OutdoorPartner Media announces fourth quarter revenue increase of 1,538% to US$2.02 million and first profitable quarter with adjusted EBITDA of US$214,736
TORONTO, March 19 - OutdoorPartner Media Corporation (TSX-V: OPX) ("OutdoorPartner" or the "Company"), a leading alternative out-of-home media provider, today announced financial results for its fourth quarter and fiscal year ended December 31, 2006.
Financial Highlights
• Revenue for the three months ended December 31, 2006 totaled US$2,019,854, an increase of US$1,896,529 or 1,538% from the three months ended December 31, 2005;
• The Company reported its first profitable quarter. Adjusted EBITDA(*) (defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition related costs and severance) was US$214,736 and net income was US$21,368 for the three months ended December 31, 2006; and
• Revenue for the twelve months ended December 31, 2006 increased 592% to US$2,967,522 from US$429,141 for the year ended December 31, 2004.
"We are very pleased with the 2006 results," said Mark Brodkin, President and Chief Executive Officer of OutdoorPartner. "Our business continues to experience significant growth and the Company delivered its first profitable quarter in the fourth quarter. With the acquisition of Prime Point Media, we are poised to benefit from the increased popularity of alternative out-of-home media in the U.S. marketplace."
Operational Highlights for 2006
• The Company successfully increased its average campaign size and built on its base of Fortune 500 clients by adding new clients in new sectors. Advertising clients in fiscal 2006 included: Amstel Light; Anheuser-Busch; AOL; AT&T; Bacardi; Bank of America; Bristol-Myers Squibb; Bud Light; Captain Morgan; Chase Bank; Courvoisier; HBO; Heineken; Kaletra; Kawasaki; Malibu Rum; Miller; Mountain Dew; Nissan; Pepsi; Random House; REMAX; Showtime; Smirnoff; Stella Artois; Telemundo; and the U.S. Navy Reserve;
• In March, the Company commenced trading on the TSX Venture exchange following the completion of an amalgamation between Cutwater Capital Corporation ("Cutwater") and OutdoorPartner Media Canada Inc. ("OutdoorPartner Canada");
• A PartnerBin pilot program was launched in St. Louis in February 2006, the 8th location in the United States to enroll in a PartnerBin program;
• A PartnerBin pilot program was launched in New York City's 125th Business Improvement District in July 2006, the 9th location in the United States to enroll in a PartnerBin program;
• In August, the Company completed the acquisition of Prime Point Media ("Prime Point" or "PPM");
• The Company executed its first Bluetooth advertising campaign beginning in November 2006. The campaign used PPM's Bluetooth technology product, PrimeCasting, to deliver the client's 2-minute video to the mobile phones of passersby; over 16.5% of respondents chose to download the full video;
• The Company signed its first campaign greater than US$1.0 million in November 2006. The campaign was executed in almost 5,000 locations across 49 states; and
• The Company provided Out-of-Home advertising to over 140 companies in more than 200 cities in the United States.
"Fiscal 2006 was a great year for OutdooorPartner Media," stated Brodkin. "We became a public company, secured several new locations for PartnerBins, completed a major acquisition, successfully sold and executed our first-ever Bluetooth campaign, secured our first campaign worth over US$1.0 million and continued to build our reputation as a first-class media company with major advertisers and agencies."
Subsequent Events
• Due to success on the Bluetooth front and other client wins, the Company has already contracted for advertising campaigns representing 2007 revenue of US$3.5 million;
• The Company secured a contract to install PartnerBins in the City of Atlanta, the 10th location in the United States to enroll in a PartnerBin program;
• The Company commenced local/regional payphone advertising operations in New York City, Los Angeles and Miami in February 2007; and
• PPM has signed three contracts for Bluetooth advertising campaigns to be executed in 2007.
"OutdoorPartner continues to gain momentum in 2007 and is well on the way to a record year,": Brodkin added. ":Integration of the acquisition has been seamless and Prime Point has performed well in excess of our expectations. We have already contracted over US$3.5 million in revenue for 2007 during what is typically the slowest season for out-of-home buying."
