MONTREAL, Nov. 27, 2019 /CNW/ -- Engagement Labs Inc.
(TSXV: EL) released results for its third quarter ended
September 30, 2019 and provides
Financial advisor update. Condensed interim consolidated Financial
Statements and Management Report are available on
SEDAR's website at www.sedar.com.
Strategic Review Process Update
As disclosed in a Press Release on August
2, 2019, the Company engaged a New
York-based investment bank to work with the Board of
Directors to consider its strategic alternatives which may include
taking on a strategic investor, the sale of the Company and/or some
or all of its assets. The process is continuing. As indicated
previously, there is no assurance that any material decisions will
be made as a consequence of this process.
Third Quarter Financial Highlights
- Total company revenue was $1,042,909 for Q3 2019, which all were
TotalSocial® revenue, representing a 26% increase in TotalSocial
revenue vs Q3 2018 ($829,739), and a
18% increase in Total company revenue vs Q3 2018 ($883,342).
- Gross margin increased to 52% in Q3 2019, from 40% in Q3
2018.
- The operating expenses have increased to $1,906,986 in Q3 2019, up 30% or $434,654 from $1,472,332 in Q3 2018.
- Net loss before income taxes has increased to -$1,367,046 in Q3 2019, up 1% or -$17,494 from -$1,349,552 in Q3 2018.
- EBITDA(1) loss of -$1,203,021 for Q3 2019, representing an increase
of $218,672, from -$984,349 for Q3 2018.
- Non-GAAP Adjusted EBITDA(1) loss of -$919,345 for Q3 2019, representing an increase of
$169,413 from -$749,932 for Q3 2018.
- Basic and diluted income per share was ($0.01) for Q3 2019 compared to ($0.01) for Q3 2018.
- As at September 30, 2019, the
Company had cash of $1,128,549,
compared to $906,455 as of
December 31, 2018.
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(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 calculation. 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 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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"We are very happy with our growth of TotalSocial revenue, and
we continue to bring in new Fortune 500 companies and new sectors.
This combined with our focus on cost control continue to move us in
the right direction as a Company," said Ed
Keller, CEO.
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