Normalized EBITDA earnings amid a very challenging environment
TORONTO, Aug. 20, 2020 (GLOBE NEWSWIRE) — YANGAROO Inc. (“Yangaroo”, “Company”), (TSX-V: YOO, OTCBB: YOOIF), the software leader in work-flow management and media distribution solutions, today announced its results for the quarter ended June 30, 2020. The full text of the Financial Statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com. Please note that all currency in this press release is denominated in Canadian dollars.
Consolidated revenue for the second quarter of 2020 was $1,586,695 compared to $1,987,636 and $2,372,767 in the second quarter of 2019 and first quarter of 2020, respectively. The Company generated normalized EBITDA of $118,700, inclusive of CEWS payments, during the quarter ended June 30, 2020, in comparison to a normalized EBITDA of $147,012 in the prior year quarter ended June 30, 2019 and normalized EBITDA of $560,043 in the first quarter of 2020 ended March 31, 2020. The decrease in revenue and normalized EBITDA in Q2’2020 is primarily attributed to decreased Advertising and Awards Division revenue resulting from an advertising industry wide slump and deferral of award shows to the second half of 2020. The decrease in revenues in the Advertising and Awards Divisions were wholly attributed to the global COVID-19 pandemic that began in late Q1’2020. Music Division revenue increased during these comparison periods and partially helped off-set the overall revenue decrease. Additionally, government wage subsidies and cost management initiatives partially off-set the decrease in normalized EBITDA earnings during the quarter.
“The second quarter of 2020 was a very challenging and unprecedented time for our industry and economy”, stated Gary Moss, CEO and President of Yangaroo. “The broad economic impact of the pandemic resulted in an immediate contraction in the advertising industry. While retail, hospitality and travel industries were severely impacted, cancellation of live televised sporting events had a broader effect on marketing spends. The gradual reopening in select communities, coupled with the resumption of some live sports in May and June, seems to have created a bottom to this slump. We have seen signs of resumption in advertising campaigns across a broad spectrum of clients, although it’s too soon to predict when the resulting revenues will reach pre-pandemic levels. Awards division revenues dropped as many of our clients deferred award shows to the third and the fourth quarter of 2020, however, we expect to recover all Awards show revenue in the second half of 2020. Finally, our Music Division revenues was a bright spot for Yangaroo as our customers increased their usage of the platform resulting in 15% revenue growth quarter over quarter and prior-year quarter.”
Gary Moss further added, “Notwithstanding the challenging slump experienced in our Advertising and Awards divisions, Yangaroo was able to deliver positive normalized EBITDA of $118,700 for the second quarter. This is attributed to our cost management initiatives and wage subsidies received from the Canadian Government’s CEWS program. We had qualified for and participated in the CEWS program in the second quarter of 2020, which allowed us to avoid job cuts in these tough times.”
Anthony Miller, Chair of the Board of Directors of Yangaroo, added, “We must acknowledge that it has only been funds from the Federal Government’s CEWS program that has enabled us to protect our employees during this unprecedented time, for that both management and employee families are thankful.”
“Yangaroo entered the second half of 2020 with increased confidence about the state of our business and future prospects,” Gary Moss stated. “We have a very strong cash, working capital, and liquidity position. In the second quarter we increased our Revolving Loan Facility to $1,000,000 and have strengthened our banking relationships. Finally, we will continue to evaluate and be opportunistic with non-organic growth opportunities.”
As at June 30, 2020, the Company had a working capital surplus of $2,722,393. The Company’s share buy-back program is currently suspended, however, it will be evaluated on an on-going basis.
Summary of operating results for the periods ended, and as at, June 30th:
|(Canadian Dollars)||Three Months||Six Months|
|Normalized EBITDA (loss)||$||118,700||$||147,012||$||678,743||$||(17,858||)|
|Net Income (loss)||$||(69,869||)||$||(90,872||)||$||558,740||$||(468,326||)|
Yangaroo is a software leader in work-flow management for advertising, music, and awards industries. YANGAROO’s patented Digital Media Distribution System is a leading secure business to business cloud-based solution that provides clearance, delivery, and secure API integration for various work-flow challenges in media distribution.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
For YANGAROO Investor Inquiries:
Phone: (416) 534-0607
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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