Robust sales recovery and a strong
balance sheet and liquidity position
TORONTO, Nov. 25, 2020
(GLOBE NEWSWIRE) -- YANGAROO
Inc. (“Yangaroo”, “Company”), (TSX-V: YOO, OTCBB: YOOIF),
the software leader in work-flow management and media distribution solutions,
today announced its results for the quarter ended September 30, 2020. The full
text of the Financial Statements and Management Discussion & Analysis is
available at www.yangaroo.com and at www.sedar.com. Please note that all currency
in this press release is denominated in Canadian dollars.
Consolidated revenue for
the third quarter of 2020 was $1,921,312 compared to $1,959,312 and $1,586,695
in the third quarter of 2019 and second quarter of 2020, respectively. The
Company generated normalized EBITDA of $502,299, inclusive of government wage
subsidy payments, during the quarter ended September 30, 2020, in comparison to
a normalized EBITDA of $255,834 in the prior year quarter ended September 30,
2019 and normalized EBITDA of $118,700 in the second quarter of 2020 ended June
30, 2020. The increase in revenue and normalized EBITDA in Q3’2020 is primarily
attributed to increased Advertising and Awards revenue resulting from a
recovery in customer demand for the use of our workflow platform. The second
quarter of 2020 saw a significant advertising industry wide slump in volume of
new advertising campaigns and total dollar spend which was attributed to the
global COVID-19 pandemic. The third quarter of 2020 observed advertising
volumes and total dollar spend recovering to pre-pandemic levels. Awards
revenue was also significantly impacted in the first half of 2020, and we saw a
strong rebound in award show customers using our platform in the third quarter
of 2020 resulting in significantly higher Awards revenues.
Music revenue continued
to increase during these comparison periods and partially helped off-set any
impact from COVID-19. The Company continued to see strong demand for its Music
platform in the form of recurring subscription revenues and on-demand platform
usage from independent music artists and music labels. Finally, government wage
subsidies and cost management initiatives contributed to a gain in normalized
EBITDA earnings during the quarter.
“The third quarter of
2020 saw a swift recovery in the demand for our platform from our advertising
and awards customers as the economy continued to rebound from the initial
impact of COVID-19 in the first half of 2020,” stated recently appointed
Interim CEO of Yangaroo, Grant Schuetrumpf. “We have seen signs of resumption
in advertising campaigns across a broad spectrum of clients to pre-pandemic
levels and we expect this recovery to continue through to the end of 2020.
Awards division revenues increased significantly as many of our clients
restarted their award shows from an initial deferral in Q1’ and Q2’2020, and we
expect this trend to continue through to the end of 2020. Finally, our Music
revenues have continued to be a bright spot for Yangaroo as independent music
artists and music labels increased their usage of the platform resulting in 20%
revenue growth quarter over prior-year quarter.”
Grant Schuetrumpf added,
“We ended the third quarter with a strong recovery in revenue and demand for
our platform and we expect this trend to continue through to the fourth quarter
of 2020. Additionally, our balance sheet and cash position has never been
stronger with over $2 million in cash and over $3 million in working capital on
top of an undrawn $1 million revolving loan facility. We are very optimistic
about the future prospects of our business and achieving our previously stated
growth targets in 2021, which is in stark contrast to some of the outlook scenarios
we were facing at the beginning of the pandemic. Finally, we continue to
evaluate and be opportunistic with organic and non-organic growth initiatives.”
As at September 30, 2020,
the Company has a cash position of $2.3 million and a working capital position
of $3.1 million. The Company’s share buy-back program continues to be suspended
and will continue to be evaluated on an on-going basis.
About YANGAROO:
Yangaroo is a software leader in work-flow management for advertising, music,
and awards industries. YANGAROO’s patented Digital Media Distribution System is
a leading secure business to business cloud-based solution that provides
clearance, delivery, and secure API integration for various work-flow
challenges in media distribution.
YANGAROO has
offices in
For YANGAROO Investor Inquiries:
Grant Schuetrumpf
Phone: (416) 534-0607
Grant.Schuetrumpf@yangaroo.com
Cautionary Note Regarding Forward-looking Statements
This news release
contains certain forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws. All statements other
than statements of present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "anticipate", "achieve", "could",
"believe", "plan", "intend", "objective",
"continuous", "ongoing", "estimate",
"outlook", "expect", "may", "will",
"project", "should" or similar words, including negatives
thereof, suggesting future outcomes.
Forward-looking
statements are subject to both known and unknown risks, uncertainties and other
factors, many of which are beyond the control of YANGAROO, that may cause the
actual results, level of activity, performance or achievements of YANGAROO to
be materially different from those expressed or implied by such forward-looking
statements, including but not limited to: the use of proceeds of the offering,
receipt of all necessary approvals of the offering, general business, economic,
competitive, political and social uncertainties; negotiation uncertainties and
other risks of the technology industry. Although YANGAROO has attempted to
identify important factors that could cause actual results to differ materially
from those contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
Forward-looking
statements are not a guarantee of future performance and involve a number of
risks and uncertainties, some of which are described herein. Such
forward-looking statements necessarily involve known and unknown risks and
uncertainties, which may cause YANGAROO’s actual performance and results to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Any forward-looking
statements are made as of the date hereof and, except as required by law,
neither YANGAROO assumes no obligation to publicly update or revise such
statements to reflect new information, subsequent or otherwise.
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