TORONTO, Dec. 2, 2015 /CNW/ - Redknee Solutions
Inc. (TSX: RKN) a leading provider of real-time
monetization and subscriber management software, reported results
for its fiscal fourth quarter and annual financial results for the
year ended September 30, 2015. All figures are in U.S.
dollars.
Fiscal Q4 2015 Financial Highlights
(Comparisons
made between fiscal Q4FY2015 and fiscal Q4FY2014 results, unless
otherwise noted)
- Revenue totalled $59.8 million
($67.1 million, on a constant
currency basis), compared to $60.9
million
- Gross profit was $34.6 million
(58% of total revenue) compared to $36.1
million (59% of total revenue)
- Adjusted EBITDA of $7.7 million
(13% of total revenue) versus Adjusted EBITDA of $5.8 million (10% of total revenue)
- Recurring revenue was 44% of total revenue, compared to
47%
- Net loss was $4.4 million or
$0.04 loss per share versus a net
loss of $34.7 million or $0.32 loss per share
- Available liquidity as at September
30th, 2015 of $101 million,
including $61 million of cash
Fiscal 2015 Financial Highlights
(Comparisons made
between fiscal 2015 and fiscal 2014 results, unless otherwise
noted)
- Revenue totalled $222.7 million
($246.3 million, on a constant
currency basis) compared to $257.7
million
- Gross profit was $130.5 million
(59% of total revenue) compared to $131.8
million (51% of total revenue)
- Adjusted EBITDA of $34.4 million
(15% of total revenue) versus Adjusted EBITDA of $13.8 million (5% of total revenue)
- Recurring revenue was 46% of total revenue, compared to
47%
- Net loss was $10 million or
$0.09 loss per share versus a net
loss of $39.9 million or $0.39 loss per share
- Order backlog of $158.5 million
at September 30, 2015 ($166.6 million, on a constant currency
basis)
Fiscal Q4 2015 Operational Highlights
- Won a multi-million dollar contract to assist a North American
Operator with its MVNE strategy
- Announced a partnership with Elster to offer a combined prepaid
energy solution
- VMware awarded Redknee the IT Excellence Award for Software
Defined Networking
- Recognized as one of the fastest growing North American
companies in the 2015 Deloitte Fast 50 and Fast 500
- Won the 2015 Stratecast | Frost & Sullivan Competitive
Strategy Innovation and Leadership Award for CSP Billing
- 151 patents granted and 37 patents filed
- Completed Orga Systems acquisition on July 31, 2015
Management Commentary
"In fiscal 2015, we have achieved our strategic priorities,
winning five new customers, closing the Orga Systems acquisition,
and driving meaningful improvements in margins, business mix, and
cash flow," said Lucas Skoczkowski, CEO of Redknee. "Moreover, we
have grown our core business organically year over year in excess
of the estimated BSS market growth of 3-5%, after taking into
consideration the impact of both FX and expected discontinued
customer business acquired from NSN. With the integration of
Orga Systems well underway, we have already begun to see the
benefit from the stronger presence, additional resources and
products gained from this acquisition. Redknee is uniquely
positioned to pursue opportunities across our core communications
market in addition to supporting the monetization opportunity
related to the Internet of Things."
Mr. Skoczkowski added: "Redknee continues to receive strong
validation for our innovative software offering, having won a
number of industry awards as well as being recognized in Deloitte's
Fast 50 and Fast 500 as one of the fastest growing companies in
North America this year. We look
forward to an exciting year in 2016, as we continue to deliver
innovative software solutions, high quality customer service and
focus on continuing the business improvements we have delivered in
2015."
Fiscal Q4 2015 Financial Results
Revenue was $59.8 million ($67.1
million on a constant currency basis) compared
to $60.9 million in the same year-ago quarter. The change
in revenue compared to the prior year period resulted mainly from
the impact of foreign exchange variation, as well as lower support
revenue due to the expected non-renewal of certain support
contracts, offset by additional revenue from the Orga
acquisition.
Recurring revenue was 44% of total revenue, compared to 47% in
the same year-ago quarter.
Gross margin was 34.6 million or 58% compared to $36.1 million or 59% in the same year-ago
quarter.
Adjusted EBITDA was $7.7 million, or 13% of
revenue, compared to Adjusted EBITDA of $5.8 million, or 10% of revenue, in the same
year-ago quarter (see discussion about the presentation of
Adjusted EBITDA, a non-IFRS measure, below).
