OutdoorPartner Media announces first quarter revenue increase of 717% to US$1 million
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, May 22 - OutdoorPartner Media Corporation (TSXV: OPX) (“OutdoorPartner” or the “Company”), a leading alternative out-of-home media provider, today announced financial results for its first quarter ended March 31, 2007.
Highlights
• Revenue for the three month period ended March 31, 2007 increased 717% to $1,010,195 from $123,575 for the three month period ended March 31, 2006. On a pro forma basis (assuming the acquisition of PPM occurred January 1, 2006), revenue for the three month period ended March 31, 2007 increased 179% to $1,010,195 from $362,141 for the three month period ended March 31, 2006.
• Adjusted EBITDA* loss for the three month period ended March 31, 2007 was $324,132. On a pro forma basis (assuming the acquisition of PPM occurred January 1, 2006), the Company recorded an Adjusted EBITDA* loss of $1,554,992 for the three month period ended March 31, 2006.
• In January, 2007, the Company successfully completed its largest payphone kiosk advertising campaign to date; consisting of approximately 5,000 payphone kiosks in close proximity to doctors’ offices and health care facilities. The campaign spanned 190 markets in 49 U.S. states.
• In March, 2007, Dan Levi was appointed to the Company’s Board of Directors. Mr. Levi is currently the Chief Marketing Officer, Marketing, Internet Advertising & Fees Division with Monster Worldwide. Prior to Monster Worldwide, Mr. Levi acted as Vice President, Marketing and Senior Vice President, Marketing for World Wrestling Entertainment. In addition, Mr. Levi has held various executive positions with MTV Networks.
"OutdoorPartner achieved strong revenue growth in, what has historically been, a seasonally weak period for the Company and the out-of-home industry," stated Mark Brodkin, President and Chief Executive Officer of OutdoorPartner. "In addition, the Company completed its first campaign greater than $1 million and demonstrated operational and sales success with PrimeCasting, the Company’s Bluetooth advertising solution."
Subsequent Events
• In April, 2007, the Company installed 25 PartnerBins in Atlanta, the 9th ranked designated market area (“DMA”) in the U.S. and the Company’s 10th PartnerBin community. In addition to the new Atlanta installation, the Company also resumed selling ad space on its PartnerBin network in Baltimore.
• In May, 2007, the Company signed its largest campaign to date, a $1.5 million campaign supporting the launch of a consumer beverage. The campaign includes postings on payphone kiosks in close proximity to approximately 1,500 convenience stores throughout Los Angeles, New York, Miami, Chicago, Atlanta, Dallas and Phoenix.
• In May, 2007, the Company completed a short form prospectus offering of 5,950,000 common shares at a price of CAD$0.90 per share, raising gross proceeds of CAD$5,355,000.
• As a result of securing a contract for its largest advertising campaign to date in May, combined with other client wins, the Company has contracted for advertising campaigns representing 2007 revenue of $5.3 million.
"The recent announcement of the Company’s largest campaign pushes 2007 revenue, based on written contracts, over the $5.3 million mark, which is greater than fiscal 2006 pro forma revenue," continued Brodkin. "With written contracts totaling $5.3 million, the ability to sell advertising in Baltimore again, more than 6 months remaining in the sales year, and the capital required to fund growth initiatives, OutdoorPartner is positioned to continue to post strong revenue growth in fiscal 2007."
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Financial Highlights
OutdoorPartner Media Corporation
Unaudited Interim Consolidated Statements of Operations
(US dollars)
Three months ended
March 31, March 31,
2007 2006
Revenue $ 1,010,195 $ 123,575
Direct Costs 467,156 18,598
----------------------------
Gross Profit 543,039 104,977
Sales, General & Administrative expenses 951,659 314,633
----------------------------
EBITDA(*) $ (408,620) $ (209,656)
Amortization 100,974 19,037
Other (3,373) -
Interest expense/(income) (217) (22,116)
----------------------------
Net loss $ (506,004) $ (206,577)
----------------------------
OutdoorPartner Media Corporation
Reconciliation of Adjusted EBITDA(*) to Net income
Pro Forma(*)
3 months 3 months
period ended period ended
March 31, March 31,
2007 2006
Adjusted EBITDA(*) $ (322,010) $ (1,554,992)
(Add)/Deduct:
Stock-based compensation 38,426 -
----------------------------
EBITDA(*) $ (360,436) $ (1,554,992)
(Add)/Deduct
Taxes 48,184 -
Amortization 100,974 27,233
Interest (217) (8,847)
Other (3,373) (3,376)
----------------------------
Net loss $ (506,004) $ (1,570,002)
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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.
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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 2006 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