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iLOOKABOUT Announces Financial Results for the Third Quarter Ended September 30, 2017TORONTO, Nov. 28, 2017 (GLOBE NEWSWIRE) -- iLOOKABOUT Corp. (TSXV:ILA) (“iLOOKABOUT” or “the Company”) today announced that its unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2017 and 2016, and the related Management’s Discussion and Analysis are available at www.sedar.com and on the Company’s website at http://www.ilookabout.com/investor-relations/financial-information. Shareholders may request a hard copy of this material by directing their request to: iLOOKABOUT Corp., Office of the CFO, 408-383 Richmond Street, London ON, N6A 3C4. “We are pleased to report this quarter that we have grown Revenue and Adjusted EBITDA in our core business on a year over year basis, recently renewed key long-term service contracts which generate recurring revenue for the Company, and have also launched a beta version of a mobile application for users of our GeoViewPortTM software suite,” said Laurence Rose, Chief Executive Officer of iLOOKABOUT. Mr. Rose also reported, “We ended the quarter with a strong Balance Sheet position including $7.4 million in cash which provides a solid foundation to explore for new business opportunities, launch new products geared toward a broader customer base, and expand into large addressable markets in the real estate technology space.” 2017 Third Quarter Significant Developments:
Subsequent to the third quarter of 2017, the Company executed a multi-year services contract renewal with MPAC to host and manage MPAC’s propertylineTM application for use by the Toronto Real Estate Board (“TREB”). Highlights from the Third Quarter 2017 Results
Revenue increased 9% to $2,461,000 from $2,255,000 for the three months ended September 30, 2017 and 2016, respectively. This increase was primarily attributable to (i) an increase of approximately $113,000 in revenue generated from the licensing of software, StreetScapeTM imagery and real property data; (ii) an increase of approximately $119,000 related to the sub-contracting of certain data verification and processing services to support a multi-year, US-based services agreement for which services commenced in the second quarter of 2017; and (iii) an increase of approximately $67,000 related to custom software development. These increases were partially offset by (i) a decrease in revenue of approximately $62,000 related to consulting services, and (ii) a decrease of approximately $45,000 in revenue related to the re-licensing of certain third-party data. Revenue increased 6% to $7,018,000 from $6,598,000 for the nine months ended September 30, 2017 and 2016, respectively. This increase was primarily attributable to (i) an increase of approximately $292,000 in revenue generated from the licensing of software, StreetScapeTM imagery and real property data; (ii) an increase of approximately $220,000 related to the sub-contracting of certain data verification and processing services to support a multi-year, US-based services agreement for which services commenced in the second quarter of 2017; and (iii) an increase of approximately $203,000 related to custom software development. This increase was partially offset by (i) a decrease of approximately $333,000 in revenue related to the re-licensing of certain third-party data; and (ii) a decrease in revenue of approximately $78,000 related to consulting services. Gross Margin Gross margin increased 14% to $1,585,000 from $1,394,000 for the three months ended September 30, 2017 and 2016, respectively. This increase was mainly attributable to (i) increased revenue of approximately $206,000, for the reasons noted in the “Revenue” section above; (ii) a decrease in data capture costs and image processing costs of approximately $81,000, primarily due to fluctuations in the timing and extent of StreetScapeTM imagery-based projects, and (iii) a decrease in third-party data and software licensing expense of approximately $45,000. These increases in gross margin were partially offset by an increase in subcontracting expense of approximately $162,000 to support a multi-year, US-based services agreement for which services commenced in the second quarter of 2017. Gross margin increased 20% to $4,566,000 from $3,792,000 for the nine months ended September 30, 2017 and 2016, respectively. This increase was mainly attributable to (i) increased revenue of approximately $420,000, for the reasons noted in the “Revenue” section above; (ii) a decrease in third-party data and software licensing expense of approximately $409,000; and (iii) decreased data capture costs and image processing costs of approximately $171,000, primarily due to fluctuations in the timing and extent of StreetScapeTM imagery based projects. These increases in gross margin were partially offset by an increase in third-party subcontracting expense of approximately $308,000 to support a multi-year, US-based services agreement for which services commenced in the second quarter of the current year. In accordance with applicable accounting standards, direct operating costs, including but not limited to, image capture and processing, sub-contractor fees, royalties and commissions, are recognized as they are incurred, while revenue is recognized over the period that the service is delivered. The nature of many of the Company’s sales agreements is that a substantial amount of costs are incurred at the outset of the arrangement over a period of a few months, while at least a portion of the related revenue is recognized over a period of years. This can result in significant variances in gross margin on a period over period basis. Comprehensive Income (Loss) Comprehensive income increased 25% to $152,000 from $122,000 for the three months ended September 30, 2017 and 2016, respectively. This improvement was mainly attributable to the approximate increase of $190,000 in gross margin for the reasons noted in the “Gross Margin” section above, but was offset to some extent by increases in (i) insurance and professional fees of approximately $82,000; (ii) human resource and related costs, other than those classified as direct operating costs, of approximately $48,000, and (iii) travel and promotion expense of approximately $25,000. The primary driver of these increases was to support development and promotion of new product and service offerings and strategic initiatives. Comprehensive loss decreased 51% to $139,000 from $286,000 for the nine months ended September 30, 2017 and 2016, respectively. Consistent with the quarter over quarter variances discussed above, this improvement was mainly attributable to the increase of approximately $775,000 in gross margin for the reasons noted in the “Gross Margin” section above, which was offset to some extent by increases in (i) human resource and related costs, other than those classified as direct operating costs, of approximately $265,000; (ii) insurance and professional fees of approximately $214,000; and (iii) travel and promotion expense of approximately $75,000. The primary driver of these increases was to support development and promotion of new product and service offerings and strategic initiatives. Adjusted EBITDA Adjusted EBITDA decreased 10% to $274,000 from $306,000 for the three months ended September 30, 2017 and 2016, respectively. While comprehensive income increased nominally for the three months ended September 30, 2017 as compared to the prior year, the positive impact of amortization and share-based compensation expense add backs was greater in the third quarter of the prior year. Adjusted EBITDA increased 25% to $343,000 from $275,000 for the nine months ended September 30, 2017 and 2016, respectively. These improvements were primarily attributable to the increases in revenue and decreases in direct operating expenses for the reasons noted in the “Revenue” and “Gross margin” sections above. Outstanding Share Data As at September 30, 2017, iLOOKABOUT had:
There were no share-related events subsequent to September 30, 2017. About iLOOKABOUT iLOOKABOUT’s common shares are traded on the TSX Venture Exchange under the symbol ILA. 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. Contact: Laurence Rose, Chief Executive Officer [email protected] 647.920.6383 www.ilookabout.com Robin Dyson, Chief Financial Officer [email protected] 1.519.931.6235 www.ilookabout.com |