CONTAGIOUS GAMING ANNOUNCES YEAR END RESULTS FOR 2016
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
VANCOUVER, B.C., July 29, 2016 – Contagious Gaming Inc. (TSX-V: CNS) (“Contagious Gaming” or the “Company”) is pleased to announce the financial results for the three months and fiscal year ended March 31, 2016 (the “2016 Financial Results”) are available on SEDAR. A summary of select highlights from the 2016 Financial Results include:
⦁ a 98% year-over-year revenue growth to $2,311,352 from $1,164,955;
⦁ a 78% quarter-over-quarter revenue growth to $1,207,406 from $678,704;
⦁ an Adjusted EBITDA loss of ($279,795) from ($272,563) in the previous quarter; and,
⦁ an Adjusted Earnings Loss of ($669,843) from ($696,301) in the previous quarter.
“We are pleased to announce the Company’s 2016 Financial Results which show substantial revenue growth over our previous fiscal year, as well as a significant overall improvement as compared to our last quarter’s results. We are seeing continued positive developments since the closing of the Digitote acquisition late in Q3. We now look forward to executing on our growth plans for fiscal 2017, and anticipated improvements of our financial metrics with Digitote being a key component.” commented Peter Glancy, CEO and Director.
The Company’s audited financial statements, notes to the financial statements and Management Discussion and Analysis (“MD&A”) for the three and fiscal year ended March 31, 2016 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, impairment loss, bargain purchase gain, movement in contingent consideration and irrecoverable taxes. 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 year and 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.
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.barragan [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.