Science & Technology
Science and Technology
Science and Technology
Tue, December 15, 2009
Mon, December 14, 2009 PNI Digital Media Announces Fiscal 2009 Year-End and Fourth Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2009) - PNI Digital Media (TSX VENTURE:PN)(OTCBB:PNDMF), ("PNI" or the "Company"), the leading innovator in digital media solutions for retailers announced revenue for the full year Fiscal 2009 was $24.4 million, representing an increase of 43% over the same period last year. Non-GAAP adjusted EBITDA1 for the year was $6.2 million, compared to a non-GAAP adjusted EBITDA loss of $2.2 million during Fiscal Year 2008. Furthermore, PNI Digital Media transacted a record 14.6M orders for the year, an increase of 94% compared to Fiscal Year 2008.
Fourth Quarter revenue was also a record for a non-holiday quarter with the quarter coming in at $6.8 million and generating non-GAAP adjusted EBITDA of $2.2 million or $0.06 per share. The Company posted a GAAP profit of $0.6 million for the Quarter and Earnings Per Share of $0.02.
PNI Digital Media will host a conference call today, Monday, December 14th at 4:30pm ET (1:30pm PT) to discuss the company's Fiscal 2009 year-end and fourth quarter financial results. Investors and interested parties should dial 1 (888)-300-8196 (US/Canada) or 1 (647)-427-3426 (International) and quote conference ID no. 39626339. Please call 10 minutes prior to the scheduled start time. PNI Digital Media will also provide a live webcast, available at the company's website [ http://www.pnimedia.com/webcast ].
All amounts are expressed in Canadian dollars. This notice is qualified in its entirety by reference to the company's financial statements and accompanying management discussion and analysis, which are accessible on the SEC'S website at [ www.sec.gov/edgar.shtml ] and on SEDAR at [ www.sedar.com ].
"In addition to strong revenue results and the near doubling of transactions processed this past year, PNI had its highest EBITDA generating, non-holiday quarter in company history," said Kyle Hall, Chief Executive Officer of PNI Digital Media. "We generated positive cash flow in each quarter of Fiscal 2009 while reducing cash expenses by 1% year over year. We remain committed to increasing positive cash flow going forward."
Financial Highlights:
FY 2009
- Record revenues of $24.4 million in Fiscal 2009 compared to $17 million in Fiscal 2008
- Transactional revenue of $18.1 million, an increase of 56% year-on-year
- Transaction fees representing 74% of total revenue vs. 68% during Fiscal 2008
- Non-GAAP adjusted EBITDA of $6.2 million in Fiscal 2009, compared to a non-GAAP adjusted EBITDA loss of ($2.2) million during Fiscal 2008
- Non-GAAP adjusted EBITDA per share of $0.18 compared to a non-GAAP adjusted EBITDA loss per share of ($0.07) in fiscal 2008
Fourth Quarter 2009
- Record revenue for Q4 2009 of $6.8 million compared to $5.3 million in Q4 of Fiscal 2008
- Record non-GAAP adjusted EBITDA of $2.2 million for Q4 2009 compared to an adjusted EBITDA loss of ($0.2) million in Q4 of fiscal 2008
- Profit of $0.6 million for Q4 2009 compared to a loss of ($2.7) million for Q4 2008
- Earnings per share on a GAAP basis for Q4 2009 of $0.02 compared to a loss of ($0.08) in Q4 2008
- Non-GAAP adjusted EBITDA per Share for Q4 2009 of $0.06 compared to a loss of ($0.01) in Q4 2008
Notes:
1– Adjusted EBITDA is a non-GAAP financial measure which the Company defines as net loss plus amortization, interest expense, tax expense, share-based compensation expense and un-realized foreign exchange loss (gain). A full reconciliation of the Company's results between these non-GAAP figures and the results in accordance with GAAP is included on page 16 of our MD&A.
PNI Digital Media Inc.
