News Column

Cyberplex Reports 2012 Results

Mar 20 2013 12:00AM



TORONTO, ONTARIO -- (Marketwire) -- 03/20/13 -- Cyberplex Inc. (TSX: CX) a leader in mobile, social and online audience targeting and customer acquisition, today announced its financial results for the fiscal year ended December 31, 2012. Total revenue from continuing operations for the year was $13.5 million, a slight increase from the $13.4 million recorded in 2011, and the adjusted EBITDA loss for the year was $2.4 million as compared to a $2.8 million loss in the prior year.

"The financial results reported today are disappointing, but reflect a year of rebuilding for the future," said Geoffrey Rotstein, Chief Executive Officer. "Our priority during the year was to re-establish a foundation for Cyberplex based on areas of strength, quality and where there are considerable growth opportunities. These efforts involved shedding business units that were volatile and lacked longevity, and investing in an exciting future for the company and our shareholders. We now have an innovative technology platform in one of the fastest growing segments of digital advertising and expect to once again establish ourselves as a leader in this dynamic industry."

The Company's core advertising platform enables leading agencies and brands to achieve the most targeted and efficient real-time mobile, social, video and web advertising. The system combines powerful data, advanced analytics and automated algorithms to determine the best advertising placements for any given campaign and to bid the optimal price for those placements through leading advertising exchanges, all in real-time. This highly sophisticated and scalable system analyzes up to 200,000 potential advertising placements every second, with access to tens of billions of advertising placements every day.

"While our rebuilding efforts continued into the first quarter of 2013, we are now emerging a stronger company with no debt and with a more attractive and sustainable value proposition," added Rotstein. "We expect the second quarter and the remainder of the year to be less about investments in the platform and more focused on sales and marketing to agencies and brands across North America. We are already driving better results than many of the largest players in the industry and with a powerful and disruptive technology, we believe we have a core advertising platform to drive Cyberplex for the years ahead."

Non-IFRS Financial Measures

This press release includes a discussion of "Adjusted EBITDA," which is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net loss from operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangibles; (b) share-based payments, (c) restructuring and acquisition costs, (d) impairments of goodwill and intangible assets and other items, net. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information related to the Company's ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to and in conjunction with results presented in accordance with the Company's consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

The table below reconciles net loss from continuing operations and Adjusted EBITDA for the years presented:

---------------------------------------------------------------------------- Years ended December 31,(In thousands of Canadian dollars) 2012 2011----------------------------------------------------------------------------Net loss from operations $ (3,901) $ (9,585)Add:Depreciation of property and equipment 283 358Amortization of domain properties and other intangibles 1,118 1,150Impairment of goodwill and intangible assets - 4,854Acquisition & restructuring costs 86 250Share-based payments 43 141----------------------------------------------------------------------------Adjusted EBITDA $ (2,371) $ (2,832)----------------------------------------------------------------------------

About Cyberplex

Cyberplex Inc. ( provides a smarter way to target customers. The Company uses real-time analytics and data-intensive platforms to reach the most relevant mobile, social and online audiences and deliver customers. Cyberplex partners with leading agencies, advertisers and networks across North America who are looking to better understand their customers and to get more value out of advertising and media initiatives.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

Cyberplex Inc.Unaudited Consolidated Statements of Financial Position(In thousands of Canadian dollars)December 31, 2012 and 2011 2012 2011----------------------------------------------------------------------------AssetsCurrent assets:Cash and cash equivalents $ 5,419 $ 4,050Accounts receivable 2,425 8,769Income taxes recoverable 40 31Other current assets 303 6,907---------------------------------------------------------------------------- 8,187 19,757Non-current assets:Restricted cash - 2,357Investment 50 -Property and equipment 460 1,998Domain properties and other intangibles 2,889 22,069Goodwill 357 365---------------------------------------------------------------------------- 3,756 26,789----------------------------------------------------------------------------Total assets $ 11,943 $ 46,546----------------------------------------------------------------------------Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable and accrued liabilities $ 2,703 $ 13,707Current portion of loans and borrowings - 4,634Current portion of finance leases 155 63Current portion of deferred lease inducements 41 71Deferred revenue 549 498Income taxes payable - 348---------------------------------------------------------------------------- 3,448 19,321Non-current liabilities:Loans and borrowings - 20,732Finance leases 186 104Deferred lease inducements 14 114Deferred tax liabilities 244 603---------------------------------------------------------------------------- 444 21,553Shareholders' Equity 8,051 5,672----------------------------------------------------------------------------Total liabilities and Shareholders' equity $ 11,943 $ 46,546----------------------------------------------------------------------------Cyberplex Inc.Unaudited Consolidated Statements of Comprehensive Income (Loss)(In thousands of Canadian dollars, except per share amounts)Years ended December 31, 2012 and 2011 2012 2011----------------------------------------------------------------------------Continued operations:Revenue $ 13,506 $ 13,353Expenses: Publishing and advertising costs 7,809 7,155 Employee compensation and benefits 5,139 5,561 Other operating expenses 2,972 3,610 Depreciation of property and equipment 283 358 Amortization of domain properties and other intangibles 1,118 1,150 Acquisition and restructuring costs 86 250 Impairment of goodwill and intangible assets - 4,854---------------------------------------------------------------------------- 17,407 22,938----------------------------------------------------------------------------Loss from operations (3,901) (9,585)Finance income 50 4,279Finance cost (94) (39)----------------------------------------------------------------------------Loss before income taxes (3,945) (5,345)Income tax recovery (expense): Current 21 (38) Deferred 357 497----------------------------------------------------------------------------Loss for the year from continuing operations (3,567) (4,886)Discontinued Operation:Income (loss) for the year from discontinued operation, net of tax of nil 5,129 (4,251)----------------------------------------------------------------------------Income (loss) for the year 1,562 (9,137)Other comprehensive income (loss): Net change in fair value of available-for-sale financial assets - 761 Amount reclassified to income - (753) Foreign currency translation adjustments to equity (69) 103---------------------------------------------------------------------------- Other comprehensive income (loss) for the year, net of tax (69) 111----------------------------------------------------------------------------Total comprehensive income (loss) for the year $ 1,493 $ (9,026)--------------------------------------------------------------------------------------------------------------------------------------------------------Income (loss) per share: Basic 0.01 (0.07) Diluted 0.01 (0.07)Loss per share from continuing operations: Basic (0.03) (0.04) Diluted (0.03) (0.04)----------------------------------------------------------------------------

Cyberplex Inc.
David Katz
EVP Corporate Development
416.597.2345 (FAX)

Source: Marketwire

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