"Of the US$3.5 million of revenue contracted for the year, US$3.0 million is scheduled to be recognized in the first half of the year; this is extremely encouraging as, historically, a significantly higher portion of revenue is earned in the second half of the year," Brodkin continued. "The Company is positioned to have its best ever Q1 and Q2 based on written contracts and recognized revenue. With the addition of a local/regional sales team, several new contracts for our Bluetooth offering and our new PartnerBin program in Atlanta, we look forward to a great year in which we will reach many more significant milestones."
Financial Highlights
OutdoorPartner Media Corporation
Audited Annual Consolidated Statements of Operations
(US dollars)
Twelve months ended
December 31, December 31,
2006 2005
Revenues $ 2,967,522 $ 429,141
Direct Costs 1,245,788 123,285
---------------------------
Gross Profit 1,721,734 305,856
Sales, General & Administrative expenses 2,646,766 990,224
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EBITDA(*) $ (925,032) $ (684,368)
Amortization 100,735 63,072
Interest expense/(income) (74,425) (17,650)
---------------------------
Net loss $ (951,342) $ (729,790)
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Financial Highlights
OutdoorPartner Media Corporation
Reconciliation of Adjusted EBITDA(*)
to Net income
(US dollars)
Three months ended
December 31, 2006
Adjusted EBITDA(*) $ 214,736
(Add)/Deduct:
Severance 126,501
Transaction related costs 33,622
-------------------
EBITDA(*) $ 54,613
(Add)/Deduct
Amortization 31,665
Interest (4,204)
Other 5,784
-------------------
Net income $ 21,368
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(*) EBITDA is not an earnings measure recognized by GAAP in Canada or the
United States and does not have a standardized meaning prescribed by
GAAP. It should not be considered a substitute for income (loss) from
operations, net income (loss), cash flows from operating activities
or other statement of operations or cash flow statement data prepared
in accordance with GAAP. Management considers EBITDA to be a
meaningful supplement to operating and net income as a performance
measure that facilitates period-to-period operating comparisons and
allows the Company to compare its operating results with its
competitors. In addition, management believes that such a measure is
commonly used by securities analysts, investors and other interested
parties to evaluate a company's financial performance. The Company's
method of calculating EBITDA may differ from the methods used by
other companies and accordingly, EBITDA references contained herein
may not be comparable to similar measures presented by other
companies.
About OutdoorPartner:
OutdoorPartner is a market leader in the emergent alternative out-of-home media segment. The Company operates two out-of-home media networks: a PartnerBin network and a payphone kiosk advertising network. PartnerBins - litter/recycling receptacles that facilitate advertising - are currently located in nine U.S. communities, including: New York City, St. Louis and Baltimore. OutdoorPartner's payphone kiosk advertising division, Prime Point Media, offers highly-targeted advertising plus PrimeCasting - a Bluetooth broadcast solution - on a network of over 700,000 payphone kiosks located in all of the top 50 designated market areas. More information may be found by visiting www.outdoorpartner.com or www.primepointmedia.com.
This news release contains forward-looking statements regarding, among other things, OutdoorPartner's beliefs, plans, objectives, strategies, estimates, intentions and expectations. Such statements are based on a number of assumptions which may prove to be incorrect, involve certain risks and uncertainties that are difficult to predict and, accordingly, are not guarantees of future performance. The future results of the Company or developments may differ materially from those expressed in the forward-looking statements contained in this news release, due to, among other factors, OutdoorPartner's lack of operating profits, its dependence on key personnel, general economic conditions and other external events that may impact on customers' advertising spending, competition from other out-of-home advertisers and other media and government regulation seeking to limit or restrict OutdoorPartner's activities. More detailed information about these and other factors is included in OutdoorPartner's 2005 Annual Information Form and other documents published or filed by, or on behalf of, OutdoorPartner from time to time with the Canadian securities regulatory authorities. Other than as required by law, OutdoorPartner undertakes no obligation to publicly update or revise any such forward-looking statements or information, whether as a result of new information, future events or otherwise.
For further information: Mark Brodkin, CEO, OutdoorPartner Media Corporation, 296 Richmond Street West, Suite 305, Toronto, Ontario M5V 1X2, Canada, T: (416) 602-1602, F: (416) 352-5070, www.outdoorpartner.com