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OneMove(TM) Announces Fiscal 2011 Fourth Quarter and Year End Financial Results(October 28, 2011)
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/28/11 -- OneMove Technologies Inc. ("OneMove" or the "Company") (TSX VENTURE:OM), the provider of the leading web-based real estate transaction platform and the creator of the largest and fastest growing online community of conveyancing professionals, announced today its financial results for the three and 12 month periods ended June 30, 2011. All figures are reported in Canadian dollars.
Fiscal 2011 Operational Highlights
-- MLS?? listed sales in BC decreased 19% from 91,000 to 74,000 from fiscal 2010 -- Revenue decreased 11% or $264,000 from $2,148,000 to $1,884,000 from fiscal 2010 -- Transactional volume decreased 11% or 8,000 from 70,000 to 62,000 -- Daily average revenue decreased 10% or $800 from $8,100 to $7,300 -- G & A increased 14% or $270,000 from $1,911,000 to $2,181,000 year over year -- Member firms increased 30% or 117 to 505 from 388 -- 97% retention rate of users/members for the past 5 years -- Alberta production release of econveyance in January 2011 -- Expanded Sales team for Alberta -- BC Land Title Act Amended requiring mandatory electronic filing January 2012 -- The Company achieved positive EBITDA in Q4
Fiscal 2010 Q4 and Year End Financial Summary
Q4 Q4 FY FY FY 2011 FY 2010 % Change 2011 2010 % Change Revenue $ 587,000 $ 632,000 -7% $ 1,884,000 $ 2,148,000 -11% EBITDA(i) $ 71,000 $ 275,000 -74% $ (294,000) $ 236,000 -225% Net Income (loss) $ (87,000) $ 51,000 -271% $ (803,000) $ (253,000) -280% Net Income (loss) p/s $ 0.00 $ 0.00 0% $ (0.00) $ 0.00 0%
Mr. Johnson commented: "We are witnessing another paradigm shift in the econveyance community as our members make the dynamic transition from preparing documents in an isolated manner to connecting and collaborating with members on the other side of their files. It's exciting to see members realize that the member on the other side of their transaction is entering the same data in the same locations in their econveyance file. They quickly understand that they can benefit immensely by connecting, communicating and collaborating all in the same file, eliminating the need for each to enter the same information. Members now see that the cornerstone feature of entering data once and using it everywhere also extends to the econveyance firm on the other side. Members acknowledge that if you are not connected using econveyance then you are just not connected. This unique capability continues to maintain our market dominance making every member part of the largest and fastest growing online community of conveyancing professionals of its kind.
This year saw continued growth in market share as a result of aggressive sales and marketing initiatives despite an overall decline in residential real estate transactions due to adverse market conditions. Our stated objective was to increase the number of firms using econveyance in order to insulate the Company from seasonal fluctuations as well as deteriorating market conditions. At the end of the fiscal year, we had 505 member firms which was a 30%, or 117 firms, increase from the same point last year.
In January, we released a new edition of econveyance into the Alberta market without incurring any extra capital expenditure demonstrating the scalability of the platform and the advantages of the technology upgrade invested in the previous year. Our agile development process continues to prove our competitive advantages over our competitors in the market place. Since our release in Alberta we have added 45 member firms in that province.
Moving forward, shareholders can expect that our scalable business model and trajectory will show continued growth throughout western Canada. There are several new features and enhancements scheduled for release in the coming year that will continue to differentiate us as the leading provider and solution innovator for the conveyancing community."
Fiscal 2011 Q4 and Year End Financial Review
Total revenue for fiscal 2011 decreased 11% to $1,884,000 from $2,148,000 for fiscal 2010. During fiscal 2011, OneMove processed approximately 62,000 transactions, compared to 70,000 transactions in the previous year. During the same period the number of real estate sales reported by the MLS?? in BC decreased by 19% from 91,000 to 74,000 unit sales. Average daily revenue decreased to approximately $7,300 from approximately $8,100 in fiscal 2010.
For the three months ended June 30, 2011, total revenue was $587,000, down 8% from revenue of $632,000 for the three months ended June 30, 2010. During Q4 fiscal 2011, OneMove processed approximately 19,100 transactions, compared to 20,800 transactions in Q4 fiscal 2010. Average daily revenue for Q4 fiscal 2011 decreased to $9,000 from $9,800 in Q4 fiscal 2010. During the same period year over year MLS?? reported sales decreased slightly from 24,000 to 23,000 unit sales.
For fiscal 2011, total expenses increased 12% to $2,688,000, compared to $2,402,000, for fiscal 2010. A reduction of capitalized development costs and the hiring of two new sales representatives account for most of the increase from the previous year. Management continues to focus on maintaining tight cost controls and believes that annual expenses have stabilized at current levels and does not anticipate significant changes in the coming year.
For the three months ended June 30, 2011 total expenses increased 10% or $51,000 from $581,000 to $632,000. The primary difference was due to the fact that wages and salaries were not capitalized as compared to Q4 of fiscal 2010 because the Alberta edition of econveyance progressed from development to commercial release.
EBITDA was $(294,000), for fiscal 2011, compared to $236,000 in fiscal 2010. EBITDA for the three months ended June 30, 2011, was $80,000, compared to $275,000 for the three months ended June 30, 2010. This is the 4th time the Company has achieved positive EBITDA for a quarter.
For fiscal 2011, net loss from operations was $(803,000), or $0.00 per share, compared to $(253,000), or $(0.00) per share, in fiscal 2010. Net loss for the three months ended June 30, 2011, was $(87,000) or $0.00 per share, compared to a net income of $51,000, or $0.00 per share, for the three months ended June 30, 2010.
Cash flows provided by (used in) from continuing operations were $240,000 as at June 30, 2011, compared to $16,000 as at June 30, 2010. As at June 30, 2011, OneMove had cash of $176,000, compared to $148,000 as at June 30, 2010. The Company had working capital of $(237,000) as at June 30, 2011, compared to $(237,000) at June 30, 2010. The current year working capital deficit is primarily due the fact that revenues were down 11% compared to the previous year with expenses increasing 14% over the previous year.
As at June 30, 2011, total shares issued and outstanding were 84,115,110.
(i)EBITDA is used internally by the Company to compare cash operating resulted from one period to another. EBITDA for the purposes of this analysis also excludes stock based compensation, shares issued for services and "Other income/losses" per the financial statements. EBITDA does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
About OneMove Technologies Inc.
OneMove Technologies Inc. (TSX VENTURE:OM) is the leading provider of web-based real estate transaction platforms and the creator of the largest and fastest growing online community of conveyancing professionals. Through econveyance(TM), its proprietary web-based conveyancing software solution, OneMove(TM) simplifies and expedites the process of buying and selling real estate. Econveyance connects all participants in the property transfer process, offering a secure and efficient means of completing the transaction online. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.com. Professional users site www.econveyance.com.
Forward Looking Statements
This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and OneMove Technologies Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
Neither 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.
OneMove Technologies Inc.
Martin R. Johnson, CA
President & CEO
604.662.8207 ext 116
OneMove Technologies Inc.
Corporate and Investor Communications
604.662.8207 ext 114
Stone Communication Services Limited
800.336.9528 ext 4429
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