Welcome!

News Feed Item

AcuityAds Reports Second Quarter 2014 Financial Results

Revenue growth with strong results in self-service and US

TORONTO, ONTARIO -- (Marketwired) -- 08/25/14 -- AcuityAds Holdings Inc. ("AcuityAds") (TSX VENTURE:AT), a leading provider of targeted digital advertising solutions, today reported financial results of its wholly-owned subsidiary AcuityAds Inc. ("Acuity") for the second quarter ended June 30, 2014. On July 16, 2014 Acuity became a wholly-owned subsidiary of AcuityAds (formerly Wildlaw Capital CPC 2 Inc. ("Wildlaw")) pursuant to the previously announced closing of a qualifying transaction.

Financial highlights of AcuityAds for the Second Quarter of 2014


--  Revenue of $3,190,037 increased 14% year-over-year 
--  Self-service technology revenue of $300,996 increased 225% year-over-
    year 
--  US revenue of $371,979 increased 73% year-over-year 
--  Adjusted EBITDA(1) of $(1,419,164), down from $56,930 for the prior year
    quarter due to a reduction in the carrying amount of investment tax
    credits by $775,097, accrued transaction costs of $225,000, and
    investments in senior management, sales, marketing, and technology
    development

Business highlights of AcuityAds


--  Key senior management additions 
--  Closed qualifying transaction with Wildlaw 
--  During July, we repaid related party notes of $616,657. In addition we
    received net proceeds from a private placement of $5 million, upon
    satisfaction of all escrow release conditions 
--  AcuityAds began trading on the TSX Venture Exchange ("TSXV")

(1) Adjusted EBITDA is not a measure of performance under IFRS and should   
    not be considered in isolation or as a substitute for net and           
    comprehensive income or loss prepared in accordance with IFRS or as a   
    measure of operating performance or profitability. Adjusted EBITDA does 
    not have a standardized meaning prescribed by IFRS and is not           
    necessarily comparable to similar measures presented by other companies.
    See reconciliation of adjusted EBITDA to net income at the end of this  
    press release.                                                          

"AcuityAds has shown continued revenue growth in the second quarter of 2014, with significant increases in both the self-service and US markets," commented Tal Hayek, CEO of AcuityAds. "With a relatively new presence in major US cities including New York, Los Angeles, Chicago and Dallas, US sales reached 12% of total revenue for the quarter. We anticipate continued growth in self-service technology and the US, while maintaining our leadership position in the Canadian market. During the quarter we also worked towards completing our transaction with Wildlaw, becoming a public company and enhancing our senior management team. We made significant investments in the quarter to put a strong foundation in place, and are now focused on leveraging these investments to deliver strong growth in future quarters."

During the quarter we added the following key people to our senior management team: Cathy Steiner, Chief Financial Officer; Raymond Reid, President AdScience; Ashley Bast, Vice President Marketing; and Funke Fabunmi, Vice President, Ad Operations.

Subsequent to June 30, 2014, the Company received notification from the Canada Revenue Agency ("CRA") that the investment tax credits that were claimed in respect of eligible scientific research and experimental development for fiscal years 2011 and 2012 were being disallowed. The Company expects a Notice of Assessment reflecting this disallowance to be forthcoming in due course. After consulting with its professional advisors, the Company disagrees with the position taken by CRA and intends to file an objection following receipt of the Notice of Assessment. There can be no assurance regarding the outcome of the objection, when a resolution may be reached, or the likelihood that similar claims for 2013 and 2014 will not be similarly challenged by CRA. The Company has reduced the carrying amount of investment tax credits by $775,097 during the period, which is included as a charge to employee compensation and benefits for the three and six months ended June 30, 2014. In the event that the Company's objection for 2011 and 2012 is unsuccessful, no further charges against the Company's profit or loss will be required in respect of claims for those years.

Acuity became a public company pursuant to the transaction with Wildlaw and accordingly, the Federal portion of any SREDs claimed on eligible expenses following the transaction will no longer be refundable but will be carried forward for up to 20 years to reduce future income taxes payable.

AcuityAds also announces that it has granted an aggregate of 460,769 stock options on August 25, 2014 to certain directors, officers and employees of the Company in accordance with the provisions of the Company's Stock Option Plan, subject to approval of the TSXV. Each option entitles the holder to purchase one common share of AcuityAds at an exercise price of $1.59 for a period of five years. Options granted to directors vest immediately and options granted to officers and employees vest equally over three years from the date of grant.

About AcuityAds Holdings Inc.

