Futura Loyalty Group Reports Third Quarter 2011 Financial Results
November 30 2011 - 8:35AM
Marketwired
The Futura Loyalty Group Inc. (TSX VENTURE:FUT) ("Futura" or the
"Company"), a Canadian leader in the loyalty industry today
announced its financial results for the three and nine-month
periods ended September 30, 2011.
For the three-month period ended September 30, 2011 revenues
increased by 35% to $505,556 versus $373,604 during the
corresponding period in 2010. Gross profit amounted to $304,780, or
60% of sales during the third quarter of 2011, representing a 49%
increase compared to the same period last year. Earnings before
interest, taxes depreciation and amortization ("EBITDA") for the
three-month period ended September 30, 2011 was negative $263,194
in comparison to an EBITDA of negative $288,261 for the same period
of 2010. This represents an improvement of 9% in EBITDA, despite
the fact that during the quarter, Futura ramped up expenses in
conjunction with its US expansion and marketing to car dealers in
Canada, with the revenue benefits of these investments not expected
to be material until 2012. The net loss for the three-month period
ended September 30, 2011 was $429,333 in comparison to a net loss
of $454,079 for the same period of 2010.
In Canada, the main driver of revenue continues to be increased
issuance of branded loyalty reward currency. Third quarter 2011 was
the second quarter in which the Company recognized revenue from new
car dealers and the Company expects this business segment to be a
significant driver of future growth.
With regards to the Company's US expansion, during the quarter,
Futura entered into an agreement with Points International to
resell Points' Air Incentives product which features three of the
top four frequent flyer programs in the US market. Futura is now
beginning to recruit new car dealers and automotive service
retailers in select markets with a view to launching its first
merchants in the first quarter of 2012.
For the nine-month period ended September 30, 2011, revenues
increased by 29% to $1,472,707, from $1,140,494 in the nine month
period ended September 30, 2010. Gross profit amounted to $803,734,
or 55% of sales during the nine-month period ended September 30,
2011, representing a 26% increase compared to the same period last
year. EBITDA for the nine-month period ended September 30, 2011 was
negative $738,421, in comparison to negative $1,085,099 for the
same period of 2010, representing a 32% improvement. The net loss
for the nine-month period ended September 30, 2011 was $1,115,290,
in comparison to a net loss of $1,545,736 for the same period of
2010.
Revenue from the resale of branded loyalty reward currency and
increased breakage, combined with reduced 2011 operating expenses,
despite the Company incurring expenses for its US expansion in the
third quarter, accounted for a significant portion of the
improvements in EBITDA losses.
"We are encouraged by the growth in auto dealer program as the
Company has now signed up 85 new car dealers and launched 77. I am
equally encouraged with the progress we have made in the US market,
as I see this as being a material driver of growth for the Company
as we are able to leverage our experience and technology. We are
also exploring other sales lead arrangements with companies that
are already selling into the relevant US market verticals which we
believe will help accelerate our entrance into the US" said Mark
Farrell, President and CEO of Futura.
To review the Company's complete third quarter financial
statements, please visit www.tflg.ca or www.sedar.com.
About Futura Loyalty Group
The Futura Loyalty Group Inc. is an industry-leading provider of
branded loyalty reward currencies, private branded loyalty programs
and targeted marketing solutions using email, mobile, direct mail
and the web. Futura's loyalty services include member account set
up, management and reward redemption platform, a web-based program
transaction reporting interface for merchants, a robust offer
management system, retail POS Integration for card swipe issuance
and a proprietary web based issuance solution. For more information
regarding The Futura Loyalty Group, visit www.tflg.ca.
"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."
Contacts: The Futura Loyalty Group Inc. David Campbell Chief
Financial Officer 416-775-3161dcampbell@tflg.cawww.tflg.ca
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