TORONTO, July 24, 2020 (GLOBE NEWSWIRE) -- ZoomerMedia Limited (TSXV:ZUM) (the “Company”), the leader in serving the interests of the 45+ “Zoomer” market in Canada, today announced its financial results for the third quarter ended May 31, 2020.
For the nine months ended May 31, 2020 the Company generated revenues of $40.1 million, operating expenses of $31.5 million and Adjusted EBITDA of $8.6 million from its continuing operations. Net income for the same period was $3.0 million.
For the comparative nine months ended May 31, 2019 the Company had revenues of $39.1 million, operating expenses of $35.6 million and Adjusted EBITDA of $3.4 million from its continuing operations. Net income for the nine months was $1.4 million.
On May 18, 2020 the Company announced that it had entered into an agreement with Irish Studios LLC for the sale of substantially all of the net assets comprising the operations of Darwin CX, the Company’s Software-as-a-Service (“SaaS”) division. The transaction is expected to close on or around August 17, 2020. As Darwin CX has been classified as held-for-sale tor the period ended May 31, 2020, its financial results have been presented separately from the result of the Company’s continuing operations in the consolidated financial statements. For comparative purpose, the financial results for the prior year has been restated. Darwin CX’s net loss for the nine months ended May 31, 2020 and 2019 were $0.3 million and $0.9 million respectively.
EBITDA and Adjusted EBITDA are non-IFRS earnings measures which do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA or Adjusted EBITDA presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA excludes the gain on sale of property and the unrealized gain or loss on equity instruments. These measures are important to management since they are used by potential investors to evaluate the Company’s operating performance and ability to incur and service debt, and as a valuation metric. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.
Detailed financial information and Management’s Discussion and Analysis for the nine months ended May 31, 2020 can be found on SEDAR’s website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the interim consolidated financial statements for the six months ended May 31, 2020, including the notes thereto.
About ZoomerMedia Limited
ZoomerMedia is a multimedia company that serves the 45plus “Zoomer” demographic through television, radio, magazine, internet and trade shows. ZoomerMedia’s television properties include; Vision TV, Canada’s only multi-faith specialty television service; ONE: Get Fit, offering programs on exercise, meditation, yoga, natural health and living a planet-friendly lifestyle; JoyTV in Vancouver, Victoria, Surrey and the Fraser Valley, FAITH TV, a lifestyle television service out of Winnipeg devoted to broadcasting Christian programming and is available in approximately 6 million Canadian homes, and TVL Channel 5, a linear television channel guide available to Rogers households in Ontario and New Brunswick. ZoomerMedia’s radio properties include CFMZ-FM Toronto – The New Classical 96.3FM, CFMX-FM Cobourg – The New Classical 103.1FM, CFMO-FM – Collingwood – The New Classical 102.9FM, Canada’s only commercial classical music radio stations serving the Greater Toronto Area (GTA), eastern Ontario and Collingwood, CFZM-AM 740 Toronto and CFZM-FM 96.7FM Toronto – Zoomer Radio, Toronto’s “Timeless Hits” Station. ZoomerMedia also publishes ZOOMER Magazine, the largest paid circulation magazine in Canada for the mature market, as well as On The Bay Magazine, a regional lifestyle magazine published quarterly for the 20 towns and villages of Southern Georgian Bay, Ontario. ZoomerMedia is Canada’s leading provider of online content targeting the 45plus age group through many properties, the key one being www.EverythingZoomer.com. ZoomerMedia has trade show and conference divisions that produce the ZoomerShows, annual consumer shows directed to the Zoomer demographic and ideaCity, an annual Canadian conference also known as 'Canada's Premiere Meeting of the Minds'. ZoomerMedia also has a software-as-a-service (SaaS) platform called Darwin CX, which launched in September 2018, that manages customer experience orchestration for external clients.
Cautionary note on forward looking statements
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements made in this report are ‘forward-looking statements’ which may include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words ‘believe’, ‘anticipate’, ‘expect’, ‘estimate’, ‘project’, ‘will be’, ‘will continue’, ‘will likely result’ or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in filings by ZoomerMedia Limited with provincial securities commissions. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, the following:
- the risks inherent in magazine publishing;
- the risks inherent in the operation of Internet media properties;
- the risks inherent in the operation of television broadcast properties;
- the risks inherent in the operation of radio broadcast properties;
- the risks inherent in the operations of affinity partners with respect to royalty revenue;
- the risks inherent in the operation of consumer shows generally,
- the competition within the media industry for the baby boomer generation’s business;
- the risks associated with governmental regulation of the publishing, internet, radio broadcasting and television broadcasting businesses;
- the results of legal claims made by or against the Company;
- the dependence of the business on the continuing operation of its computer systems; and
- the dependence of the business on key personnel.
Given these risks, and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. ZoomerMedia Limited does not intend and does not assume any obligation to update these forward-looking statements.
For further information, please contact:
|Terence Chan |
Chief Financial Officer
|Leanne Wright |
Vice President Communications