– Quarter Highlighted by Return to Strong Momentum in
New Orders and Record Backlog of More Than $180 Million –
TORONTO, Aug. 3, 2016 /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, 2016. (All
figures are in U.S. dollars unless otherwise stated.)
Fiscal Q3 2016 Financial Highlights
(Comparisons
made between Fiscal Q3FY2016 and Fiscal Q3FY2015 results, unless
otherwise noted)
- Revenue totalled $40.5 million
compared to $46.7 million;
- Gross profit was $18.3 million
(45% of total revenue) compared to $26.6
million (57% of total revenue);
- Adjusted EBITDA loss was $1.9
million compared to Adjusted EBITDA of $5.3 million (11% of total revenue);
- Recurring revenue was 63% of revenue, compared to 53%;
- Net loss was $12.3 million, or
$0.11 loss per share (including
$4.1 million in restructuring costs)
compared to a net loss of $5.5
million, or $0.05 loss per
share;
- Cash from operations $4.0 million
(Adjusted cash from operations was $7.6
million); and,
- Order backlog increased both year-over-year and sequentially to
a record $180.7 million.
Fiscal Q3 2016 Operational Highlights
- Continued to progress on its planned re-structuring, including
reaching an agreement with the Work Council at the Company's
Berlin, Germany site, that will
reduce annual overall expenses by up to $25
million by Fiscal 2017 in comparison to an annualized Q1
Fiscal 2016.
- Won new and renewed contracts with a value of over $60 million, including:
- Multi-million dollar contract to monetize Tbaytel's multi-play
services and support its digital transformation;
- Three-year contract valued at more than $20 million with a leading Tier 1 communication
service provider (CSP) in APAC to expand the Redknee Unified
solution to deliver flexible rating and charging services and
support the customer's transformation to a digital services
model;
- New $8 million contract to deploy
Redknee Unified at a Tier 1 CSP in the Americas to execute upon its
multi-brand strategy in multiple countries;
- Multi-million dollars contract to deliver Redknee PCS,
Redknee's policy management solution, to a large Tier 1 CSP in EMEA
servicing up to 55 million subscribers;
- Renewed multi-million services creation and services contract
with a large Tier 1 CSP in Europe;
- New multi-year services agreement with Lifecell, part of the
Turkcell Group;
- Renewed multi-year contract with TIM Brazil that will enhance
its competitive positioning;
- Completed an upgrade project and the launch of Redknee Unified
at HT Croatia, part of the Deutsche Telekom Group (DT), enabling
the creation of innovative services and real-time marketing
campaigns and positioning the Company for future growth;
- Established a new partnership with L&T Technology Services
to deliver an Internet of Things (IoT) architecture and services in
the transportation, energy and insurance sectors; and,
- Named as one of the top Canadian ICT companies in the Branham
Group's annual listing.
Management Commentary
"The third quarter was highlighted by strong momentum in new
orders resulting in over $60 million
of new bookings, further strengthening our order backlog at quarter
end, which surpassed the $180 million
mark for the first time," said Lucas Skoczkowski, President and
CEO, Redknee Solutions Inc. "Delays in customer decisions continue
to impact our revenues, but we expect that our backlog will
contribute to increased revenue visibility for the fiscal year
2017, as implementation of these new contracts will begin.
More importantly, these wins further underscore the competitive
strength of our solutions in supporting our customers, as they make
the critical transition from traditional to real time digital
business models. Our customer discussions remain very active
and we look forward to continuing to convert our robust sales
pipeline into significant contract wins."
Fiscal Q3 2016 Financial Results
Revenue was $40.5 million compared to $46.7
million in the same year-ago quarter. The decrease resulted
mainly from the impact of lower license revenue due to delays in
customer purchasing decisions, compared to the same year-ago
quarter.
Order backlog increased 11% to $180.7
million from $162.5 million in
the same year-ago quarter, and, sequentially, increased 3% from
$175.5 million from the second
quarter of 2016.
Recurring revenue was 63% of total revenue, compared to 53% in
the same year-ago quarter.
Gross margin was $18.3 million, or
45% of total revenue, compared to $26.6
million, or 57% of total revenue, in the same year-ago
quarter. The decrease resulted mainly from lower revenue
from high-margin software license deals.