Net loss totalled $4.4 million, or $0.04 loss per
basic and diluted share compared to a net loss of $34.7 million, or $0.32 loss per
basic and diluted share, in the same year-ago quarter. The net loss
in fiscal 2014 included $22.5 million
of restructuring.
Fiscal 2015 Financial Results
Revenue was $222.7 million ($246.3
million on a constant currency basis) compared
to $257.7 million in fiscal 2014. The change in revenue
compared to the prior year period resulted mainly from the impact
of foreign exchange variation, as well as lower support revenue due
to the expected non-renewal of certain support contracts.
Order backlog declined 6% to $158.5
million ($166.6 million on a
constant currency basis) compared to $169.2
million in fiscal 2014.
Recurring revenue was 46% of total revenue, compared to 47% in
fiscal 2014.
Gross margin was $130.5 million or
59% compared to $131.8 million or 51%
in fiscal year 2014.
Adjusted EBITDA was $34.4 million, or 15% of
revenue, compared to Adjusted EBITDA of $13.8 million, or 5% of revenue, in fiscal
2014 (see discussion about the presentation of Adjusted
EBITDA, a non-IFRS measure, below).
Net loss totalled $10.0 million, or $0.09
loss per basic and diluted share compared to a net loss
of $39.9 million, or $0.39
loss per basic and diluted share, in fiscal 2014. The net loss
included $22.5 million of
restructuring costs incurred over the last year.
At September 30, 2015, total cash
ended at $61.0 million. Cash from
operations totalled $13.7 million,
excluding restructuring payments of $14.5
million incurred in the year.
Normal Course Issuer Bid
The Company also announced acceptance by the Toronto Stock
Exchange ("TSX") of the Company's notice of intention to make a
normal course issuer bid (the "NCIB") in the open market through
the facilities of the TSX and alternative Canadian trading systems.
Pursuant to the TSX notice, the Company proposes to purchase,
from time to time, up to an aggregate of 9,437,270 common shares on
the TSX, which is the maximum number of shares permitted to be
purchased under the TSX rules, being 10% of the public float for
the Company's common shares of 94,372,700 common shares.
The specific timing and number of common shares purchased
pursuant to the NCIB will vary based on market conditions,
regulatory requirements and other factors. The Company will not
purchase more than 62,698 common shares on the same trading day,
which represents 25% of the average daily trading volume of the
common shares during the last six months of 250,794 common shares.
The price that the Company will pay for any common shares will be
the prevailing market price of such shares on the TSX at the time
of acquisition. The purchases will be made by the Company in
accordance with the TSX rules and policies. All common shares
purchased by the Company pursuant to the NCIB will be cancelled.
The Company did not purchase any common shares during its previous
normal course issuer bid.
The Board of Directors of the Company believes that, from time
to time, the market price of the common shares may not reflect
their underlying value and, therefore, that the NCIB is in the best
interests of the Company and is a desirable use of corporate
funds.
Purchases over the TSX may commence on December 7, 2015 and the NCIB will expire on
December 6, 2016. As of
November 24, 2015, the Company had
109,230,576 issued and outstanding common shares.
The Company has entered into an issuer automatic purchase plan
agreement (the "Plan") in respect of the NCIB with a broker firm
(the "Broker") responsible for making purchases of common shares
pursuant to the Plan. Under the Plan, the Broker will have sole
discretion to purchase common shares pursuant to the NCIB during
trading black-out periods established under the Company's Insider
Trading Policy, subject to the price limitations and other terms of
the Plan and the rules of the TSX. The Plan has been approved by
the TSX.
Please refer to the section regarding forward-looking statements
which form an integral part of this release. These results, along
with the annual audited consolidated financial statements and the
Company's MD&A, are available on the Company's website at
www.redknee.com and on SEDAR at www.sedar.com.
Conference Call
The company will host a conference call tomorrow (December 3, 2015) to discuss these results.
CEO Lucas Skoczkowski and CFO David
Charron will host the presentation starting at 8:30 a.m.
Eastern time. A question and answer session will follow
management's presentation.
