TORONTO, Aug. 5, 2015 /CNW/ - Redknee Solutions
Inc. (TSX: RKN) a leading provider of
real-time monetization and subscriber management software, reported
results for its fiscal third quarter ended June 30, 2015. All
figures are in U.S. dollars.
Fiscal Q3 2015 Financial Highlights
(Comparisons
made between fiscal Q3FY2015 and fiscal Q3FY2014 results, unless
otherwise noted)
- Revenue totalled $46.7 million
($51.7 million, on a constant
currency basis), compared to $63.9
million
- Gross profit was $26.6 million
(57% of total revenue) compared to $27.9
million (44% of total revenue)
- Adjusted EBITDA of $5.3 million
(11% of total revenue) versus Adjusted EBITDA loss of $3.2 million
- Recurring revenue was 53% of total revenue, compared to
51%
- Net loss totalled $5.5 million or
$0.05 per share versus a net loss of
$6.9 million or $0.06 loss per share
- Total cash at June 30, 2015 was
$103.0 million
- Cash flow from operations was $5.3
million
- Order backlog of $162.5 million
at June 30, 2015 ($174.0 million, on a constant currency
basis)
Fiscal Q3 2015 Operational Highlights
- Announced the acquisition of Orga Systems ("Orga") for a total
consideration of €38M. The acquisition will enhance Redknee's
best-of-suite customer focused solutions and accelerate expansion
into new vertical markets. The acquisition closed on July 31, 2015.
- Finalized the agreement with Nokia Networks for all outstanding
issues related to the BSS acquisition, including the final
contingent earn out amount
- Added three new customers in the Americas and EMEA
- Won a $14 million deal to support
a leading CSP in the Americas to accelerate its MVNE growth
strategy
- Announced a new cloud-based converged billing win supporting
EcoMobile on the Sprint network with a fully managed end to end
solution
- Awarded the Frost & Sullivan APAC BSS Vendor of the Year
award
- Named as one of Canada's top
technology companies by Branham Group's Top ICT Scorecard
- 149 patents granted and 37 patents filed
- After the end of the quarter, on August
4, 2015, Redknee entered into an amended and restated credit
agreement with a syndicate of lenders led by Wells Fargo for a
total credit facility of $100
million
Management Commentary
"In the third quarter we executed on our strategic plan, growing
order bookings while revenue was impacted by software license
lumpiness which is common to the telecom software market," said
Lucas Skoczkowski, CEO of Redknee. "We have begun to see the
benefits of the cost structure realignment program that we
implemented last year, and remain focused on enhancing our
profitability, cash flow generation and growing our recurring
revenues. The acquisition of Orga Systems lays a solid foundation
for future growth, increasing our global reach, accelerating our
revenue diversification beyond the telecom market, adding strength
and depth to our team and expanding our product suite."
Mr. Skoczkowski added: "Our combined software products have
increasingly been leveraged to support the rise of M2M and the
Internet of Things (IoT) across our traditional customer base and
non-telecom verticals including utilities, smart homes, and smart
energy. We expect that this acquisition will be accretive in fiscal
2016, and will provide a further update when we release the
Business Acquisition Report. "
Fiscal Q3 2015 Financial Results
Revenue was $46.7 million ($51.7
million on a constant currency basis) compared
to $63.9 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.
Order backlog declined 6% to $162.5
million ($174.0 million on a
constant currency basis) compared to $172.7
million in the same year-ago quarter, however sequentially
order backlog increased 3% from $157.2
million reported last quarter.
Recurring revenue was 53% of total revenue, compared to 51% in
the same year-ago quarter.
Gross margin was 57% compared to 44% in the same year-ago
quarter. The increase in gross margin was primarily attributable to
a reduction in compensation and third party costs and the impact of
foreign exchange.
Adjusted EBITDA was $5.3 million, or 11% of
revenue, compared to Adjusted EBITDA loss of $3.2 million, in the same year-ago
quarter (see discussion about the presentation of Adjusted
EBITDA, a non-IFRS measure, below).
Net loss totalled $5.5 million, or $0.05 loss per
basic and diluted share compared to a net loss of $6.9 million, or $0.06 income per
basic and diluted share, in the same year-ago quarter.