AcuityAds Holdings is a technology company that has developed a programmatic marketing platform powered by proprietary machine learning technology that allows advertisers to target and connect intelligently with their audiences across online display, video, social and mobile campaigns. With operations in New York, Toronto, Los Angeles, Montreal, Chicago and Dallas, AcuityAds Holdings' customers include both large Fortune 500 enterprises and small to mid-sized businesses. For more information, visit www.acuityads.com.

Cautionary statement regarding forward-looking statements

Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding AcuityAds Holdings's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to AcuityAds Holdings's future outlook and anticipated events, including the anticipated growth in self-service and the US, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving AcuityAds Holdings. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for AcuityAds Holdings or the industry in which it operates are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond AcuityAds Holdings's control, affect the operations, performance and results of AcuityAds Holdings and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in AcuityAds Holdings's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, AcuityAds Holdings undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.


                               AcuityAds Inc.                               
       Condensed consolidated interim statements of financial position      
                       (expressed in Canadian dollars)                      
                                 (unaudited)                                
----------------------------------------------------------------------------
                                                    June 30,   December 31, 
                                                        2014           2013 
----------------------------------------------------------------------------
Assets                                                                      
                                                                            
Current assets:                                                             
  Cash                                             $ 139,912      $ 120,467 
  Accounts receivable                              3,209,223      3,057,764 
  Other current assets (note 13)                     552,061        178,105 
  Investment tax credits receivable (note 12)        450,000      1,091,764 
----------------------------------------------------------------------------
                                                   4,351,196      4,448,100 
Non-current assets:                                                         
  Property and equipment                             652,717        436,232 
                                                                            
----------------------------------------------------------------------------
Total assets                                     $ 5,003,913    $ 4,884,332 
----------------------------------------------------------------------------
                                                                            
Liabilities and Shareholders' Deficiency                                    
                                                                            
Current liabilities:                                                        
  Accounts payable and accrued liabilities                                  
   (note 13)                                     $ 3,720,350    $ 2,359,827 
  Promissory notes payable (note 6)                        -      2,913,133 
  Due to related parties (notes 6 and 9)             616,657              - 
  Current portion of obligations under capital                              
   lease (note 10)                                    91,542              - 
----------------------------------------------------------------------------
                                                   4,428,549      5,272,960 
Non-current liabilities:                                                    
  Promissory notes payable (note 6)                3,925,255              - 
  Due to related parties (notes 6 and 9)                   -        608,249 
  Obligations under capital lease (note 10)          155,407              - 
  Repayable government grant (note 11)               150,000              - 
----------------------------------------------------------------------------
                                                   4,230,662        608,249 
                                                                            
Total liabilities                                  8,659,211      5,881,209 
                                                                            
Shareholders' deficiency                          (3,655,298)      (996,877)
                                                                            
Events after the balance sheet date (notes 9                                
 and 13)                                                                    
Going concern (note 2(a))                                                   
                                                                            
----------------------------------------------------------------------------
Total liabilities and shareholders' deficiency     5,003,913    $ 4,884,332 
----------------------------------------------------------------------------
                                                                            
                               AcuityAds Inc.                               
  Condensed consolidated interim statements of comprehensive income (loss)  
                       (expressed in Canadian dollars)                      
                                 (unaudited)                                
                                                                            
----------------------------------------------------------------------------
                             Three months ended         Six months ended    
                                  June 30                   June 30         
                                 2014         2013         2014         2013
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  Managed services        $ 2,889,041  $ 2,695,218  $ 5,508,149  $ 4,909,083
  Self-service technology     300,996       92,526      458,705       92,526
                         ---------------------------------------------------
                            3,190,037    2,787,744    5,966,854    5,001,609
                                                                            
Operating expenses:                                                         
  Media costs               1,655,606    1,228,371    2,970,700    2,090,244
  Employee compensation                                                     
   and benefits (note 12)   2,460,455      778,881    3,738,591    1,428,484
  General and                                                               
   administrative (note                                                     
   13)                      1,266,056      534,012    1,856,107      971,083
  Depreciation of                                                           
   property and equipment      52,569       21,823       88,862       35,293
----------------------------------------------------------------------------
                            5,434,686    2,563,087    8,654,260    4,525,104
----------------------------------------------------------------------------
                                                                            
Income (loss) from                                                          
 operations                (2,244,649)     224,657   (2,687,406)     476,505
                                                                            
Finance costs (note 4)        180,316       83,898      394,449      163,355
Foreign exchange (gain)                                                     
 loss                         (35,725)      (8,662)      33,035        7,862
----------------------------------------------------------------------------
                              144,591       75,236      427,484      171,217
----------------------------------------------------------------------------
                                                                            