Adjusted EBITDA loss was $1.9 million compared
to Adjusted EBITDA of $5.3
million, or 11% of revenue, in the same year-ago
quarter (see discussion about the presentation of Adjusted
EBITDA, a non-IFRS measure, below).
Net loss was $12.3 million, or $0.11 loss per
basic and diluted share, compared to a net loss of
$5.5 million, or $0.05
loss per basic and diluted share, in the same year-ago
quarter. Net loss included $4.1
million of restructuring costs. The Company expects
its restructuring program will reduce annual overall expenses by up
to $25 million by Fiscal 2017, with
partial savings occurring through the last quarter of Fiscal
2016.
At June 30, 2016, total cash ended
at $43.0 million. Cash flow from
operations was a $4.0 million.
Adjusted cash flow from operations was at $7.6 million (see discussion about the
presentation of Adjusted cash flow from operations, a non-IFRS
measure, below).
Please refer to the section regarding Forward-Looking Statements
below 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.
Financial Guidance
The Company is providing the following financial guidance for
Fiscal 2016 and Fiscal 2017:
- Fiscal 2016
- Revenue of between $170 million and $172
million; and,
- Adjusted EBITDA of between $1 million
and $3 million.
- Fiscal 2017
- Revenue of between $170 million and $180
million; and,
- Adjusted EBITDA of between $15 million
and $20 million.
Mr. Skoczkowski commented: "As we look out to the remainder of
this year and into next, while we continue to be confident in our
ability to win new contracts, we expect delays in customer
decisions will persist, tempering software license sales and
constraining near-term top-line growth. With strong visibility
afforded by the expansion of our order backlog throughout Fiscal
2016 and supported by last year's restructuring and our ongoing
disciplined cost management, in Fiscal 2017 we expect to generate
adjusted EBITDA in the range of $15 to $20
million dollars."
"As we move forward, we remain firmly focused on maximizing
customer retention as well as our near-term business priorities of
expanding gross margin, growing recurring revenue and generating
cash flow."
This financial guidance constitutes forward-looking information
within the meaning of applicable securities laws and is based on a
number of assumptions and subject to a number of risks. Actual
results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond Redknee's
control. Please refer to the section regarding Forward-Looking
Statements below. All numbers provided in this section are
approximate.
Conference Call
The Company will host a conference call tomorrow (August 4, 2016) 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 4, 2016
Time: 8:30 a.m. Eastern time (5:30
a.m. Pacific time)
Dial-In Number: 1 (888) 231-8192
International: 1 (647) 427-7451
Conference ID#: 52994380
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/2a5IkjP.
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) 586-1955.
A replay of the call will be available until 12:00 midnight
(EST) Thursday, August 11, 2016.
Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 52994380
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," which 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.
"Adjusted cash flow from operations", which is a non-IFRS
measure, is defined as cash flow from operations excluding amounts
for restructuring payments made in the period.
"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-IFRS
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, Adjusted cash flow from operations, recurring revenue, and
order backlog differently. The Company presents Adjusted EBITDA,
Adjusted cash flow from operations, 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 order backlog contributing to increased revenue
visibility for the Fiscal 2017; conversion of the Company's sales
pipeline into contract wins; expectations regarding the impact of
restructuring on reducing expenses; expected delays in customer
decisions; and financial guidance for Fiscal 2016 and 2017; 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. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors and assumptions that may
cause the actual results, performance or achievements to differ
materially. Such factors include, but are not limited to,
assumptions respecting : (i) the conversion of sales pipeline into
orders and orders into revenue based on the extent and timing of
historical conversion; (ii) the anticipated mix of the sale
of products and services of the Company and associated margin being
consistent with that realized in the past; (iii) the ability of
Redknee to bring new products and services to market and to
increase sales; (iv) the strength of the Company's product
development pipeline; (v) the estimated size and growth prospects
of the markets Redknee seeks to address; (vi) the Company's
competitive position in those markets and its ability to take
advantage of future opportunities in those markets; (vii) the
benefits of the Company's products and services to be realized by
its customers; (viii) the demand for the Company's products and
services and the extent of deployment of the Company's products and
services; (ix) the Company's financial condition and capital
requirements; * the stability of general economic and market
conditions; (xi) currency exchange rates and interest rates; and
(xii) capital markets continuing to provide the Company with access
to capital. The risks and uncertainties that may affect
forward-looking statements include, but are 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 Statements of
Financial
Position
|
(Expressed in U.S.
