in the year have proceeded extremely smoothly and have started to generate considerable value for the Company. We have a record sales pipeline today in excess of CAN $22 million, the majority of which is loyalty-related work, practically all of which utilizes our SnippCheck receipt processing solution - a great testament that both our strategy and execution for our acquisitions was on the money. We expect to continue to build on our sales momentum for the rest of the year and further accelerate our growth," stated Atul Sabharwal, CEO of Snipp.
Non-GAAP Measures
Snipp uses certain performance measures throughout this document that are not recognizable under Canadian generally accepted accounting principles or IFRS ("GAAP"). These performance measures include EBITDA, adjusted EBITDA, and Gross Margin. Management believes that these measures provide supplemental financial information that is useful in the evaluation of the Company's operations.
Investors should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP and IFRS as an indicator of Snipp's performance. The Company's method of calculating these measures may differ from that of other organizations, and accordingly, these may not be comparable.
EBITDA / Adjusted EBITDA
EBITDA, defined as earnings before interest, taxes, stock-based compensation, depreciation and amortization, is not a financial measure that is recognized under GAAP. Investors should be cautioned that EBITDA should not be construed as an alternative measure to net earnings determined in accordance with GAAP. Adjusted EBITDA removes one time legal expenses associated with the acquisition of Hip Digital (the "Hip Digital Acquisition") that closed on June 10, 2015.
The following is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:
Three months ended June 30, 2015 | ||||||||
CAD | USD | |||||||
Operating income (loss) (1) | $ | (97,118 | ) | $ | (78,996 | ) | ||
Add: | ||||||||
Depreciation | $ | 4,404 | $ | 3,582 | ||||
Amortization | $ | 35,455 | $ | 28,839 | ||||
Stock-based compensation | $ | 436,513 | $ | 355,062 | ||||
EBITDA | $ | 379,254 | $ | 308,487 | ||||
Add: adjustment for one time professional fees (Hip Digital Acquisition legal expenses) | $ | 248,503 | $ | 202,134 | ||||
Adjusted EBITDA | $ | 627,757 | $ | 510,621 |
Notes:
(1)The Company defines operating income (loss) as net income (loss) before interest income, foreign exchange, loss on marketable securities, change in fair value of derivative liability, change in fair value of acquisition consideration payable in equity.
Gross Margin
Snipp defines Gross Margin as revenue less campaign infrastructure. The Company's calculation of Gross Margin is not a financial measure that is recognized under GAAP. Investors should be cautioned that the Company's defined Gross Margin should not be construed as an alternative measure to other measures determined in accordance with GAAP.
The following is a calculation of Gross Margin:
Three months ended June 30, 2015 | Three months ended June 30, 2014 | |||||||
CAD | USD | CAD | USD | |||||
Revenue | $ | 3,330,799 | $ | 2,709,288 | $ | 450,643 | $ | 413,358 |
Less: | ||||||||
Campaign infrastructure | $ | 363,740 | $ | 295,868 | $ | 114,358 | $ | 104,896 |
Gross Margin | $ | 2,967,059 | $ | 2,413,420 | $ | 336,285 | $ | 308,462 |
Exchange rates used for USD to CAD based on Bank of Canada rates:
1.2294 Three months ended June 30, 2015 (average) |
1.2352 Six months ended June 30, 2015 (average) |
1.0902 Three months ended June 30, 2014 (average) |
1.0968 Six months ended June 30, 2014 (average) |
1.2490 as at June 30, 2015 |
For More Information
In conjunction with this announcement, Snipp management will be holding a conference call on Tuesday September 1, 2015, at 10:00 A.M. Eastern Standard Time to discuss the Company's results for Q2 fiscal 2015.
Q2 2015 CONFERENCE CALL DETAILS:
DATE: | Tuesday, September 1, 2015 | |
TIME: | 10:00 A.M. EST | |
DIAL IN NUMBER: | Local / International: 647-788-4922 North American Toll Free: 877-291-4570 |
|
REPLAY NUMBER | Local / International: 416-621-4642 North American Toll Free: 800-585-8367 |
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Conference ID: 19295339 | ||
WEBCAST | http://www.gowebcasting.com/6859 |
About Snipp:
Snipp's technology platform enables brands to drive customer engagement and purchase. Our solutions include loyalty, rebates, receipt processing, promotions, and data analytics. We provide our clients with a full spectrum of services including creative, program conceptualization, technology, legal, rewards provisioning, fulfillment and reporting. We have created hundreds of cutting-edge programs for Fortune 500 brands and world-class agencies.
Snipp is headquartered in Washington, DC, with offices across the United States, Canada, Ireland, the Middle East and India. We are a publicly listed company and were selected to the TSX Venture 50® for 2015, a collection of the strongest companies on the TSX Venture Exchange.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the Company or the materials required to produce those products, labor relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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