OutdoorPartner Media reports third quarter results
TORONTO, November 20 - OutdoorPartner Media Corporation (TSXV: OPX) ("OutdoorPartner" or the "Company"), a leading alternative out-of-home media provider, today announced financial results for its third quarter ended September 30, 2007.
Highlights
• Revenue for the three month period ended September 30, 2007 was $1,610,088, compared to $697,440 for the three month period ended September 30, 2006. On a pro forma basis (assuming the acquisition of Prime Point Media occurred January 1, 2006), revenue for the three month period ended September 30, 2006 was $1,630,334. For the nine months ended September 30, 2007, increased to $4,653,559, compared to pro forma revenue of $3,244,676 for the nine months ended September 30, 2006.
• EBITDA(*) loss for the quarter was $200,625 compared to a pro forma loss of $205,757 for the comparable prior year period.
• Net loss for the quarter was $344,827 compared to a loss of $379,422 for the third quarter of 2006. Net loss for the first nine months of 2007 was $1,035,143 compared to a loss of $970,210 for the first nine months of 2006.
• In July, the Company was contracted to deliver its largest campaign to date; a US$1.4 million, Hispanic-targeted campaign in over 20 U.S. markets for a Fortune 100 client.
• The Company extended its PartnerBin pilot program in New York City. Under the terms of the expanded, two-year agreement, the Company has the right to place up to 125 PartnerBins in the 125th Business Improvement District, located in Manhattan. An additional 15 PartnerBins were placed in New York City in September.
• The Company acquired the assets of Mira Outdoor Media ("Mira"), a Los Angeles-based company offering payphone kiosk advertising to local advertisers in Los Angeles, Las Vegas, San Francisco and Phoenix. In addition to the asset acquisition, Mira's founder joined OutdoorPartner Media to lead the development of the Company's local advertising business nationwide.
"We are encouraged that OutdoorPartner hit a new milestone this quarter with its largest contract to date and the fact that the Company continues to attract a blue chip client base," stated Mark Brodkin, President and Chief Executive Officer of OutdoorPartner. "The Company's successes in securing its largest contract to date and developing a local advertising business were tempered by the restructuring of a national advertising contract, which negatively impacted third quarter revenue by $1 million; however, on a pro forma basis, year-to-date revenue is up 43% compared to 2006 and the Company's average campaign size has increased 44% over the comparable prior year period."
Subsequent Events
• In November, the Company extended its agreement with Verizon, the Company's largest payphone provider. As a result of the extension, the Company has the exclusive right to sell wrapped, payphone kiosk advertising on Verizon payphones nationwide for the next seven years and, subject to regulatory approval, large format payphone kiosk advertising panels in New York City.
• In November, the Company signed a PartnerBin agreement with the City of Kansas City. Kansas City is the 31st ranked media market in the U.S. and is the Company's 11th PartnerBin community and 5th top 50 media market under contract.
Outlook
"OutdoorPartner Media made great strides in terms of strengthening its network of displays by extending the Verizon agreement, extending the New York City PartnerBin agreement and securing an opportunity to place PartnerBins in another top 50 U.S. media market," added Brodkin. "Verizon accounts for 50% of the Company's payphone kiosk revenue, plus the inclusion of large format payphone kiosk advertising panels positions the Company to play a larger role in the $62 million payphone advertising business in New York City."
"The Company has written contracts representing fiscal 2007 revenue of more than $6.5 million. While quarterly revenue is expected to be variable for the foreseeable future, the Company continues to see strong demand from national advertisers, in the form of proposals - up 70% over last November. The local advertising business is also gaining traction, with September and October local advertising revenue up 48% over August."
<<
Financial Highlights
OutdoorPartner Media Corporation
Unaudited Interim Consolidated Statements of Operations
(US dollars)
Three months ended
September 30, September 30,
2007 2006
Revenue $ 1,610,088 $ 697,440
Direct Costs 763,912 257,295
---------------------------
Gross Profit 846,176 440,145
Sales, General & Administrative expenses 1,046,801 787,159
---------------------------
EBITDA(*) $ (200,625) $ (347,014)
Amortization 132,177 29,166
Taxes 15,702 -
Stock-based compensation 34,832 -
Other 541 21,376
Interest expense/(income) (39,050) (18,134)
---------------------------
Net loss $ (344,827) $ (379,422)
---------------------------
---------------------------
OutdoorPartner Media Corporation
Reconciliation of EBITDA(*) to Net loss
Pro Forma(1)
3 months 3 months
period ended period ended
September 30, September 30,
2007 2006
EBITDA(*) $ (200,625) $ (205,757)
(Add)/Deduct
Taxes 15,702 -
Amortization 132,177 33,735
Stock-based compensation 34,832 -
Interest (39,050) (10,953)
Other 541 20,613
---------------------------
Net loss $ (344,827) $ (249,152)
---------------------------
-------------------------------------------------------------------------
(1) Assuming the acquisition of Prime Point occurred January 1, 2006
(*) 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.
>>
Notice of Conference Call
At 8:30 a.m. Eastern Time, on Wednesday, November 21, 2007, the Company's management team will host a conference call to discuss the financial results for the quarter. To access the conference call by telephone, dial 416-644-3416 or 1-800-731-5319. Please connect approximately ten minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay until Wednesday, November 28, 2007 at midnight. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21253381 followed by the number sign.
About OutdoorPartner:
OutdoorPartner is a market leader in the high-growth alternative out-of-home advertising industry. The Company provides its advertising clients with an opportunity to post messages on its diversified network of over 700,000 advertising displays - including payphone kiosks, litter/recycling receptacles ("PartnerBins"), and lifeguard towers - covering all of the top 50 Designated Market Areas ("DMAs") in the United States. In addition to static display advertising, OutdoorPartner provides advertisers with the opportunity to push rich digital content from its payphone kiosks to consumers' Bluetooth enabled mobile phones with a service called PrimeCasting. Combined with its powerful, proprietary database and mapping software, the Company's extensive network offers advertisers micro-targeted ad placement in close proximity to pedestrian traffic and the point of purchase. More information may be found online by visiting www.outdoorpartner.com.
Forward Looking Statements
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