dollars)
|
(Unaudited)
|
|
|
|
|
June
30,
|
September
30,
|
|
2016
|
2015
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
37,612,153
|
$
|
55,047,577
|
|
Trade accounts and other
receivables
|
52,611,316
|
67,439,885
|
|
Unbilled
revenue
|
32,671,702
|
38,282,163
|
|
Prepaid
expenses
|
3,358,415
|
2,535,936
|
|
Income taxes
receivable
|
3,601,834
|
1,399,564
|
|
Other
assets
|
373,584
|
392,195
|
|
Inventories
|
724,582
|
812,987
|
|
Total current
assets
|
130,953,586
|
165,910,307
|
|
|
|
Restricted
cash
|
5,397,158
|
5,972,087
|
Property and
equipment
|
7,070,294
|
8,435,008
|
Deferred income
taxes
|
1,576,901
|
2,086,025
|
Investment tax
credits
|
361,077
|
351,385
|
Other
assets
|
1,648,806
|
1,816,640
|
Intangible
assets
|
38,334,990
|
46,362,262
|
Goodwill
|
32,271,078
|
32,271,078
|
|
|
|
Total
assets
|
$
|
217,613,890
|
$
|
263,204,792
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Trade
payables
|
$
|
12,543,898
|
$
|
9,128,710
|
|
Accrued
liabilities
|
23,765,806
|
32,305,136
|
|
Provisions
|
25,716,638
|
8,772,519
|
|
Income taxes
payable
|
1,589,618
|
2,364,983
|
|
Settlement
accrual
|
-
|
10,244,224
|
|
Deferred
revenue
|
19,259,627
|
13,363,696
|
|
Loans and
borrowings
|
7,700,000
|
1,800,000
|
|
Total current
liabilities
|
90,575,587
|
77,979,268
|
|
|
|
Deferred
revenue
|
401,270
|
870,937
|
Other
liabilities
|
2,242,464
|
2,615,163
|
Pension and other long-term employment benefit
plans
|
11,769,414
|
11,417,481
|
Loans and
borrowings
|
48,052,172
|
54,961,066
|
Provisions
|
5,890,363
|
4,006,354
|
Total
liabilities
|
158,931,270
|
151,850,269
|
|
|
|
Shareholders'
equity:
|
|
|
|
Share
capital
|
172,427,017
|
174,082,815
|
|
Treasury
stock
|
(141,917)
|
(141,917)
|
|
Contributed
surplus
|
9,145,023
|
7,899,360
|
|
Deficit
|
(119,270,788)
|
(67,086,722)
|
|
Accumulated other comprehensive
loss
|
(3,476,715)
|
(3,399,013)
|
|
Total shareholders'
equity
|
58,682,620
|
111,354,523
|
|
|
|
Total liabilities and shareholders'
equity
|
$
|
217,613,890
|
$
|
263,204,792
|
REDKNEE SOLUTIONS
INC.
|
Condensed Consolidated Interim Statements of
Comprehensive
Loss
|
(Expressed in U.S.
