MONTREAL, Quebec, May 14, 2020 /CNW/ -- Engagement Labs Inc.
(TSXV: EL) released results for its fiscal year ended December 31, 2019, and announces that due to
COVID 19 circumstances it will delay filing its first quarter
interim financial statements and its management discussion and
analysis report for the three-month period ended March 31, 2020 until on or about June 19, 2020. Audited consolidated Financial
Statements and Management Report are available on
SEDAR's website at www.sedar.com.
Fiscal year 2019 Audited Results Released
- TotalSocial® revenue was $4,016,667 for the year ended December 31, 2019, an increase of 16% compared to
$3,451,300 for the year ended
December 31, 2018.
- Total revenue, including both TotalSocial® and EL
legacy products, was $4,083,497 for
the year ended December 31, 2019, an
increase of 3% compared to $3,973,704
for the year ended December 31,
2018
- Gross profit was $2,006,774 for
the year ended December 31, 2019, an
increase of 10% compared to $1,818,527 for the year ended December 31, 2018. As a percentage of revenue,
the gross margin was 49% for the year ended December 31, 2019, an increase of 7% compared to
46% for the year ended December 31,
2018.
- Non-GAAP Adjusted EBITDA(1) loss was -$2,070,568 for the year ended December 31, 2019, an improvement of 36%
compared to -$3,214,308 for the year
ended December 31, 2018.
- EBITDA(1) loss was -$4,174,041 for the year ended December 31, 2019, an increase of 4% compared to
-$4,030,950 for the year ended
December 31, 2018.
- Operating expenses were $6,813,918 for the year ended December 31, 2019, an increase of 4% compared to
$6,533,005 for the year ended
December 31, 2018. Excluding
impairment loss on goodwill and gain on extinction of debt and
equity components of convertible debentures, the non-GAAP operating
expenses were $5,664,698 for the year
ended December 31, 2019, a decrease
of 13% compared to $6,533,005
for the year ended December 31,
2018.
- The net loss for the year ended December
31, 2019 decreased to -$5,290,087, down 4% or $222,577 from -$5,512,664 for the year ended December 31, 2018. Basic and diluted loss per
share was ($0.03) for the year ended
December 31, 2019, compared to
($0.06) for the year ended
December 31, 2018.
- As at December 31, 2019, the
Company was holding cash of $844,107
($906,455 as at December 31, 2018) and had no cash in escrow
($200,793 as at December 31, 2018).
Fourth Quarter Financial Highlights
- Revenue of $1,167,785 for Q4 2019
increased 12% from $1,042,909 in Q3
2019, and increased by 3%, from $1,139,156 for Q4 2018.
- Gross margin for Q4 2019 remained stable from Q3 2019 at 52%,
and it decreased from 54% in Q4 2018.
- Operating expenses, before non-operational expenses, have
decreased to $1,088,424 in Q4 2019,
down 43% or $818,562 from
$1,906,986 in Q3 2019, and down 39%
or $685,820 from $1,774,244 in Q4 2018.
- Excluding non-operational expenses, the net loss before income
taxes has decreased to -$421,241 in
Q4 2019, down 69% or $945,805 from
-$1,367,046 in Q3 2019, and down 70%
or $990,056 from -$1,411,297 in Q4 2018.
- Non-GAAP Adjusted EBITDA(1) loss of -$270,072 for Q4 2019, representing an improvement
of $649,273 from -$919,345 for Q3 2019, and an improvement of
$490,340 from -$760,412 for Q4 2018.
- EBITDA(1) loss of -$1,732,637 for Q4 2019, representing an increase
of -$529,616 from -$1,203,021 for Q3 2019, and an increase of
$695,780 from -$1,036,857 for Q4 2018.
(1)
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EBITDA is defined as
earnings before interest, income taxes, depreciation and
amortization. Number for comparative periods were revised to
exclude SRED credit tax, variation on exchange, and bank charges in
EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as
EBITDA to which the Company adds stock-based compensation including
the grant of stock options, restricted shares units, and restricted
share awards as these expenses do not result in any use of
operating cash flows by the Company, severance payments, impairment
loss on goodwill, write-off of intangible assets, change in fair
value of investment in shares, expenses related to acquisition or
disposal of business, and loss on extinction of debt and equity
components of convertible debentures, which are extraordinary and
non-recurrent expenses, and Board remuneration, which is paid in
shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a
supplementary earning measure to assist readers in determining the
ability of ENGAGEMENT LABS INC. to generate cash from operations
and to cover financial charges. They are also widely used for
business valuation purposes. These measures do not have a
standardized meaning prescribed by IFRS and may not be comparable
to similar measures presented by other companies.
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"I am pleased with TotalSocial revenue growth of 16% in FY 2019,
which reflects continuing acceptance of our platform among our
Fortune 500 client base. Also, we were successful at reducing
our operating expenses by 13% and continue to focus on cost
reduction in order to achieve cash flow break even," said
Ed Keller, CEO.
Equity Grant
In order to preserve cash, the Company implemented a salary
deferral program for employees and management that took affect
March 15, 2020. In connection with
this and in accordance with its Stock Option Plan and RSA Plan, the
Company granted 3,350,000 stock options and 3,200,000 RSAs to
employees and management of the Company, of which 2,300,000 stock
options and 2,200,000 RSAs were granted to four officers of the
Company. The stock options have an exercise price of $0.05 per share and a term of five years.
2020 First Quarter Interim Financial Statements
The Company announces that due to COVID 19 circumstances it will
delay filing its first quarter interim financial statements and its
management discussion and analysis report for the three-month
period ended March 31, 2020 until on
or about June 19, 2020. EL is relying
upon temporary relief granted by the Autorité des marches
financiers (AMF) allowing reporting issuers to extend certain
continuous disclosure filing deadlines occurring during the period
March 23, 2020 to June 1, 2020 by 45 days.
Management and other insiders of the company are subject to an
insider trading black-out policy until the delayed filings are
completed, reflecting the principles in section 9 of National
Policy 11-207 Failure-to-File Cease Trade Orders and
Revocations in Multiple Jurisdictions.
About Engagement Labs
Engagement Labs (TSXV: EL) is an
industry-leading data and analytics firm that provides social
intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
Disclaimer in regard to Forward-looking
Statements
Certain statements included herein constitute
"forward-looking statements" within the meaning of applicable
securities laws. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Investors are cautioned not to put undue reliance on
forward-looking statements. Except as required by law, Engagement
Labs does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new
information or future events.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For media inquiries please contact:
Vanessa Lontoc / Ed
Keller, CEO
Engagement Labs
vanessa.lontoc@engagementlabs.com /
ed.keller@engagementlabs.com
SOURCE Engagement Labs