Income (loss) before                                                        
 income taxes              (2,389,240)     149,421   (3,114,890)     305,288
                                                                            
Income taxes                    2,885            -       11,271            -
----------------------------------------------------------------------------
Net income (loss) and                                                       
 comprehensive income                                                       
 (loss) for the period   $ (2,392,125)   $ 149,421 $ (3,126,161)   $ 305,288
----------------------------------------------------------------------------
                                                                            
Net loss per share (note                                                    
 5):                                                                        
  Basic and diluted           $ (0.02)      $ 0.00      $ (0.03)      $ 0.00
                                                                            
----------------------------------------------------------------------------
                                                                            
                               AcuityAds Inc.                               
           Condensed consolidated interim statements of cash flows          
                       (expressed in Canadian dollars)                      
                                 (unaudited)                                
                                                                            
----------------------------------------------------------------------------
                                                Six months ended June 30,   
                                                        2014           2013 
----------------------------------------------------------------------------
                                                                            
Cash flows from (used in) operating                                         
 activities:                                                                
  Net income (loss) for the period              $ (3,126,161)     $ 305,288 
  Adjustments to reconcile net income (loss)                                
   to net cash flows:                                                       
  Depreciation of property and equipment              88,862         35,293 
  Finance costs                                      394,449        163,355 
  Share-based compensation (note 7(a))                54,040         59,652 
Change in non-cash operating working capital:                               
  Accounts receivable                               (151,459)    (1,073,794)
  Other current assets                              (373,956)       (21,011)
  Investment tax credits receivable                  641,764       (235,803)
  Accounts payable and accrued liabilities         1,358,094      1,196,477 
Interest paid                                       (355,097)        (6,123)
----------------------------------------------------------------------------
                                                  (1,469,464)       423,334 
                                                                            
Cash used in investing activities:                                          
  Additions to property and equipment                (41,523)      (370,177)
                                                                            
Cash flows from (used in) financing                                         
 activities:                                                                
  Net proceeds from promissory notes, net of                                
   issuance costs (note 6)                           984,009              - 
  Repayments of amounts due to related                                      
   parties, net                                         (400)      (302,237)
  Repayments of capital leases                       (16,877)             - 
  Proceeds from the issuance of common shares                               
   and warrants                                            -        250,000 
  Proceeds from the exercise of stock options        163,700         16,000 
  Proceeds from the exercise of warrants             250,000              - 
  Proceeds related to repayable government                                  
   grant                                             150,000              - 
----------------------------------------------------------------------------
                                                   1,530,432        (36,237)
----------------------------------------------------------------------------
                                                                            
Increase in cash                                      19,445         16,920 
                                                                            
Cash, beginning of period                            120,467         60,498 
                                                                            
----------------------------------------------------------------------------
Cash, end of period                                $ 139,912       $ 77,418 
----------------------------------------------------------------------------
                                                                            
Supplemental disclosure of non-cash                                         
 transactions:                                                              
Additions to property and equipment under                                   
 capital lease                                     $ 263,826            $ - 
                                                                            
                               AcuityAds Inc.                               
               Reconciliation of Adjusted EBITDA to Net Income              
                       (expressed in Canadian dollars)                      
                                                                            
----------------------------------------------------------------------------
                            Three months ended         Six months ended     
                                 June 30                   June 30          
                                2014         2013         2014         2013 
----------------------------------------------------------------------------
Net income (loss)       $ (2,392,125)   $ 149,421 $ (3,126,161)   $ 305,288 
Adjustments:                                                                
  Finance costs              180,316       83,898      394,449      163,355 
  Foreign exchange loss      (35,725)      (8,662)      33,035        7,862 
  Depreciation of                                                           
   property and                                                             
   equipment                  52,569       21,823       88,862       35,293 
  Income taxes                 2,885            -       11,271            - 
  Share-based                                                               
   compensation               31,152       29,826       54,040       59,652 
  Net (addition)                                                            
   reduction in carrying                                                    
   value of ITC                                                             
   receivable                741,764     (219,376)     641,764     (393,167)
                        ----------------------------------------------------
Total adjustments            972,961      (92,491)   1,233,421     (127,005)
                        ----------------------------------------------------
Adjusted EBITDA         $ (1,419,164)    $ 56,930 $ (1,902,740)   $ 178,283 
----------------------------------------------------------------------------

Contacts:
Spinnaker Capital Markets Inc.
Ali Mahdavi
Managing Director
(416) 962-3300

AcuityAds Inc.
Cathy Steiner
Chief Financial Officer
(416) 218-9888 ext. 305

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
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...