At June 30, 2015, total cash ended
at $103.0 million. Cash flow from
operations totalled $5.3 million,
excluding restructuring payments of $6.1
million incurred in the quarter. The restricted cash
on the balance sheet mainly relates to a purchase guarantee for the
Orga acquisition.
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 (August 6, 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 August 6, 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#: 81749536
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/1JZx7dI.
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, August 13, 2015.
Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 81749536
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 Q2 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.
|
|
|
|
|
Condensed
Consolidated Interim Statement of Financial Position
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
June 30,
2015
|
|
September 30,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
87,008,429
|
$
|
108,636,797
|
|
Trade accounts and
other receivables
|
|
61,582,005
|
|
71,393,983
|
|
Unbilled
revenue
|
|
35,265,770
|
|
42,396,988
|
|
Prepaid
expenses
|
|
2,752,205
|
|
4,339,650
|
|
Other
assets
|
|
765,320
|
|
898,871
|
|
Inventories
|
|
2,175,299
|
|
5,199,362
|
|
Total current
assets
|
|
189,549,028
|
|
232,865,651
|
|
|
|
|
|
Restricted
cash
|
|
16,018,998
|
|
881,940
|
Property and
equipment
|
|
6,573,912
|
|
8,708,115
|
Deferred income
taxes
|
|
1,736,582
|
|
1,939,416
|
Investment tax
credits
|
|
373,850
|
|
416,222
|
Other
assets
|
|
1,665,478
|
|
2,089,688
|
Intangible
assets
|
|
28,104,180
|
|
32,819,313
|
Goodwill
|
|
7,638,590
|
|
7,638,590
|
|
|
|
|
|
Total
assets
|
$
|
251,660,618
|
$
|
287,358,935
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade
payables
|
$
|
8,082,607
|
$
|
9,538,161
|
|
Accrued
liabilities
|
|
26,167,779
|
|
38,566,558
|
|
Provisions
|
|
6,429,991
|
|
14,967,576
|
|
Income taxes
payable
|
|
733,537
|
|
1,595,569
|
|
Acquisition related
liabilities
|
|
14,582,578
|
|
14,454,527
|
|
Deferred
revenue
|
|
17,202,927
|
|
20,743,769
|
|
Loans and
borrowings
|
|
4,125,000
|
|
750,000
|
|
Total current
liabilities
|
|
77,324,419
|
|
100,616,160
|
|
|
|
|
|
Deferred
revenue
|
|
2,940,486
|
|
3,601,859
|
Other
liabilities
|
|
3,129,913
|
|
2,281,341
|
Pension and
non-pension post-employment benefit obligation
|
|
10,711,932
|
|
10,258,900
|
Loans and
borrowings
|
|
41,817,836
|
|
45,809,713
|
Provisions
|
|
1,584,277
|
|
6,608,270
|
Deferred income
taxes
|
|
–
|
|
36,016
|
|
|
|
|
|
Total
liabilities
|
|
137,508,863
|
|
169,212,259
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Share
capital
|
|
174,082,815
|
|
173,757,863
|
|
Treasury
stock
|
|
(141,917)
|
|
(21,226)
|
|
Contributed
surplus
|
|
7,040,194
|
|
5,665,135
|
|
Deficit
|
|
(62,654,388)
|
|
(57,080,147)
|
|
Accumulated other
comprehensive loss
|
|
(4,174,949)
|
|
(4,174,949)
|
|
Total shareholders'
equity
|
|
114,151,755
|
|
118,146,676
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
251,660,618
|
$
|
287,358,935
|
Redknee Solutions
Inc.
|
Condensed
Consolidated Interim Statements of Comprehensive Income
(Loss)
|
(Expressed in U.S.