Consolidated Balance Sheets
| September 30, 2009 | September 30, 2008 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ 4,237,284 | $ 2,670,988 | ||
| Accounts receivable | 4,855,114 | 4,019,286 | ||
| Prepaid expenses and other current assets | 312,687 | 430,616 | ||
| 9,405,085 | 7,120,890 | |||
| Property and equipment | 6,174,920 | 6,786,650 | ||
| Deferred expenses | - | 52,882 | ||
| Intangible assets | 3,892,211 | 5,164,492 | ||
| Goodwill | 1,664,759 | 1,498,539 | ||
| $ 21,136,975 | $ 20,623,453 | |||
| Liabilities | ||||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | $ 7,785,812 | $ 7,480,801 | ||
| Purchase consideration payable | 869,803 | - | ||
| Current portion of deferred revenue | 410,088 | 658,045 | ||
| Current portion of capital lease obligations | 490,072 | 490,072 | ||
| Loan payable | 937,548 | 969,886 | ||
| Asset retirement obligation | 41,503 | - | ||
| 10,534,826 | 9,598,804 | |||
| Deferred revenue | 195,059 | 363,108 | ||
| Long-term portion of capital lease obligations | 38,500 | 375,875 | ||
| Restructuring liability | 176,056 | - | ||
| Asset retirement obligations | - | 22,009 | ||
| 10,944,441 | 10,359,796 | |||
| Shareholders' Equity | ||||
| Share capital | $ 66,017,456 | $ 65,614,347 | ||
| Warrants | - | 4,961,826 | ||
| Contributed surplus | 18,521,086 | 11,611,165 | ||
| 84,538,542 | 82,187,338 | |||
| Deficit | (72,536,814) | (70,767,148) | ||
| Accumulated other comprehensive loss | (1,809,194) | (1,156,533) | ||
| (74,346,008) | (71,923,681) | |||
| 10,192,534 | 10,263,657 | |||
| $ 21,136,975 | $ 20,623,453 | |||
PNI Digital Media Inc.
Consolidated Statements of Loss and Comprehensive Loss
| 2009 | 2008 | 2007 | |||
| Revenue | $ 24,446,569 | $ 17,049,587 | $ 7,511,328 | ||
| Expenses | |||||
| Network delivery | 6,672,583 | 7,409,525 | 2,523,174 | ||
| Software development | 7,566,227 | 6,914,291 | 4,178,111 | ||
| General and administration | 4,893,640 | 4,480,258 | 3,199,727 | ||
| Sales and marketing | 1,202,699 | 1,140,028 | 1,134,350 | ||
| Amortization of intangible assets | 3,243,359 | 3,214,908 | 574,184 | ||
| Amortization of property and equipment | 2,770,357 | 2,044,145 | 649,270 | ||
| 26,348,865 | 25,203,155 | 12,258,816 | |||
| Loss from operations before the undernoted | (1,902,296) | (8,153,568) | (4,747,488) | ||
| Realized foreign exchange gain (loss) | 115,526 | 53,818 | (365,474) | ||
| Unrealized foreign exchange gain (loss) | 435,467 | 407,223 | (1,349,690) | ||
| Interest income | 8,759 | 134,848 | 393,416 | ||
| Interest expense | (219,951) | (123,192) | - | ||
| Loss on disposal of property, plant & equipment | (56,171) | (35,698) | - | ||
| Gain on settlement of asset retirement obligation | - | 86,120 | - | ||
| Goodwill impairment (note 8) | - | (1,086,577) | - | ||
| 283,630 | (563,458) | (1,324,748) | |||
| Loss before income taxes | (1,618,666) | (8,717,026) | (6,072,236) | ||
| Income tax expense | (151,000) | - | - | ||
| Net loss | (1,769,666) | (8,717,026) | (6,072,236) | ||
| Other comprehensive loss: | |||||
| Unrealized foreign exchange loss on translation of self- sustaining foreign operations | (652,661) | (346,964) | (809,569) | ||
| Comprehensive loss | $ (2,422,327) | $ (9,063,990) | $ (6,881,805) | ||
| Basic and fully diluted net loss per share | $ (0.05) | $ (0.26) | $ (0.20) | ||
| Weighted average number of common shares outstanding | 33,610,843 | 33,383,866 | 29,877,739 |
PNI Digital Media Inc.