Date: Thursday December 3, 2015
Time: 8:30 a.m. Eastern time (5:30
a.m. Pacific time)
Dial-In Number: 1 (888) 231-8191
International: 1 (647) 427-7450
Conference ID#: 56592314
The presentation will be webcast live and available for replay
via either the Investors section of Redknee's website
(www.redknee.com) or http://bit.ly/1FTbFsM.
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization.
If you have any difficulty connecting with the conference call,
please contact NATIONAL | Equicom at 1 (416) 815-0700, ext.
253.
A replay of the call will be available until 12:00 midnight
(EST) Thursday, December 10,
2015.
Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 56592314
About Redknee Solutions
Inc.
Redknee monetizes today's digital world. We provide a complete
portfolio of mission-critical monetization and subscriber
management solutions and services that allow communications service
providers, utility companies, auto makers and enterprise businesses
of all types to charge for things in new and innovative ways.
Redknee's real-time billing, charging, policy and customer care
offerings provide the agility and scalability to drive a unique
user experience, increase profitability and support any new product
or business model. Available on premise, cloud-based, or as a
Software-as-a-Service, Redknee's low-risk, flexible solutions power
more than 250 businesses across the globe. Established in
1999, Redknee Solutions Inc. (TSX: RKN) is the parent of the
wholly-owned operating subsidiary Redknee Inc. and its various
subsidiaries. References to Redknee refer to the combined
operations of those entities. For more information about Redknee
and its solutions, please go to www.redknee.com.
Non-IFRS Measures
The Company reports "Adjusted EBITDA", which is not a financial
measure calculated and presented in accordance with International
Financial Reporting Standards (IFRS), and should not be considered
in isolation or as a substitute to net income (loss), operating
income or any other financial measures of performance calculated
and presented in accordance with IFRS, or as an alternative to cash
flow from operating activities as a measure of liquidity. The
Company defines Adjusted EBITDA as net income (loss) excluding
amounts for depreciation and amortization, other income, finance
costs, finance income, income tax expense (recovery), foreign
exchange gain (loss), share-based compensation, restructuring costs
and acquisition and related costs. "Recurring revenue," is not a
financial measure calculated and presented in accordance with IFRS
and should not be considered in isolation or as a substitute to
revenue. Recurring revenue includes revenue from support and
maintenance agreements, long term service agreements, and
term-based product licenses and software subscription.
"Order backlog" relates to contractual commitments as at
period end, pending to be delivered and will be recognized as
revenue in future periods. Order backlog is not a financial
measure calculated and presented in accordance with IFRS and should
not be considered in isolation or as a substitute to
revenue.
The "constant currency" presentation, which is a non-GAAP
measure, excludes the impact of fluctuations in foreign currency
exchange rates. The Company calculates constant currency by
converting the current period local currency financial results
using the comparative period exchange rates.
Other companies (including competitors) may define Adjusted
EBITDA, recurring revenue, and order backlog differently. The
company presents Adjusted EBITDA, recurring revenue, and order
backlog because management believes these to be important
supplemental measures of performance that are commonly used by
securities analysts, investors and other interested parties in the
evaluation of companies in Redknee's industry. Management uses this
information internally for forecasting and budgeting. It may not be
indicative of the historical operating results of Redknee nor is it
intended to be predictive of potential future results.
See "Reconciliation of Net Income (Loss) to Adjusted
EBITDA" below for further information on this
non-IFRS measure.
Forward-Looking Statements
Certain statements in this document may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used
in this document, such statements use such words as "may," "will,"
"expect," "continue," "believe," "plan," "intend," "would,"
"could," "should," "anticipate" and other similar terminology.
Forward-looking statements are provided for the purpose of
providing information about management's current expectations and
plans relating to the future. Persons reading this news release are
cautioned that such information may not be appropriate for other
purposes.