dollars)
|
(Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Software, services
and other
|
$
|
24,939,646
|
$
|
31,169,747
|
$
|
94,115,569
|
$
|
105,241,205
|
|
Support and
subscription
|
|
21,720,499
|
|
32,753,587
|
|
68,864,412
|
|
91,518,689
|
|
|
46,660,145
|
|
63,923,334
|
|
162,979,981
|
|
196,759,894
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
20,078,956
|
|
36,012,726
|
|
67,068,027
|
|
101,113,001
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
26,581,189
|
|
27,910,608
|
|
95,911,954
|
|
95,646,893
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
8,025,752
|
|
9,129,659
|
|
25,188,455
|
|
26,725,403
|
|
General and
administrative
|
|
5,807,683
|
|
9,008,501
|
|
20,381,648
|
|
24,850,905
|
|
Research and
development
|
|
11,222,883
|
|
16,770,558
|
|
34,949,693
|
|
47,608,566
|
|
Restructuring
costs
|
|
570,203
|
|
–
|
|
1,158,552
|
|
–
|
|
Acquisition and
related costs
|
|
4,517,200
|
|
623,458
|
|
5,211,683
|
|
3,891,516
|
|
|
30,143,721
|
|
35,532,176
|
|
86,890,031
|
|
103,076,390
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(3,562,532)
|
|
(7,621,568)
|
|
9,021,923
|
|
(7,429,497)
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
|
962,015
|
|
770,947
|
|
(6,885,397)
|
|
215,614
|
Other
income
|
|
–
|
|
113,351
|
|
–
|
|
5,914,586
|
Finance
income
|
|
3,812
|
|
19,860
|
|
15,486
|
|
44,046
|
Finance
costs
|
|
(944,577)
|
|
(869,435)
|
|
(2,959,038)
|
|
(2,265,591)
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(3,541,282)
|
|
(7,586,845)
|
|
(807,026)
|
|
(3,520,842)
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
Current
|
|
2,151,081
|
|
(690,743)
|
|
4,921,660
|
|
1,749,079
|
|
Deferred
|
|
(146,856)
|
|
(18,118)
|
|
(154,445)
|
|
(100,889)
|
|
|
2,004,225
|
|
(708,861)
|
|
4,767,215
|
|
1,648,190
|
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
$
|
(5,545,507)
|
$
|
(6,877,984)
|
$
|
(5,574,241)
|
$
|
(5,169,032)
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.05)
|
$
|
(0.06)
|
$
|
(0.05)
|
$
|
(0.05)
|
|
Diluted
|
|
(0.05)
|
|
(0.06)
|
|
(0.05)
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
109,179,897
|
|
108,891,887
|
|
109,072,383
|
|
100,988,698
|
|
Diluted
|
|
109,179,897
|
|
108,891,887
|
|
109,072,383
|
|
100,988,698
|
|
|
|
|
|
|
|
|
|
|
Redknee Solutions
Inc.
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(5,545,507)
|
$
|
(6,877,984)
|
$
|
(5,574,241)
|
$
|
(5,169,032)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
1,190,536
|
|
1,365,161
|
|
3,268,188
|
|
4,419,329
|
|
|
Amortization of
intangible assets
|
|
1,628,468
|
|
1,792,754
|
|
4,968,057
|
|
5,219,094
|
|
|
Finance
income
|
|
(3,812)
|
|
(19,860)
|
|
(15,486)
|
|
(44,046)
|
|
|
Finance
costs
|
|
944,577
|
|
869,435
|
|
2,959,038
|
|
2,265,591
|
|
|
Pensions
|
|
688,179
|
|
414,892
|
|
453,032
|
|
1,249,459
|
|
|
Income tax expense
(recovery)
|
|
2,004,225
|
|
(708,861)
|
|
4,767,215
|
|
1,648,190
|
|
|
Unrealized foreign
exchange loss (gain)
|
|
(466,177)
|
|
(1,789,445)
|
|
5,294,876
|
|
(1,585,611)
|
|
|
Share-based
compensation
|
|
937,943
|
|
629,152
|
|
3,136,124
|
|
1,845,958
|
|
|
Settlement of
acquisition related liabilities
|
|
4,105,974
|
|
(113,351)
|
|
1,962,921
|
|
(5,914,586)
|
|
|
Change in
provisions
|
|
(4,978,333)
|
