Kaboose Inc. News
Kaboose Reports Record First Quarter 2008 Results with Revenues of $18.45 Million and EBITDA of $1.56 Million
Financial Highlights for the Quarter - Revenue in the first quarter was $18.45 million, compared to $6.58 million in the same quarter last year, an increase of 180%; - EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, restructuring and other non-recurring charges) was $1.56 million, compared to $0.14 million in the same quarter last year; - Net loss for the quarter was $3.79 million or $0.03 per share, compared to a loss of $0.09 million or nil cents per share in the first quarter of fiscal 2007; net loss for the first quarter of fiscal 2008 included amortization related to previous acquisitions of $3.60 million and restructuring and other non-recurring charges of $1.26 million, compared to amortization of $0.85 million and restructuring charges of nil in the first quarter of 2007; and - Balance sheet as at March 31, 2008 remains strong with cash and cash equivalents totaling $14.34 million and bank debt totaling $24.83 million.
"We are pleased with our first quarter results, which were marked by the Bounty Group's first full quarter of operations under the Kaboose banner," said
Mr. DeZwirek continued, "Our properties, in what is typically a slow period for audience engagement, achieved record highs for key user metrics, including the number of unique visitors, page views and new user registrations. While the current state of the U.S. economy coupled with the depreciation of the U.S. dollar produced slower growth for parts of our North American business, this was offset by better-than-expected results from our U.K. operations. Additionally, we are excited by the strength of our traffic outside of the U.S., which grew 24% year-over-year and now represents 40% of total traffic."
Operational Highlights for the Quarter - Advertising clients whose campaigns ran in the quarter included top Fortune 500 companies such as Bristol-Myers Squibb, Fidelity, Forest Laboratories, General Mills, GlaxoSmithKline, Hewlett-Packard, Johnson & Johnson, Kimberly-Clark, Mazda, Procter & Gamble, Reckitt Benckiser, Sony, Target, Unilever, Walgreens, Wal-Mart and The Walt Disney Company; - Bounty extended its relationship with two key customers: ASDA, a Wal- Mart company and the second largest grocer in the U.K., and Johnson & Johnson, one of the U.K.'s principal manufacturers of baby care products; - For the second year in a row, Kaboose's scrapbooking site, TwoPeasInABucket.com, was named the Top Internet Site and Top Internet Retailer in Creating Keepsakes Readers' Choice Awards; - In February 2008, Bounty launched a new online and offline financial service for families, called Bounty Money, which was developed in partnership with Skipton Building Society, one of the largest financial services providers in the U.K.; - In March 2008, Kaboose announced its intention to make a normal course issuer bid, such that, during the twelve-month period commencing March 10, 2008, it could repurchase up to 7,012,195 common shares at market prices; - Also in March 2008, Chairman and CEO Jason DeZwirek, President and COO Craig Wallace and other insiders purchased over 1.15 million common shares of Kaboose in the open market; and - In March 2008, BabyZone.com was relaunched with a new look and feel that offers a more personalized experience for new and expecting mothers.
Mr. DeZwirek concluded, "Kaboose is very well-positioned to execute on our vision to become the world's favorite parenting resource and the first choice for leading global advertising brands targeting our highly-coveted audience of young families. Given the strength of our assets, the millions of people who visit our properties and use our products and services every month, and our hundreds of blue-chip advertising clients, we are more excited than ever about our future."
Financial Summary ————————————————————————————————————- Three-month period Income Statement Data ended March 31 (in $ millions) 2008 2007 ————————————————————————————————————- Revenue $18.45 $6.58 EBITDA(1) 1.56 0.14 Net loss (3.79) (0.09) ————————————————————————————————————- (1) Reconciliation of EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, restructuring and other non-recurring charges), as reported above, to generally accepted accounting principles (GAAP). Loss for the three-month periods ended March 31, 2008 and 2007 are shown below (all numbers expressed in millions). ————————————————————————————————————- Three-month period ended March 31 (in $ millions) 2008 2007 ————————————————————————————————————- Net loss $(3.79) $(0.09) Add/(Deduct) Amortization 3.60 0.85 Interest, net 0.36 (0.21) Restructuring and other non-recurring charges 1.26 - Tax credits - (0.42) Recovery of income taxes (0.81) (0.22) Foreign currency gain (0.14) - Stock-based compensation 1.08 0.23 ————————————————————————————————————- EBITDA(1) $1.56 $0.14 ————————————————————————————————————- (1) Kaboose presents EBITDA information as a supplemental figure because management believes it provides useful information regarding operating performance. EBITDA is not a recognized measure under Canadian GAAP, does not have standardized meaning, and is unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. Conference Call
Kaboose will host a conference call today at
The first quarter financial statements and related management's discussion and analysis are available for review on the Company's corporate website (http://corporate.kaboose.com) on the Investor Relations - Financial Reports page.
About Kaboose Inc.
Kaboose is one of the largest family-focused new media companies in the world and one of the top-five most visited family destinations online. From pregnancy to parenting, birthday parties to scrapbooking, and entertainment to education, Kaboose has the content and applications to help parents plan and share their family life. Kaboose owns some of the world's leading online properties targeting families, including Bounty.com, BabyZone.com, Kaboose.com, AmazingMoms.com, TwoPeasInABucket.com, BubbleShare.com, BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose trades on the Toronto Stock Exchange under the symbol "KAB."
This document may contain forward-looking statements relating to Kaboose Inc.'s operations or to the environment in which it operates, which are based on Kaboose Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.'s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Kaboose Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Kaboose Inc.
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