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™ program,
    establishing EQ as their preferred media buying partner
--  Active campaigns grew 120% during the quarter
--  The Company launched Hercules™, 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
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
EQ Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
[email protected]
www.eqworks.com

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
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous a...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.