dollars)
|
(Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
June
30,
|
June
30,
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
Software, services and
other
|
$
|
17,165,876
|
$
|
24,939,646
|
$
|
59,389,563
|
$
|
94,115,569
|
|
Support and
subscription
|
23,354,180
|
21,720,499
|
71,038,796
|
68,864,412
|
|
40,520,056
|
46,660,145
|
130,428,359
|
162,979,981
|
|
|
|
|
|
Cost of
revenue
|
22,181,399
|
20,078,956
|
60,932,909
|
67,068,027
|
|
|
|
|
|
Gross
profit
|
18,338,657
|
26,581,189
|
69,495,450
|
95,911,954
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Sales and
marketing
|
6,685,766
|
8,025,752
|
22,903,762
|
25,188,455
|
|
General and
administrative
|
7,362,852
|
5,807,683
|
23,280,531
|
20,381,648
|
|
Research and
development
|
9,904,602
|
11,222,883
|
35,213,390
|
34,949,693
|
|
Restructuring
costs
|
4,115,721
|
570,203
|
28,936,176
|
1,158,552
|
|
Acquisition and related
costs
|
172,893
|
4,517,200
|
1,123,371
|
5,211,683
|
|
28,241,834
|
30,143,721
|
111,457,230
|
86,890,031
|
|
|
|
|
|
Income (loss) from
operations
|
(9,903,177)
|
(3,562,532)
|
(41,961,780)
|
9,021,923
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
(155,023)
|
962,015
|
(619,799)
|
(6,885,397)
|
Finance
income
|
41,050
|
3,812
|
64,154
|
15,486
|
Finance
costs
|
(1,889,017)
|
(944,577)
|
(4,696,951)
|
(2,959,038)
|
|
|
|
|
|
Loss before income
taxes
|
(11,906,167)
|
(3,541,282)
|
(47,214,376)
|
(807,026)
|
|
|
|
|
|
Income tax expense
(recovery):
|
|
|
|
|
|
Current
|
367,839
|
2,151,081
|
4,367,190
|
4,921,660
|
|
Deferred
|
(19,073)
|
(146,856)
|
602,500
|
(154,445)
|
|
|
348,766
|
2,004,225
|
4,969,690
|
4,767,215
|
|
|
|
|
|
Net
loss
|
(12,254,933)
|
(5,545,507)
|
(52,184,066)
|
(5,574,241)
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
Pension actuarial
adjustment
|
–
|
–
|
(77,702)
|
–
|
|
|
|
|
|
Comprehensive
loss
|
$
|
(12,254,933)
|
$
|
(5,545,507)
|
$
|
(52,261,768)
|
$
|
(5,574,241)
|
|
|
|
|
|
Net loss per common
share:
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
$
|
(0.05)
|
$
|
(0.48)
|
$
|
(0.05)
|
|
Diluted
|
(0.11)
|
(0.05)
|
(0.48)
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares:
|
|
|
|
|
|
Basic
|
108,238,408
|
109,179,897
|
108,556,804
|
109,072,383
|
|
Diluted
|
108,238,408
|
109,179,897
|
108,556,804
|
109,072,383
|
|
|
|
|
|
|
REDKNEE SOLUTIONS
INC.
|
Condensed Consolidated Interim Statements of Cash
Flows
|
(Expressed in U.S.
dollars)
|
(Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
June
30,
|
June
30,
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Cash provided by (used
in):
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
Net
loss
|
$
|
(12,254,933)
|
$
|
(5,545,507)
|
$
|
(52,184,066)
|
$
|
(5,574,241)
|
|
Adjustments
for:
|
|
|
|
|
|
|
Depreciation of property and
equipment
|
945,334
|
1,190,536
|
3,133,761
|
3,268,188
|
|
|
Amortization of intangible
assets
|
2,478,532
|
1,628,468
|
7,214,128
|
4,968,057
|
|
|
Finance
income
|
(41,050)
|
(3,812)
|
(64,154)
|
(15,486)
|
|
|
Finance
costs
|
1,889,017
|
944,577
|
4,696,951
|
2,959,038
|
|
|
Pensions
|
(1,102,968)
|
688,179
|
274,231
|
453,032
|
|
|
Income tax
expense
|
348,766
|
2,004,225
|
4,969,690
|
4,767,215
|
|
|
Unrealized foreign exchange loss
(gain)
|
1,068,227
|
(466,177)
|
2,144,918
|
5,294,876
|
|
|
Share-based
compensation
