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ID Watchdog Announces Updated Guidance for Fourth Quarter 2015 and First Quarter 2016DENVER, Jan. 20, 2016 /PRNewswire/ -- ID Watchdog, Inc. (TSX VENTURE: IDW) (OTC: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced that the Company is updating its revenue, operating income and Adjusted EBITDA guidance for the fourth quarter ending December 31, 2015 and also providing first quarter 2016 guidance. All amounts are in U.S. dollars. Fourth Quarter 2015 Updated Guidance For the fourth quarter, ID Watchdog now anticipates that revenue from our Employee Benefit Channel will be in the range of $1,080,000 to $1,120,000, which represents an increase ranging from 138% to 146%, compared to the fourth quarter of 2014. We anticipate that total revenue will be in the range of $1,430,000 to $1,490,000, which represents an increase ranging from 51% to 57%, compared to the fourth quarter of 2014. Also, ID Watchdog anticipates fourth quarter 2015 operating income margins will range from 7% to 9% of total revenues, with Adjusted EBITDA as a percentage ranging from 8% to 10% of total revenues. First Quarter 2016 Guidance
"We are projecting total revenue growth in 2015 over 2014 of approximately 55% and we are entering 2016 with record January customer enrollments in our Employee Benefits Channel. This will drive first quarter 2016 Employee Benefit Channel revenue growth of between 131% and 146% over the first quarter of 2015, with total revenues projected to increase by 87% to 97%. Also, as we progress through 2016, we anticipate very modest (1% to 2%) sequential quarterly revenue growth as compared to the levels projected for the first quarter of 2016," said Mike Greene, CEO of ID Watchdog. Mr. Greene continued, "During 2015, we made a number of enhancements to our identity theft service offerings, expanded our call center hours to 24/7, and made other investments to elevate our customer service. We will further enhance our identity theft protection offerings during 2016, which will increase our cost of service and cause a modest decline in our gross profit margin." "Also, we have been very successful in expanding our relationships with a number of the largest benefits brokers in the U.S., which also have many of the largest employers in the U.S. as their clients. We were successful in securing a number of these employers in 2015 and 2016, however, we anticipate the fees charged by these benefit brokers will result in an approximate 5% increase in benefit broker commission expenses, as a percent of Employee Benefit Channel revenue in the first quarter of 2016, as compared to the prior year." "In 2016, we will continue to enhance our service offerings, focus our sales efforts on establishing a leadership position with companies employing more than 10,000 employees and further expanding our sales and marketing team. In the long-run, this will allow us to continue to offer highly competitive identity theft protection services, aggressively expand our market share and ultimately drive improved gross profit and Adjusted EBITDA margins. In the short-run, these initiatives will put downward pressure on our gross profit and Adjusted EBITDA margins. Note that there are a number of expenses we expect to incur in the first quarter of 2016, related to securing, onboarding and registering the significant number of new customers we added in January, which we won't incur through the balance of 2016, but will serve to lower our first quarter Adjusted EBITDA margins, which we expect to be in the low single digits. As we progress through 2016 and beginning in the second quarter, we anticipate that our Adjusted EBITDA margins will expand allowing us to finish the year with Adjusted EBITDA margins in the high single digits for the full year." "In conclusion, we had a very successful 2015 and we are very excited about our prospects as we enter 2016 with a great strategy to expand our market share in a dynamic and rapidly growing industry segment. We are in the early stages of our January 2017 enrollment selling cycle, which is off to a very strong start and pacing ahead of last year," Greene concluded. About Non-IFRS Financial Measure To supplement the Company's consolidated financial results presented in accordance with International Financial Reporting Standards ("IFRS"), the Company reports "Adjusted EBITDA" (net income (loss) before deducting net interest expense, income tax expense, depreciation and amortization, share-based compensation, and gain (loss) on warrant liability) and uses this metric to measure the performance of our business. Adjusted EBITDA is not a performance measure defined under IFRS and is not considered an alternative to income from operations or net earnings (loss) in the context of measuring the Company's performance. Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable with similar measures used by other publicly traded companies. Adjusted EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, income taxes, interest payments, capital expenditures, debt principal reductions and other sources and uses of cash, and is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with IFRS. Financial information contained in this press release should be read in conjunction with the unaudited consolidated interim condensed financial statements and notes thereto included in our most recent annual and quarterly reports. These documents are available online at www.sedar.com and in the "Company Overview" section of our website at www.IDWatchdog.com. About ID Watchdog, Inc. ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com. Forward-Looking Statement This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. Such forward-looking statements include, but are not limited to, statements about: future revenue and the growth of revenue including growth from our Employee Benefit Channel; anticipated expenditures; our business strategies; our ability to grow in both the near and long term and the funding of our growth opportunities; the plans, objectives, expectations and intentions of the company regarding revenue growth; the Company's financial position including liquidity and financial capacity, and the future development of the company's business. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance Company's filings with Canadian regulators at www.sedar.com. Furthermore, the forward-looking statements and financial outlook contained in this release are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements and financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Company Contact: 
Logo - http://photos.prnewswire.com/prnh/20130829/NY71341LOGO To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/id-watchdog-announces-updated-guidance-for-fourth-quarter-2015-and-first-quarter-2016-300207392.html SOURCE ID Watchdog, Inc. 
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