Non-GAAP Adjusted EBITDA Reconciliation
The following table provides a reconciliation of the Company's profit or (loss) reported in accordance with GAAP to non-GAAP Adjusted EBITDA.
| Three Months Ended | ||
| September 30, 2009 | September 30, 2008 | |
| Net profit (loss) in accordance with GAAP | $ 642,806 | $ (2,714,584) |
| Amortization | 1,473,805 | 2,289,068 |
| Interest expense | 52,799 | 108,010 |
| Income tax expense | 151,000 | - |
| Stock based compensation expense | 449,691 | 445,584 |
| Unrealized foreign exchange (gain) | (632,708) | (334,674) |
| Adjusted EBITDA | $ 2,137,393 | $ (206,596) |
| Twelve Months Ended | ||
| September 30, 2009 | September 30, 2008 | |
| Net (loss) in accordance with GAAP | $ (1,769,666) | $ (8,717,026) |
| Amortization | 6,013,716 | 5,259,053 |
| Interest expense | 219,951 | 123,192 |
| Income tax expense | 151,000 | |
| Stock based compensation expense | 2,016,015 | 1,511,504 |
| Unrealized foreign exchange (gain) | (435,467) | (407,223) |
| Adjusted EBITDA | $ 6,195,549 | $ (2,230,500) |
Non-GAAP MeasuresThe Company continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, the Company uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. The primary non-GAAP financial measures utilized by the Company include adjusted EBITDA and adjusted EBITDA per share. Adjusted EBITDA is defined as earnings before interest expense, taxes, depreciation, amortization, unrealized foreign currency gains and losses and stock-based compensation.
To supplement the Company's consolidated financial statements presented on a GAAP basis, we believe that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results, develop budgets, manage expenditures, and determine employee compensation. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to net income (loss) or net income (loss) per share determined in accordance with GAAP.
PNI Digital Media Inc.
Consolidated Statement of Profit (Loss) by Quarter
| Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Total | |
| Revenue | $7,176,333 | $5,015,041 | $5,443,760 | $6,811,436 | $24,446,569 |
| Expenses | |||||
| Software development | 1,810,956 | 1,843,612 | 1,866,661 | 2,044,998 | 7,566,227 |
| General and administration | 988,226 | 1,141,451 | 1,211,004 | 1,552,960 | 4,893,640 |
| Network delivery | 2,371,794 | 1,641,783 | 1,302,234 | 1,356,772 | 6,672,583 |
| Sales and marketing | 322,864 | 346,240 | 297,921 | 235,674 | 1,202,699 |
| Amortization | 1,399,028 | 1,521,834 | 1,619,049 | 1,473,804 | 6,013,716 |
| 6,892,868 | 6,494,921 | 6,296,868 | 6,664,208 | 26,348,865 | |
| Profit (Loss) before the undernoted | 283,465 | (1,479,880) | (853,109) | 147,228 | (1,902,296) |
| Realized foreign exchange (loss) gain | 149,826 | 124,723 | (280,411) | 121,388 | 115,526 |
| Unrealized foreign exchange (loss) gain | 564,460 | (66,691) | (695,010) | 632,707 | 435,467 |
| Interest income | 6,998 | 671 | 363 | 728 | 8,759 |
| Interest expense | (63,380) | (53,947) | (49,825) | (52,799) | (219,951) |
| Loss on disposal of property and equipment | (725) | - | (55,447) | (56,171) | |
| 657,179 | 4,756 | (1,024,883) | 646,577 | 283,630 | |
| Profit (Loss) before income taxes | 940,644 | (1,475,124) | (1,877,992) | 793,805 | (1,618,666) |
| Future income tax recovery | - | - | - | (151,000) | (151,000) |
| Net Profit (Loss) | $940,644 | $(1,475,124) | $(1,877,992) | $642,805 | $(1,769,666) |
| Non-GAAP Adjusted EBITDA | $2,291,975 | $663,916 | $1,102,265 | $2,137,393 | $6,195,549 |
| Non-GAAP Adjusted EBITDA per share | $0.07 | $0.02 | $0.03 | $0.06 | $0.18 |
About PNI Digital Media - The world's top retailers partner with PNI Digital Media to offer personalized products such as photo prints, photo books and gifts, personalized stationery and business cards for pick-up in as little as one hour. PNI Digital Media successfully generates millions of transactions each year for retailers and their thousands of locations worldwide.
For more information please visit [ www.pnimedia.com ].
The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. PNI Digital Media's actual results could differ materially for those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in technology, employee retention, inability to deliver on contracts, failure of customers to continue marketing the online solution, competition, general economic conditions, foreign exchange and other risks detailed in the Company's annual report and other filings. Additional information related to the Company can be found on SEDAR at [ www.sedar.com ] and on the SEC'S website at [ www.sec.gov/edgar.shtml ]. The information contained herein is subject to change without notice. PNI Digital Media shall not be liable for technical or editorial errors or omissions contained herein.
PNI Digital Media relies upon litigation protection for "forward-looking" statements.
The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