|
315,079
|
937,943
|
2,071,724
|
3,136,124
|
|
|
Settlement of acquisition related
liabilities
|
–
|
4,105,974
|
–
|
1,962,921
|
|
|
Change in
provisions
|
(288,484)
|
(4,978,333)
|
18,828,128
|
(13,561,578)
|
|
|
Change in non-cash operating working
capital
|
13,734,661
|
1,405,179
|
18,563,441
|
2,452,437
|
|
7,092,181
|
1,911,252
|
9,648,752
|
10,110,583
|
|
|
Interest
paid
|
(10,131)
|
(31,497)
|
(444,348)
|
(120,333)
|
|
|
Interest
received
|
36,236
|
6,701
|
59,687
|
18,375
|
|
|
Income taxes
paid
|
(3,114,105)
|
(2,681,294)
|
(7,319,716)
|
(5,590,925)
|
|
4,004,181
|
(794,838)
|
1,944,375
|
4,417,700
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from exercise of stock
options
|
2,340
|
151,881
|
240,400
|
231,106
|
|
|
Purchase of treasury
stock
|
–
|
–
|
–
|
(536,507)
|
|
|
Purchase of shares under
NCIB
|
–
|
–
|
(2,556,966)
|
–
|
|
|
Interest and fees paid on loans and
borrowings
|
(1,064,028)
|
(826,787)
|
(2,852,621)
|
(1,758,442)
|
|
|
Repayment of loans and
borrowings
|
(450,000)
|
(375,000)
|
(1,350,000)
|
(1,125,000)
|
|
|
Transaction costs on loans and
borrowings
|
–
|
–
|
(90,496)
|
–
|
|
(1,511,688)
|
(1,049,906)
|
(6,609,683)
|
(3,188,843)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchase of property and
equipment
|
(518,298)
|
(699,646)
|
(2,140,218)
|
(1,496,618)
|
|
|
Purchase of intangible
assets
|
(16,283)
|
(41,114)
|
(41,318)
|
(804,171)
|
|
|
Increase (decrease) in restricted
cash
|
(203,093)
|
(14,578,519)
|
574,929
|
(15,137,058)
|
|
|
Payment of settlement
accrual
|
(2,531,829)
|
(1,038,382)
|
(10,244,224)
|
(1,038,382)
|
|
(3,269,503)
|
(16,357,661)
|
(11,850,831)
|
(18,476,229)
|
|
|
|
|
|
Effect of foreign exchange rate changes
on
|
|
|
|
|
|
|
cash and cash
equivalents
|
(719,685)
|
859,130
|
(919,285)
|
(4,380,996)
|
|
|
|
|
|
Decrease in cash and cash
equivalents
|
(1,496,695)
|
(17,343,275)
|
(17,435,424)
|
(21,628,368)
|
|
|
|
|
|
Cash and cash equivalents, beginning of
period
|
39,108,848
|
104,351,704
|
55,047,577
|
108,636,797
|
|
|
|
|
|
Cash and cash equivalents, end of
period
|
$
|
37,612,153
|
$
|
87,008,429
|
$
|
37,612,153
|
$
|
87,008,429
|
REDKNEE SOLUTIONS
INC.
|
Reconciliation of Net Income (Loss) to Adjusted
EBITDA
|
(Expressed in U.S.
dollars)
|
(Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
June
30,
|
June
30,
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Net loss for the
period
|
(12,254,933)
|
(5,545,507)
|
(52,184,066)
|
(5,574,241)
|
|
|
|
|
|
Add back /
(subtract):
|
|
|
|
|
|
Depreciation of property and equipment
|
945,334
|
1,190,536
|
3,133,761
|
3,268,188
|
|
Amortization of intangible
assets
|
2,478,532
|
1,628,468
|
7,214,128
|
4,968,057
|
|
Finance
income
|
(41,050)
|
(3,812)
|
(64,154)
|
(15,486)
|
|
Finance
costs
|
1,889,017
|
944,577
|
4,696,951
|
2,959,038
|
|
Income tax
expense
|
348,766
|
2,004,225
|
4,969,690
|
4,767,215
|
|
Share-based
compensation
|
315,079
|
937,943
|
2,071,724
|
3,136,124
|
|
Foreign exchange loss
(gain)
|
155,023
|
(962,015)
|
619,799
|
6,885,397
|
|
Restructuring
costs
|
4,115,721
|
570,203
|
28,936,176
|
1,158,552
|
|
Acquisition and related
costs
|
172,893
|
4,517,200
|
1,123,371
|
5,211,683
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
(1,875,618)
|
$
|
5,281,818
|
$
|
517,380
|
$
|
26,764,527
|
SOURCE Redknee Solutions Inc.