Such forward-looking statements include statements respecting
anticipated revenues in Q4 FY15 under a new license expansion
contract, reduction in annual expenses in fiscal 2015 and 2016 and
no direct impact on customer service or the Company's product
development, expansion of Adjusted EBITDA, future opportunities in
the company's core communication and non-telecom monetization
businesses, improvement in margin with an increase in revenue from
higher-margin software license deals as well as statements
regarding Redknee's future plans, objectives or performance for the
current period and subsequent periods and regarding the markets for
our products. These statements reflect current assumptions and
expectations regarding future events and operating performance and
speak only as of the date of this document. Forward-looking
statements involve significant risks and uncertainties, should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether or not such
results will be achieved. A number of factors could cause actual
results to vary significantly from the results discussed in the
forward-looking statements, including, but not limited to, the
failure of demand for Redknee's products to develop as anticipated,
the failure to obtain customer orders or meet customer
requirements, the inability of Redknee's products to perform as
expected, the inability of Redknee to achieve anticipated cost
savings in the time frames and to the extent anticipated,
unanticipated negative impacts on customer service or product
development as a result of costs savings implemented, a material
adverse change in the affairs of Redknee, and the factors discussed
under the "Risk Factors" section of Redknee's most recently filed
AIF which is available on SEDAR at www.sedar.com and on
Redknee's web-site at www.redknee.com. Other unknown or
unpredictable factors or underlying assumptions subsequently
proving to be incorrect could cause actual results to differ
materially from those in the forward-looking statements. Redknee
does not undertake or accept any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change
in events, conditions or circumstances on which any such statement
is based, except as required by law.
REDKNEE SOLUTIONS
INC.
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Position
|
|
|
|
|
|
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
55,047,577
|
|
$
|
108,636,797
|
|
Trade accounts and
other receivables
|
|
|
|
|
67,439,885
|
|
|
71,393,983
|
|
Unbilled
revenue
|
|
|
|
|
38,612,499
|
|
|
42,396,988
|
|
Prepaid
expenses
|
|
|
|
|
2,535,936
|
|
|
4,339,650
|
|
Income taxes
receivable
|
|
|
|
|
1,399,564
|
|
|
426,478
|
|
Other
assets
|
|
|
|
|
392,195
|
|
|
898,871
|
|
Inventories
|
|
|
|
|
812,987
|
|
|
5,199,362
|
|
Total current
assets
|
|
|
|
|
166,240,643
|
|
|
233,292,129
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
|
|
5,972,087
|
|
|
881,940
|
Property and
equipment
|
|
|
|
|
8,435,008
|
|
|
8,708,115
|
Deferred income
taxes
|
|
|
|
|
4,286,459
|
|
|
1,939,416
|
Investment tax
credits
|
|
|
|
|
351,385
|
|
|
416,222
|
Other
assets
|
|
|
|
|
1,816,640
|
|
|
2,089,688
|
Intangible
assets
|
|
|
|
|
44,821,478
|
|
|
32,819,313
|
Goodwill
|
|
|
|
|
30,829,220
|
|
|
7,638,590
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
$
|
262,752,920
|
|
$
|
287,785,413
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Trade
payables
|
|
|
|
$
|
9,128,710
|
|
$
|
9,538,161
|
|
Accrued
liabilities
|
|
|
|
|
32,305,136
|
|
|
38,566,558
|
|
Provisions
|
|
|
|
|
8,772,519
|
|
|
14,967,576
|
|
Income taxes
payable
|
|
|
|
|
2,364,983
|
|
|
2,022,047
|
|
Deferred
revenue
|
|
|
|
|
12,911,824
|
|
|
20,743,769
|
|
Settlement accrual
and contingent consideration
|
|
|
|
|
10,244,224
|
|
|
14,454,527
|
|
Loans and
borrowings
|
|
|
|
|
1,800,000
|
|
|
750,000
|
|
Total current
liabilities
|
|
|
|
|
77,527,396
|
|
|
101,042,638
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
|
|
870,937
|
|
|
3,601,859
|
Other
liabilities
|
|
|
|
|
2,615,163
|
|
|
2,281,341
|
Pension and other
long-term employment benefit plans
|
|
|
|
|
11,417,481
|
|
|
10,258,900
|
Loans and
borrowings
|
|
|
|
|
54,961,066
|
|
|
45,809,713
|
Provisions
|
|
|
|
|
4,006,354
|
|
|
6,608,270
|
Deferred income
taxes
|
|
|
|
|
-
|
|
|
36,016
|
Total
liabilities
|
|
|
|
|
151,398,397
|
|
|
169,638,737
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
|
174,082,815
|
|
|
173,757,863
|
|
Treasury
stock
|
|
|
|
|
(141,917)
|
|
|
(21,226)
|
|
Contributed
surplus
|
|
|
|
|
7,899,360
|
|
|
5,665,135
|
|
Deficit
|
|
|
|
|
(67,086,722)
|
|
|
(57,080,147)
|
|
Accumulated other
comprehensive income
|
|
|
|
|
(3,399,013)
|
|
|
(4,174,949)
|
|
Total shareholders'
equity
|
|
|
|
|
111,354,523
|
|
|
118,146,676
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
|
$
|
262,752,920
|
|
$
|
287,785,413
|
REDKNEE SOLUTIONS
INC.
