TORONTO, ONTARIO — (Marketwire) — 03/30/12 — Cyberplex Inc. (TSX: CX) a leader in online publishing and customer acquisition strategies today announced its financial results for the fiscal year and fourth quarter-ended December 31, 2011. Total revenue for the year was $55.5 million a decrease from the $106.9 million recorded in 2010, and the adjusted EBITDA for the year was $1.1 million as compared to $4.7 million for the prior year.
“Our financial results reported today and the financial update provided last month reflect continued difficulties associated with the Tsavo Media division. While Tsavo continued to work hard to innovate and adapt to the rapidly changing Yahoo! – Bing marketplace, traffic sources and traffic quality became a concern for Yahoo! in the fourth quarter and resulted in lower revenues and ultimately the previously announced Yahoo! charge,” said Geoffrey Rotstein, Chief Executive Officer of Cyberplex. “During this same period, we saw significant progress out of our interactive, performance marketing and media buying divisions, with both operational and financial improvements across these divisions. While these improvements may not be readily apparent in light of the Tsavo situation, they are significant to the overall progress of Cyberplex and our ability to generate meaningful returns in the coming quarters.”
Results for the Fourth Quarter ended December 31, 2011
The Company noted that as a result of the retroactive Yahoo! charge against the Tsavo division previously reported by the Company on February 6, 2012, and the diminished performance by Tsavo in the fourth quarter which continued into 2012, Tsavo will likely not remain in compliance with all of the financial covenants set out in the credit facility with American Capital as at the March 31, 2012 measurement date. The Special Committee of the Board of Directors of Cyberplex that was formed to evaluate strategic alternatives for Tsavo, as announced in the Company-s material change report and press release of February 6, 2012, has been in contact with American Capital and is considering, as part of its mandate, possible courses of action to address this issue for the benefit of Cyberplex shareholders. The Special Committee-s review of the status of Tsavo and the strategic alternatives available to Cyberplex to create shareholder value out of that division and its recommendation to the Board of Directors in relation to its mandate has not yet been concluded.
“While difficulties at Tsavo and with American Capital, Tsavo-s lender, have overshadowed many of the accomplishments within the organization in the past, we do not intend to allow this to continue to define Cyberplex and our prospects for growth and success.” said Geoffrey Rotstein. “Cyberplex is a leader in our industry, and competes favourably against much larger, less agile media organizations. While our fourth quarter set-backs are not yet resolved to our satisfaction, we are committed to generating significant shareholder value in 2012 from both the investments we have made in our traffic acquisition platforms, and a favourable resolution of the ongoing strategic review of Tsavo.”
Non-IFRS Financial Measures
This press release includes a discussion of “Adjusted EBITDA,” which is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net loss from operations before; (a) depreciation of property and equipment and amortization of intangible assets; (b) stock-based compensation expense, (c) restructuring and acquisition costs, (d) Impairments of goodwill and intangible assets and other items, net. Management uses Adjusted EBITDA as a measure of the Company-s operating performance because it provides information related to the Company-s ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in accordance with the Company-s consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company-s consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies- non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company-s non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
About Cyberplex
Cyberplex Inc. () is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, connects advertisers to their most relevant online customers and prospects. Cyberplex delivers targeted, high quality results through online, mobile and social initiatives that improve advertiser ROI, monetize the value of online properties, and build loyal online audiences.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on management-s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Contacts:
Cyberplex Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
You must be logged in to post a comment Login