|
–
|
|
(13,561,578)
|
|
(1,201,050)
|
|
|
Change in non-cash
operating working capital
|
|
1,405,179
|
|
(11,212,920)
|
|
2,452,437
|
|
(54,603,770)
|
|
|
1,911,252
|
|
(15,651,027)
|
|
10,110,583
|
|
(51,870,474)
|
|
|
Interest
paid
|
|
(31,497)
|
|
(128,570)
|
|
(120,333)
|
|
(765,042)
|
|
|
Interest
received
|
|
6,701
|
|
19,681
|
|
18,375
|
|
42,548
|
|
|
Income taxes
paid
|
|
(2,681,294)
|
|
(1,124,093)
|
|
(5,590,925)
|
|
(3,270,231)
|
|
|
(794,838)
|
|
(16,884,009)
|
|
4,417,700
|
|
(55,863,199)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
Issuance of share
capital
|
|
–
|
|
–
|
|
–
|
|
63,833,834
|
|
|
Proceeds from
exercise of stock options
|
|
151,881
|
|
23,207
|
|
231,106
|
|
571,384
|
|
|
Purchase of treasury
stock
|
|
–
|
|
–
|
|
(536,507)
|
|
–
|
|
|
Interest paid on
loans and borrowings
|
|
(826,787)
|
|
(636,472)
|
|
(1,758,442)
|
|
(636,472)
|
|
|
Proceeds from loans
and borrowings
|
|
–
|
|
–
|
|
–
|
|
13,500,000
|
|
|
Repayment of loans
and borrowings
|
|
(375,000)
|
|
–
|
|
(1,125,000)
|
|
–
|
|
|
(1,049,906)
|
|
(613,265)
|
|
(3,188,843)
|
|
77,268,746
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(699,646)
|
|
(1,055,655)
|
|
(1,496,618)
|
|
(2,946,214)
|
|
|
Purchase of
intangible assets
|
|
(41,114)
|
|
(213,342)
|
|
(804,171)
|
|
(1,105,478)
|
|
|
Increase in
restricted cash
|
|
(14,578,519)
|
|
(867)
|
|
(15,137,058)
|
|
(167,996)
|
|
|
Payment of
acquisition related liabilities
|
|
(1,038,382)
|
|
–
|
|
(1,038,382)
|
|
–
|
|
|
(16,357,661)
|
|
(1,269,864)
|
|
(18,476,229)
|
|
(4,219,688)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on
|
|
|
|
|
|
|
|
|
|
cash and cash
equivalents
|
|
859,130
|
|
1,789,445
|
|
(4,380,996)
|
|
1,585,611
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(17,343,275)
|
|
(16,977,693)
|
|
(21,628,368)
|
|
18,771,470
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
104,351,704
|
|
114,803,920
|
|
108,636,797
|
|
79,054,757
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
87,008,429
|
$
|
97,826,227
|
$
|
87,008,429
|
$
|
97,826,227
|
Redknee Solutions
Inc.
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
(Expressed in U.S.
dollars)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
(5,545,507)
|
|
(6,877,984)
|
|
(5,574,241)
|
|
(5,169,032)
|
|
|
|
|
|
|
|
|
|
Add back /
(subtract):
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
1,190,536
|
|
1,365,161
|
|
3,268,188
|
|
4,419,329
|
|
Amortization of
intangible assets
|
|
1,628,468
|
|
1,792,754
|
|
4,968,057
|
|
5,219,094
|
|
Other
income
|
|
–
|
|
(113,351)
|
|
–
|
|
(5,914,586)
|
|
Finance
income
|
|
(3,812)
|
|
(19,860)
|
|
(15,486)
|
|
(44,046)
|
|
Finance
costs
|
|
944,577
|
|
869,435
|
|
2,959,038
|
|
2,265,591
|
|
Income tax
expense
|
|
2,004,225
|
|
(708,861)
|
|
4,767,215
|
|
1,648,190
|
|
Share-based
compensation
|
|
937,943
|
|
629,152
|
|
3,136,124
|
|
1,845,958
|
|
Foreign exchange loss
(gain)
|
|
(962,015)
|
|
(770,947)
|
|
6,885,397
|
|
(215,614)
|
|
Restructuring
costs
|
|
570,203
|
|
–
|
|
1,158,552
|
|
–
|
|
Acquisition and
related costs
|
|
4,517,200
|
|
623,458
|
|
5,211,683
|
|
3,891,516
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
5,281,818
|
$
|
(3,211,043)
|
$
|
26,764,527
|
$
|
7,946,400
|
SOURCE Redknee Solutions Inc.