|
|
|
|
|
|
|
Consolidated
Statements of Comprehensive Loss
|
|
|
|
|
|
|
(Expressed in U.S.
dollars, except per share and share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended September
30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Software, services
and other
|
|
$
|
130,179,681
|
|
$
|
138,821,757
|
|
Support and
subscription
|
|
|
92,560,729
|
|
|
118,875,723
|
|
|
|
222,740,410
|
|
|
257,697,480
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
92,192,264
|
|
|
125,911,517
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
130,548,146
|
|
|
131,785,963
|
|
|
|
|
|
|
|
Operating
expenditures:
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
34,128,382
|
|
|
37,599,559
|
|
General and
administrative
|
|
|
28,364,951
|
|
|
32,387,711
|
|
Research and
development
|
|
|
48,030,270
|
|
|
62,214,327
|
|
Acquisition and
related costs
|
|
|
6,212,222
|
|
|
7,197,617
|
|
Restructuring
costs
|
|
|
1,095,454
|
|
|
22,524,612
|
|
|
|
117,831,279
|
|
|
161,923,826
|
|
|
|
|
|
|
|
Income (Loss) from
operations
|
|
|
12,716,867
|
|
|
(30,137,863)
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
|
|
(9,948,211)
|
|
|
(5,590,285)
|
Other
income
|
|
|
–
|
|
|
4,065,422
|
Finance
income
|
|
|
31,633
|
|
|
45,129
|
Finance
costs
|
|
|
(5,172,039)
|
|
|
(3,047,129)
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(2,371,750)
|
|
|
(34,664,726)
|
|
|
|
|
|
|
|
Income tax expense
(recovery):
|
|
|
|
|
|
|
|
Current
|
|
|
7,754,139
|
|
|
4,001,874
|
|
Deferred
|
|
|
(119,314)
|
|
|
1,230,925
|
|
|
|
7,634,825
|
|
|
5,232,799
|
|
|
|
|
|
|
|
Loss for the
year
|
|
|
(10,006,575)
|
|
|
(39,897,525)
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Items that will not
be reclassified to net income:
|
|
|
|
|
|
|
|
|
Actuarial gain (loss)
on pension and non-pension
|
|
|
|
|
|
|
|
|
|
post-employment
benefit plans, (net of income
|
|
|
|
|
|
|
|
|
|
tax (recovery)
expense of nil (2014 - ($2,063,711))
|
|
|
775,936
|
|
|
(5,671,980)
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
$
|
(9,230,639)
|
|
$
|
(45,569,505)
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09)
|
|
$
|
(0.39)
|
|
Diluted
|
|
|
(0.09)
|
|
|
(0.39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares:
|
|
|
|
|
|
|
|
Basic
|
|
|
109,111,052
|
|
|
102,921,881
|
|
Diluted
|
|
|
109,111,052
|
|
|
102,921,881
|
|
|
|
|
|
|
|
|
REDKNEE SOLUTIONS
INC.
