CONTAGIOUS GAMING ANNOUNCES FILING OF ITS QUARTERLY RESULTS FOR DECEMBER 31, 2015 Q3
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
VANCOUVER, B.C., March 1, 2016 – Contagious Gaming Inc. (TSX-V: CNS) (“Contagious Gaming” or the “Company”) is pleased to announce the filing of its Interim Financial Statements for December 31, 2015 (the “Q3 Financial Results”) on SEDAR.
A summary of select highlights from the Q3 Financial Results include:
• a 214% quarter-over-quarter revenue growth to $678,704 from $215,844;
• a 40% quarter-over-quarter decrease in Adjusted EBITDA loss to ($272,563) from ($456,363); and,
• an adjusted Earnings (Loss) of ($696,301) from ($771,381) in the previous quarter.
“We are pleased to announce the Company’s Q3 Financial Results which show significant improvement to our previous quarter’s results. This improvement is primarily due to the closing of the Digitote acquisition in December 2015. We look forward to further expected improvement of our financial metrics as we report a full quarter of consolidated financials including Digitote’s results,” commented Peter Glancy, CEO and Director.
The Company’s financial statements, notes to the financial statements and Management Discussion and Analysis (“MD&A”) for the three and nine months ended December 31, 2015 are available at www.sedar.com.
The following non-IFRS definitions are used in this news release because management believes that they provide useful information regarding our ongoing operations. Readers are cautioned that the definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to revenues and net loss and comprehensive loss for the period determined in accordance with IFRS or as indicators of performance, liquidity or cash flows. Our method of calculating these measures may differ from the method used by other entities and accordingly our measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions.
• Adjusted EBITDA as by the Company means earnings before interest and financing costs (net of interest income), income taxes, amortization, depreciation, RTO public listing, stock based compensation, stock based marketing compensation, transaction costs and acquisition costs. Management believes that Adjusted EBITDA is a useful measure because it provides information to management about the operating and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures.
• Adjusted Earnings (Loss), as defined by the Company, means net income (loss) plus or minus items of note that management may reasonably quantify and that it believes will provide the reader with a better understanding of the Company’s underlying business performance. For the purposes of the Company’s current quarter MD&A, Adjusted Earnings (Loss) is calculated by adjusting net income (loss) for (i) financing costs related to extinguished debt, (ii) stock based compensation, (iii) stock based marketing compensation, (iv) RTO public listing, (v) transaction costs and (vi) acquisition related costs. Management believes that Adjusted Earnings (Loss) is an important indicator of the issuer’s ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures and uses the metric for this purpose. Adjusted Earnings (Loss) is also used by investors and analysts for the purpose of valuing an issuer.
During the current quarter, the Company modified its definition of Adjusted EBITDA by adjusting its earnings by acquisition related costs. Acquisition costs include professional fees, travel, due diligence and other costs incurred in the process of identifying and investigating acquisition targets and negotiating acquisition contracts. Acquisition costs are not considered to be the Company’s normal operating costs, therefore the Company believes that to measure the Company’s core business performance and liquidity it is important to include this adjustment in determination of Adjusted EBITDA.
The intent of Adjusted EBITDA, Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per Share is to provide additional useful information to investors and analysts and these measures do not have any standardized meaning under IFRS. Adjusted EBITDA, Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per Share should therefore not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA, Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per Share differently.
A reconciliation of the adjusted measures noted above to results of operations under IRFS is included in the “Discussion of Operations” section of the Company’s MD&A.
About Contagious Gaming
Contagious Gaming Inc. (TSX-V: CNS) is a trusted software developer focused on providing dynamic gaming solutions regulated gaming operators and lotteries around the world. Contagious Gaming offers sports betting, pool betting and iGaming solutions targeted at the online retail and mobile gaming markets. Our unique offering of content and technology can be delivered as a fully integrated service across a single, modern customer platform or can be offered as standalone verticals.
For more information on Contagious Gaming please visit www.contagiousgaming.com.
For further information please contact:
Craig Loverock, Chief Financial Officer
Email: craig.loverock [at] contagiousgaming [dot] com
Phone: (647) 984-1244
Justin Barragan, Corporate Development
Email: justin.barragam [at] contagiousgaming [dot] com
Phone: (647) 886-8551
Neither the 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.
Certain information in this news release is considered forward-looking within the meaning of certain securities laws and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.