VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2012) - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX VENTURE:OM), the provider of the leading web-based real estate transaction platform and the creator of the largest and fastest growing online community of conveyancing professionals, announced today its financial results for the three months period ended September 30, 2012. All figures are reported in Canadian dollars.
The first quarter saw the Company continue to build its membership and brand by concentrating on adding new users and increasing revenue in spite of the real estate market contraction of 14% of MLS® listed sales compared to the same period a year ago.
First Quarter Operational Highlights
- MLS® listed sales in BC decreased 14% from 19,032 to 16,358 from Q1 of fiscal 2012.
- Q1 revenue increased at a slower pace of 13.6% or $80,000 from $587,000 to $667,000 from fiscal 2012.
- Transactional volume increased 14% or 2,656 from 19,152 to 21,808. Daily average revenue increased 15% or $1,363 from $9,090 to $10,435.
- Member firms increased 20% or 108 from 542 to 650 and our retention rate continues to be strong at 99% of user/members for Q1 of fiscal 2013.
- Ongoing business expenses increased from $621,000 to $843,000 from Q1 of fiscal 2012 as a result of the expansion of the sales team and non-recurrent restructuring costs.
- Losses decreased to ($176,000) from ($262,000) in Q4 of last fiscal but higher than Q1 of last year ($34,000) on the back of BC market softening and ($125,000) restructuring costs.
Fiscal 2013 Q1 Financial Summary
|Net Income (loss)||$||(176,000||)||$||(33,000||)||433.3||%|
|Net Income (loss) p/s||$||0.00||$||0.00||0||%|
Operations in British Columbia
In the past, the Company has been enjoying continuous growth in British Columbia on the back of moderate organic expansion and a buoyant real estate market. Until recently, OneMove has not expanded aggressively into other jurisdictions and, as a result, its topline results are exposed to the fluctuations in the number of real estate transactions of its home market.
The results for this quarter have been negatively affected by the recent downturn in the British Columbia real estate market. According to the Real Estate Board of Greater Vancouver, the region where most of the real estate transactions occur in the province, the number of home sales plunged by 30% in August of this year compared to the same month last year. This decline, which is unusual in what is normally a strong month, affected our September financial results and it is expected that further real estate market weakening may continue to affect our financial results for the rest of the year.
That trend continued in September with some signs of relief in October where, according to the British Columbia Real Estate association, the number of MLS transactions was 10% lower than last year for the month of October. The downturn also negatively affected the dollar volume of homes sold through the MLS in the province by 15%.
According to analysts, the softening of the market seems to be due to the tighter mortgage credit regulations and it is unclear whether this will affect the market permanently and whether the number of transactions will keep declining or rebound in the future. Unless there is a visible correction in November, this uncertainty is expected to last until next spring when the real estate market normally picks up again during its regular observed cycle.
This uncertainty will affect our ability to forecast as we enter into the slow winter months. As a large majority of our sales are in BC, this downturn has affected our financials for this quarter and will affect our results for Q2 significantly thereby reducing our cash position.
Operations in Alberta
Due to the lack of resources, the Company has not expanded its sales base as quickly as it otherwise could have. The launch in Alberta was relatively late and was only supported by a low number of sales reps with little marketing budget. As a result, the Company is today significantly exposed to fluctuations in the number of real estate transactions in BC, the market where most of its revenues are derived.
Management has recently increased the pace of expansion by significantly increasing the number of sales reps and trainers and adding a marketing manager function to oversee all strategic communication initiatives. Most of the Company's commercial efforts are now in the province of Alberta, which is currently enjoying a buoyant real estate market on the back of the oil and gas industry. We are also working on further national and international expansion initiatives.
All these initiatives, however, will not immediately affect the bottom line. New sales staff needs to be trained and the average sales cycle (the time it takes to bring a customer from the initial sales call, to demonstration, to training and to billing) is several months. The marketing plans will also take several months to be designed, tested and implemented. Taking all these factors into account, it is expected that the investments in Alberta will increase the bottom line by spring of next year.
The current management team is working on finalizing the restructuring of the Company and exploring the different options available to the Company for expansion. The restructuring affected the bottom line with non-recurring severance payments, advisory fees and higher than normal legal expenses. Due to the restructuring costs, the combination of the real estate market downturn and the low seasonality of the winter months, management anticipates the need to raise funds early next year.
As part of his contract, Serge Salager, the Company's new CEO was granted 545,176 stock options on October 29, 2012 at an exercise price of $0.35 and expiration date in August 2017.
** EBITDA is used internally by the Company to compare cash operating resulted from one period to another. EBITDA for the purposes of this analysis also excludes stock based compensation, shares issued for services and "Other income/losses" per the financial statements. EBITDA does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
About OneMove Technologies Inc.
OneMove Technologies Inc. (TSX VENTURE:OM) is the leading provider of web-based real estate transaction platforms and the creator of the largest and fastest growing online community of conveyancing professionals. Through econveyance™, its proprietary web-based conveyancing software solution, OneMove™ simplifies and expedites the process of buying and selling real estate. Econveyance connects all participants in the property transfer process, offering a secure and efficient means of completing the transaction online. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.com. Professional users site www.econveyance.com.
Forward Looking Statements
This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and OneMove Technologies Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.