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended September
30, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
Loss for the
year
|
|
|
|
$
|
(10,006,575)
|
|
$
|
(39,897,525)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
|
|
3,694,373
|
|
|
5,454,417
|
|
|
Amortization of
intangible assets
|
|
|
|
|
7,189,337
|
|
|
7,046,386
|
|
|
Finance
income
|
|
|
|
|
(31,633)
|
|
|
(45,129)
|
|
|
Finance
costs
|
|
|
|
|
5,172,039
|
|
|
3,047,129
|
|
|
Income tax
expense
|
|
|
|
|
7,634,825
|
|
|
5,232,799
|
|
|
Unrealized foreign
exchange loss
|
|
|
|
|
6,284,482
|
|
|
1,745,691
|
|
|
Share-based
compensation
|
|
|
|
|
3,539,364
|
|
|
1,678,600
|
|
|
Pensions
|
|
|
|
|
1,768,978
|
|
|
1,708,874
|
|
|
Provisions
|
|
|
|
|
(16,272,604)
|
|
|
20,374,796
|
|
|
Revaluation of
contingent consideration
|
|
|
|
|
1,962,921
|
|
|
(5,556,594)
|
|
Change in non-cash
operating working capital
|
|
|
|
|
(3,555,770)
|
|
|
(30,278,863)
|
|
|
|
|
|
7,010,377
|
|
|
(29,489,419)
|
|
Interest
paid
|
|
|
|
|
(412,465)
|
|
|
(70,602)
|
|
Interest
received
|
|
|
|
|
31,727
|
|
|
49,504
|
|
Income taxes
paid
|
|
|
|
|
(7,392,374)
|
|
|
(4,887,313)
|
|
|
|
|
|
(762,735)
|
|
|
(34,397,830)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from public
offering
|
|
|
|
|
-
|
|
|
63,833,834
|
|
Purchase of treasury
stock
|
|
|
|
|
(536,507)
|
|
|
-
|
|
Proceeds from
exercise of stock options
|
|
|
|
|
231,106
|
|
|
577,694
|
|
Interest paid on
loans and borrowings
|
|
|
|
|
(2,572,761)
|
|
|
(2,338,099)
|
|
Proceeds from loans
and borrowings
|
|
|
|
|
12,463,507
|
|
|
13,500,000
|
|
Repayment of loans
and borrowings
|
|
|
|
|
(1,575,000)
|
|
|
(750,000)
|
|
Transaction costs on
loans and borrowings
|
|
|
|
|
(1,280,254)
|
|
|
-
|
|
|
|
|
|
6,730,091
|
|
|
74,823,429
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
|
|
(2,774,266)
|
|
|
(3,271,622)
|
|
Purchase of
intangible assets
|
|
|
|
|
(941,171)
|
|
|
(1,133,252)
|
|
Increase (decrease)
in restricted cash
|
|
|
|
|
(5,090,147)
|
|
|
129,421
|
|
Payment of settlement
accrual and contingent consideration
|
|
|
|
|
(5,376,736)
|
|
|
(4,822,415)
|
|
Acquisition of
businesses, net of cash acquired
|
|
|
|
|
(40,312,896)
|
|
|
-
|
|
|
|
|
|
(54,495,216)
|
|
|
(9,097,868)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on
|
|
|
|
|
|
|
|
|
|
cash and cash
equivalents
|
|
|
|
|
(5,061,360)
|
|
|
(1,745,691)
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
|
|
|
(53,589,220)
|
|
|
29,582,040
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
|
|
108,636,797
|
|
|
79,054,757
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
|
|
$
|
55,047,577
|
|
$
|
108,636,797
|
REDKNEE SOLUTIONS
INC.
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
(4,432,334)
|
|
(34,728,493)
|
|
(10,006,575)
|
|
(39,897,525)
|
|
|
|
|
|
|
|
|
|
Add back /
(subtract):
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
426,185
|
|
1,035,088
|
|
3,694,373
|
|
5,454,417
|
|
Amortization of
intangible assets
|
|
2,221,280
|
|
1,827,292
|
|
7,189,337
|
|
7,046,386
|
|
Other expenses
(income)
|
|
–
|
|
1,849,164
|
|
–
|
|
(4,065,422)
|
|
Finance
income
|
|
(16,147)
|
|
(1,083)
|
|
(31,633)
|
|
(45,129)
|
|
Finance
costs
|
|
2,213,001
|
|
781,538
|
|
5,172,039
|
|
3,047,129
|
|
Income tax
expense
|
|
2,867,610
|
|
3,584,609
|
|
7,634,825
|
|
5,232,799
|
|
Share-based
compensation
|
|
403,240
|
|
(167,358)
|
|
3,539,364
|
|
1,678,600
|
|
Foreign exchange
loss
|
|
3,062,814
|
|
5,805,899
|
|
9,948,211
|
|
5,590,285
|
|
Restructuring
costs
|
|
(63,098)
|
|
22,524,612
|
|
1,095,454
|
|
22,524,612
|
|
Acquisition and
related costs
|
|
1,000,539
|
|
3,306,101
|
|
6,212,222
|
|
7,197,617
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
7,683,090
|
$
|
5,817,369
|
$
|
34,447,617
|
$
|
13,763,769
|
SOURCE Redknee Solutions Inc.