TORONTO, ONTARIO--(Marketwired - May 6, 2013) - DealNet Capital Corp. (the "Company") (CNSX:DLS)(GAIMF) is pleased to report financial and operating results for the fifteen months ended December 31, 2012. The Company's audited consolidated financial statements and related management's discussion and analysis for the fifteen months ended December 31, 2012 have been filed and are available on SEDAR at www.sedar.com.
Fiscal Year End Highlights
- Change of fiscal year end from September 30 to December 31 to better align financial reporting with the Company's key operating subsidiary.
- Strengthened board and management with key hires:
- Bob Cariglia - President
- Mike Hilmer - COO
- Ashish Kapoor - CFO
- Rick Henry - VP Finance
- Material new contracts launched at the Company's subsidiary, OC Communications Group Inc. ("OCCGI"), leading to a strong last quarter in terms of revenue earned.
- Closed the acquisition of OCCGI on May 24, 2012.
- Company acquired an onshore Business Process Outsourcing (BPO) company closing the year with operations in three locations:
- Toronto, ON
- Ft Meyers, FLA
- Reno, NV
- Considerable brand equity in the boutique call center space.
- Brand name clientele in both Canada and the United States.
- Strong funnel of bid opportunities with key brands.
- Following the acquisition OCCGI closed and launched additional material new business resulting in strong gross margins for the three months ended December 31, 2012.
|Total revenues||$ 1,457,000||$ 2,176,000||$ -|
|Net (loss) income and comprehensive (loss) income||(263,000)||(1,518,000)||27,000|
|Income (loss) per share - basic||(0.005)||(0.054)||(0.002)|
|Income (loss) per share - diluted||(0.005)||(0.054)||(0.002)|
Net income includes a one time expense of $468,000 relating to the vested stock options issued under the Company's stock option plan. Net income for the three months ended December 31, 2012 without the one time charge was $205,000.
|December 31, |
|September 30, |
|Shareholders' equity (deficit)||$||383,000||$||(1,164,000||)|
"We are pleased to release our audited consolidated financial statements for fiscal 2012," stated Graham Simmonds, Chairman and Chief Executive Officer of DealNet Capital Corp. "We have experienced better than expected growth in the last quarter which serves to provide a healthy foundation to further develop our existing BPO business and roll out of our consumer financing suite of services targeting the HVAC industry," he added.
Management believes the Company is well positioned to strategically focus investments on and grow recurring revenue businesses. The Company continues to execute its strategy to leverage the BPO subsidiary to enter the consumer financing market as both a provider of alternative financing as well as other services critical to consumer finance companies. Management expects the initiative to be gross margin accretive shortly after being launched.
Over the past twelve months, the Company has been actively developing a strategy and business model to provide a full suite of comprehensive services and financing solutions to independent Heating, Ventilation and Air Conditioning ("HVAC") dealers and their customers. On January 24, 2013, One Dealer Inc., the Company's wholly owned subsidiary, announced the signing of a strategic Memorandum of Understanding ("MOU") with a large North American HVAC equipment distributor. Both parties have continued to work together and have collaborated with select reputable HVAC dealers to develop the service and financial offerings of the One Dealer program. The resulting program is a unique bundled solution designed to empower small to mid-sized HVAC and home comfort dealers with services that were historically only offered by the largest of the home comfort brands. The service offering includes HVAC equipment underwriting, wholesale product supply, logistical support, customer care, extended warranty products and marketing services.
DealNet Capital Corp. is a public company that trades under the symbol DLS on the Canadian National Stock Exchange and under the symbol GAIMF on the Pink Sheets of the Over the Counter Bulletin Board. In general, the Company is a merchant banking company that has a flexible investment mandate with a strategic focus on recurring revenue businesses. The company has recently focused its investments towards the thriving North American Business Process Outsourcing (BPO) Market as well as the Consumer Financing Market by leveraging its recently acquired BPO division. The Company continues to look for acquisition opportunities in these key markets in order to continue to drive competitive advantages and growth.
ON BEHALF OF DEALNET CAPITAL CORP.
For additional information please visit www.sedar.com.
This press release contains forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address the Company's expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect management's current view of future events and are subject to certain risks and uncertainties as contained herein and in the Company's other filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual results could differ materially from those anticipated in these forward-looking statements. Management undertakes no obligation to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. The forward-looking statements made in this press release describe our expectations as at April 30, 2013.