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
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Contextual Analytics of various threat data provides a deeper understanding of a given threat and enables identification of unknown threat vectors. In his session at @ThingsExpo, David Dufour, Head of Security Architecture, IoT, Webroot, Inc., discussed how through the use of Big Data analytics and deep data correlation across different threat types, it is possible to gain a better understanding of where, how and to what level of danger a malicious actor poses to an organization, and to determin...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...
Containers, microservices and DevOps are all the rage lately. You can read about how great they are and how they’ll change your life and the industry everywhere. So naturally when we started a new company and were deciding how to architect our app, we went with microservices, containers and DevOps. About now you’re expecting a story of how everything went so smoothly, we’re now pushing out code ten times a day, but the reality is quite different.
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee A...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...