SYS-CON MEDIA Authors: Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...