Welcome!

News Feed Item

EQ Inc. Reports Fourth Quarter Growth and 2013 Results

Company Reports Growth in Advertising Operations

TORONTO, ONTARIO -- (Marketwired) -- 03/18/14 -- EQ Inc. (TSX:EQ) ("EQ Works") a leader in audience targeting for mobile, social, video and display advertising today announced its financial results for the fiscal year and fourth quarter-ended December 31, 2013. Total revenue from continuing operations for the quarter was $2.6 million, an increase of 40% from the $1.9 million recorded in the third quarter of 2013. The adjusted EBITDA loss for the quarter was approximately $197,000, a 64% improvement as compared to a loss of $550,000 in the the third quarter of 2013. Total revenue from continuing operations for the year was $8.0 million and the adjusted EBITDA loss for the year was $2.3 million.

Highlights for the Fourth Quarter ended December 31, 2013


--  Several new agency clients joined our Agency First(TM) program,
    establishing EQ as their preferred media buying partner 
--  Active campaigns grew 120% during the quarter 
--  The Company launched Hercules(TM), an innovative advertising solution
    that has been recognized by experts for its effectiveness at fighting
    click-fraud 
--  The Company strengthened its mobile advertising capabilities and
    expanded its team to support increasing demand for innovative mobile
    targeting solutions 

"The investments we made during 2013 to refocus the Company on effective audience targeting solutions were put to the test during the busiest quarter in digital advertising," said Geoffrey Rotstein, President and CEO. "We consistently beat our clients' expectations, proving our effectiveness in reaching new audiences and with quality scores that far surpassed what others in the industry were capable of delivering." added Rotstein. "It was a good quarter for EQ as we continue to innovate with products and solutions that deliver better performing ads and produce insights that help companies find new customers."

Non-IFRS Financial Measures

We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net income (loss) in the section entitled "Reconciliation of Net Loss for the period to Adjusted EBITDA". The Company defines Adjusted EBITDA as net income (loss) from continuing operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and domain properties and other intangible assets, (e) Income tax expense and recovery, and (f) finance income and costs, 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 working capital requirements, capital expenditures and potential acquisitions. 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 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 periods presented:


Adjusted EBITDA for three and twelve months ended December 31, 2013 and 20  
----------------------------------------------------------------------------
                                  Three months ended       Twelve months    
                                     December 31,         ended December    
(In thousands of Canadian                                                   
 dollars)                              2013       2012       2013       2012
----------------------------------------------------------------------------
                                                                            
Net income (loss)                   (1,330)      (773)    (4,471)     1,562 
Add:                                                                        
                                                                            
Income from the discontinued                                                
 operation                               -          -      -         (5,129)
Income tax recovery                    (40)      (233)      (237)      (378)
Finance income costs, net               85         35        223         44 
Depreciation of property and                                                
 equipment                              64         70        273        283 
Amortization of domain                                                      
 properties and other                                                       
intangibles assets                     296        279      1,158      1,118 
Share-based payments                    12          4         57         60 
Impairment of goodwill and                                                  
 domain properties                                                          
and other intangible assets            716          -        716          - 
Restructuring                            -         86      -             86 
                                                                            
----------------------------------------------------------------------------
Adjusted EBITDA                       (197)      (532)    (2,281)    (2,354)
----------------------------------------------------------------------------

About EQ Works

EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.

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. EQ Inc. is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.


EQ Inc.                                                                     
Unaudited Consolidated Statements of Financial Position                     
(In thousands of Canadian dollars)                                          
December 31, 2013 and December 31, 2012                                     
                                                            2013        2012
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current assets:                                                             
Cash and cash equivalents                            $     2,797 $     5,419
Accounts receivable                                        2,231       2,425
Other current assets                                         222         303
Income taxes recoverable                                       -          40
----------------------------------------------------------------------------
                                                           5,250       8,187
                                                                            
Non-current assets:                                                         
Investment                                                    50          50
Property and equipment                                       281         460
Domain properties and other intangible assets              1,610       2,889
Goodwill                                                       -         357
----------------------------------------------------------------------------
                                                           1,941       3,756
----------------------------------------------------------------------------
                                                                            
Total assets                                         $     7,191 $    11,943
----------------------------------------------------------------------------
                                                                            
                                                                            
Liabilities and Shareholders' Equity                                        
                                                                            
Current liabilities:                                                        
Accounts payable and accrued liabilities             $     2,316 $     2,703
Deferred lease inducements                                    14          41
Finance leases                                               122         155
Deferred revenue                                             602         549
----------------------------------------------------------------------------
                                                           3,054       3,448
                                                                            
Non-current liabilities:                                                    
Finance leases                                                64         186
Deferred lease inducements                                     -          14
Deferred tax liabilities                                       -         244
----------------------------------------------------------------------------
                                                              64         444
                                                                            
Shareholders' Equity                                       4,073       8,051
----------------------------------------------------------------------------
                                                                            
Total liabilities and Shareholders' equity           $     7,191 $    11,943
----------------------------------------------------------------------------
                                                                            
EQ Inc.                                                                     
Unaudited Consolidated Statements of Comprehensive Income (Loss)            
(In thousands of Canadian dollars, except per share amounts)                
Three and twelve months ended December 31, 2013 and 2012                    
                                                                            
                                  Three months ended    Twelve months ended 
                                     December 31,          December 31,     
                                       2013       2012       2013       2012
----------------------------------------------------------------------------
                                                                            
