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YANGAROO';s Earnings and Revenue Growth Continues Through Third Quarter

^{Published on 2009-11-25 06:04:35 - Market Wire}
 

Delivers First Videos in U.S. and Canada; Q3 Revenues and EBITDA Increase

TORONTO, Nov. 25 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced record results for the third quarter ended September 30, 2009. Revenues for the third quarter of 2009 grew 24% over revenues for the third quarter of 2008. EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of 2009 improved by 36% over the same period in 2008. The loss for the third quarter of 2009 was 19% lower than for the third quarter of 2008.

Revenues for the nine months ended September 30, 2009 have exceeded revenues for the entire 2008 fiscal year. Revenues for this nine month period grew 37% over revenues for the same period in 2008. The loss for the first nine months of 2009 was 25% lower than for the first nine months of 2008 and the corresponding loss per share decreased to $0.02 from $0.03. EBITDA for the first nine months of 2009 improved by 35% over the same period in 2008.

Highlights from the third quarter of 2009 include the delivery of the first full broadcast-quality music videos utilizing DMDS 5.0 in Canada and in the United States, the designation of New York-based Devlin Video International as the first "Certified Sender" for DMDS 5.0, a ruling by a Federal Court in Wisconsin in YANGAROO'S favor on a Motion to Dismiss brought by Defendant Destiny Media Technologies Inc. (OTC:DSNY) in the company's patent infringement and injunction suit, and the signing of a multi-year agreement with The Recording Academy(R) to use DMDS for the GRAMMY(R) Awards.

"With our DMDS 5.0 platform, we are now offering our customers the most advanced solution available for secure digital distribution for music, music videos, television advertising, award shows and television program production, which we expect will drive revenue growth," said YANGAROO President & CEO John Heaven. "The third quarter was marked by two video delivery firsts, including our first revenues from music video delivery. Both major and independent record labels are now using DMDS for music video delivery and we expect these volumes to grow. Our EBITDA improved by 39% over the preceding second quarter of 2009 and we expect our financial results to continue their upward trend."

 Summary of operating results for the periods ended September 30: ------------------------------------------------------------------------- $CDN Nine Months 3rd Quarter ------------------------------------------------------------------------- 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue 604,439 440,790 218,211 175,767 ------------------------------------------------------------------------- Interest income 10,044 121,569 945 28,473 ------------------------------------------------------------------------- EBITDA (1,452,515) (2,236,194) (365,996) (575,468) ------------------------------------------------------------------------- Net loss for the period (1,881,298) (2,503,587) (545,626) (675,672) ------------------------------------------------------------------------- Loss per share (basic & diluted) (0.02) (0.03) (0.01) (0.01) ------------------------------------------------------------------------- 

The 24% increase in revenues in the third quarter, combined with a 13% decrease in total expenses, accounted for the 19% lower loss compared to the third quarter of 2008. A 22% decrease in salaries and consulting expenses accounted for most of the reduction in total expenses. General and administrative expenses were lower by 27% and marketing and promotion expenses decreased 23%, which also contributed to the reduced total expenses. A 40% increase in amortization expenses plus reduced interest income partially offset the lower operating expenses.

The full text of the financial statements and Management Discussion & Analysis is available at [ www.yangaroo.com ] and at [ www.sedar.com ].

In further news, the company's board of directors has granted 150,000 options to three external directors. These options are exercisable at $0.11 per share and expire November 18, 2014. The board of directors has adopted a policy of setting option exercise prices at the greater of the three month weighted average trading price and the closing price on the day before the grant. These options are subject to the usual vesting period as required by the TSX Venture Exchange.

About YANGAROO:

YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS is a Web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of audio and video content for music, music videos, and advertising to television, radio, media, retailers and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.

Named one of Canada's Top 100 Tech Companies for 2009 by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB:YOOIF. For further information, please contact John Heaven at 905-763-3553 or visit [ www.yangaroo.com ].

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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