Toronto, Ont. – April 28, 2014 – UpSnap Inc. (CSE: VVX) (“UpSnap” or the “Company”), a leading provider of mobile advertising solutions, today announced its fourth quarter (Q4) financial results for the three and twelve-month periods ended December 31, 2013.
“With the capital re-structuring and the funds received at the end of Q3, we were able to overcome the working capital requirements needed to derive our mobile advertising revenue during Q4 and saw over 30% year over year growth in our mobile advertising products,” said Bruce Howard, CEO of UpSnap “The strategic investment by User Friendly Media and the additional capital injection puts us in even a stronger financial and working capital position to continue and accelerate our mobile advertising revenue growth in upcoming quarters. We have also begun to broaden our revenue streams, which include subscription and performance-based models to improve the Company’s revenue and cash flow predictability, as well as the Company’s effectiveness in providing solutions that are tailored to the needs of all business verticals. This further positions us to benefit from the rapidly expanding mobile advertising market.”
Annual Financial Highlights
• Total operating revenue of $3.52 million for FY 2013, compared to $3.99 million in FY 2012.
• Mobile advertising revenue grew to $2.26 million for FY 2013, compared to $1.74 million in FY 2012.
• Total operating cost of $6.89 million for FY 2013, compared to $11.18 million in FY 2012.
• Total long term liabilities of $0.56 million for FY 2013, compared to $10.95 million for FY 2012.
Fourth Quarter Financial Highlights
• Total operating revenue of $0.85 million for Q4 2013, compared to $0.78 million for Q4 2012.
• Mobile advertising revenue grew to $0.55 million for Q4 2013, compared to $0.46 million in Q4 2012.
• Total operating cost of $1.92 million for Q4 2013, compared to $2.75 million in Q4 2012.
• Investment in development and launch of VVX Local product during Q4 significantly improved Company’s performance during the quarter.
• Converted over 95% of the Company’s outstanding debentures into Common Shares and raised gross proceeds of $1.6 million in an equity private placement.
• Subsequent to the quarter and year-end, the Company raised additional $4.9 million by form of equity private placement, which included a strategic investment by User Friendly Media (UFM), allowing further investment in technology and in expanding the sales team to actively facilitate broadening the Company’s subscription and performance-based list of clients.
• Subsequent to the quarter and year-end, Bruce Howard, CEO of UFM, David Lambert, CFO of UFM, and Walter Andri joined the Company’s Board and in March 2014, Bruce Howard was appointed by the Company’s Board as the new CEO of UpSnap.
This news release should be read in conjunction with UpSnap’s audited financial statements and the accompanying notes, as at and for the quarter ended December 31, 2013, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the UpSnap website at www.UpSnap.com.
UpSnap is a leader in mobile advertising processing billions of transactions for a marquee list of global clients, agencies, advertisers and publishers. Our full service mobile ad network and campaign management platform drives precision-targeted local and national ad campaigns for brand promotion, brand engagement and lead-generation. Additionally, UpSnap provides platform services for ad serving, analytics, call tracking, and hyper local campaign targeting to a growing list of mobile ecosystem partners. Visit www.UpSnap.com for more information.
For further information, please contact:
Alex Pekurar, CPA, CA
Chief Financial Officer
Virtus Advisory Group Inc.
Caution Regarding Forward Looking Information
Certain information set out in this News Release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “hope”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “scheduled”, “believe” and similar expressions. The forward- looking information set out in this News Release relates to future events or our future performance and includes: (i) information concerning the effect of the debt conversion and new financing on revenue growth; (ii) the effect of broadening the Company’s revenue streams on revenue growth and predictability; (iii) the Company’s ability to succeed in the mobile advertising market and the effect of the financings on the Company’s efforts in that regard.
Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Forward-looking statements involve substantial known and unknown risks, uncertainties and other factors which cause actual results to vary from those express or implied by such forward looking statements. These statements should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved.
The forward-looking statements contained in this press release are made as of the date hereof and based on what management of the company believes are reasonable assumptions. The Company disclaims any intention or obligation to update or publicly revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Furthermore, the Company does not assume responsibility for the accuracy and completeness of the forward looking statements set out in this news release. The Company’s forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements.
The CSE has not reviewed, approved or disapproved the content of this press release.