Revenue                          $   2,592  $   2,576  $   8,044  $  13,506 
                                                                            
Expenses:                                                                   
  Publishing and advertising         1,339      1,533      4,228      7,809 
  Employee compensation and                                                 
   benefits                            855      1,143      3,605      5,139 
  Other operating                      607        436      2,549      2,972 
  Depreciation of property and                                              
   equipment                            64         70        273        283 
  Amortization of domain                                                    
   properties and other                                                     
   intangible assets                   296        279      1,158      1,118 
  Impairment of goodwill and                                                
   domain properties other                                                  
   intangible assets                   716          -        716          - 
  Restructuring                          -         86          -         86 
  --------------------------------------------------------------------------
                                     3,877      3,547     12,529     17,407 
----------------------------------------------------------------------------
                                                                            
Loss from operations                (1,285)      (971)    (4,485)    (3,901)
                                                                            
Finance income                           9        168         34         50 
Finance cost                           (94)      (203)      (257)       (94)
----------------------------------------------------------------------------
                                                                            
Loss before income taxes            (1,370)    (1,006)    (4,708)    (3,945)
                                                                            
Income taxes recovery                   40        233        237        378 
----------------------------------------------------------------------------
                                                                            
Loss for the period from                                                    
 continuing operations              (1,330)      (773)    (4,471)    (3,567)
                                                                            
Discontinued Operation:                                                     
                                                                            
Income for the period from                                                  
 discontinued operation, net of                                             
 tax                                     -          -          -      5,129 
----------------------------------------------------------------------------
                                                                            
Net income (loss)                   (1,330)      (773)    (4,471)     1,562 
                                                                            
Other comprehensive income                                                  
 (loss):                                                                    
  Foreign currency translation                                              
   adjustments to equity               165         98        436        (69)
  --------------------------------------------------------------------------
                                                                            
Other comprehensive income                                                  
 (loss) for the period                 165         98        436        (69)
----------------------------------------------------------------------------
                                                                            
Comprehensive income (loss) for                                             
 the period                      $  (1,165) $    (675) $  (4,035) $   1,493 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Income (loss) per share:                                                    
  Basic                              (0.08)     (0.05)     (0.28)      0.10 
  Diluted                            (0.08)     (0.05)     (0.28)      0.10 
                                                                            
Loss per share from continuing                                              
 operations:                                                                
                                                                            
  Basic                              (0.08)     (0.05)     (0.28)     (0.22)
  Diluted                            (0.08)     (0.05)     (0.28)     (0.22)
----------------------------------------------------------------------------
                                                                            
EQ Inc.                                                                     
Unaudited Consolidated Statements of Cash Flows (In thousands of Canadian   
 dollars)                                                                   
Years ended December 31, 2013 and 2012                                      
                                                             2013       2012
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities:                                       
  Net income (loss)                                    $  (4,471) $   1,562 
  Adjustments to reconcile net income (loss) to net                         
   cash flows from operating activities:                                    
    Depreciation of property and equipment                   273        551 
    Amortization of domain properties and other                             
     intangible assets                                     1,158      3,291 
    Amortization of deferred lease inducements               (41)       (65)
    Share-based payments                                      57         60 
    Foreign exchange loss (gain)                             260        (23)
    Finance cost (income), net                                (8)       718 
    Current income tax recovery                               (2)       (21)
    Deferred income taxes recovery                          (235)      (357)
    Impairment of goodwill and domain properties and                        
     other                                                                  
    intangible assets                                        716          - 
    Gain on sale of property and equipment                     1        (17)
    Gain on sale of domain properties and other                             
     intangible assets                                         -        (59)
    Gain on sale of discontinued operation                     -     (7,402)
    Restructuring                                              -        307 
                                                                            
  Change in non-cash operating working capital               160     (3,292)
  --------------------------------------------------------------------------
  Cash used in operating activities                       (2,132)    (4,747)
  Income taxes received (paid)                                44        (26)
  --------------------------------------------------------------------------
  Net cash used in operating activities                   (2,088)    (4,773)
                                                                            
Cash flows from financing activities:                                       
  Repurchase of common shares under NCIB                       -        (35)
  Repayment of finance leases                               (155)       (89)
  Interest paid                                              (26)      (330)
  --------------------------------------------------------------------------
  Net cash used in financing activities                     (181)      (454)
                                                                            
Cash flows from investing activities:                                       
  Purchase of long-term investment                             -        (50)
  Interest income received                                    34         53 
  Net proceeds from sale of available-for-sale                              
   investments                                                 -        200 
  Proceeds on sale of discontinued operations, net of                       
   cash disposed of                                            -      6,293 
  Decrease in restricted cash and short-term                                
   investments                                                 -        201 
  Net Proceeds from disposal of property and equipment         2         17 
  Net Proceeds from disposal of domain properties              -         82 
  Additions to property and equipment                        (78)      (221)
  Additions to domain properties and other intangible                       
   assets                                                    (51)        (2)
                                                                            
  --------------------------------------------------------------------------
  Net cash from (used in) investing activities               (93)     6,573 
                                                                            
Foreign exchange gain (loss) on cash held in foreign                        
 currency                                                   (260)        23 
----------------------------------------------------------------------------
                                                                            
Increase (decrease) in cash and cash equivalents          (2,622)     1,369 
                                                                            
Cash and cash equivalents, beginning of year               5,419      4,050 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents, end of year                 $   2,797  $   5,419 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...