TEL AVIV, Israel, March 11, 2016 /PRNewswire/ --
- Revenues for the first two months of 2016, to be at estimated to be at least $5.5 million with EBITDA of $1.8 million;
- Early 2016, Somoto acquired TerserTude: reinforces its operations in mobile & video advertising, representing significant growth engines;
Somoto (TASE: SMTO) which offers software and applications distribution solutions, for Apple Mac, Android, iPhone (iOS) and PC-Windows environments, today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2015.
Financial Highlights of the Fourth Quarter of 2015
- Fourth quarters revenues of $6.7 million, an increase of 8% over the prior quarter;
- Operating income of $1 million; an increase of 26% over the prior quarter;
- EBITDA of $ 2.1 million; an increase of 10.8% compared to the prior quarter;
- Net income of $600 thousand, an increase of 1400% over the prior quarter;
- Generated $2.3 million in operating cash flow;
Financial Highlights of 2015
- Full year revenue was $29.6 million; a year-over-year decrease of 7%;
- Operating Income was $4.9 million; a year-over-year increase of 38%;
- EBITDA of $9.4 million; a year-over-year increase of 85%;
- Net income of $3.5 million, a year-over-year increase of approximately 408%;
- Generated $7.4 million in operating cash flow;
- As of the end of the year, cash balance totaled $11.7 million; as of the end of February 2016, cash balance totaled $11.9 million, after payment for the TerserTude acquisition;
- Somoto declared a dividend of $0.5 million and intends to distribute an additional dividend of $0.5 million later this year; representing a dividend yield of 4.5% (based on current market value);
Mr. Ben Garrun, CEO of Somoto, commented, "We are proud of the results of the Company in 2015, reflecting the strength of our business model, our operational flexibility. In particular, we are pleased with our success in returning to growth in revenue, operating income and cash generation capability in such a way that in the months of January and February 2016, the Company estimates its revenue at a level of at least $5.5 million and EBITDA of at least $1.8 million. Although the first half of 2015 was challenging, we acted quickly and decisively taking advantage of our strengths to establish our growth path. The trend we are seeing in the results of the fourth quarter of 2015 and is continuing now into 2016."
Mr. Garrun added, "The Company's cash balance at the end of 2015 stood at more than $11.7 million and during the year, we generated operating cash flow of $7.4 million. This, together with the results of the beginning of 2016, point to the strength, profitability and cash generation capabilities of our Company as well as to our readiness to make additional acquisitions, as part of our growth strategy. In light of our excess financial liquidity and our commitment to the shareholders of Somoto, we announced a dividend distribution of $0.5 million and we intend to distribute additional dividends totaling $0.5 million later in the year. This means that based on the current market value, the amount of dividend distributed, represents a dividend yield of approximately 4.5%."
Mr. Garrun continued, "In early 2016, we announced the acquisition of TerserTude, which marks our expansion into activities in the field of mobile and video that are significant growth engines for us. The Company's mobile revenue in 2015 jumped to $3.9 million compared to $0.8 million in 2014. We believe that this growth strategy, which is based also on additional M&A, will create value for our shareholders."
Revenues for the full year 2015 were $29.6 million, a decrease of 7% compared to revenues of $31.8 million in 2014. Revenues for the fourth quarter of 2015 were $ 6.7 million, an increase of 8% compared to the third quarter of 2015 and a decrease of 52% compared to the fourth quarter of 2014.
Operating profit for the full year of 2015 amounted to $4.9 million or operating margins of 16.5%. This represents an increase of 38.4% compared to operating income of $3.5 million in 2014. Operating profit for the fourth quarter amounted to approximately $1.0 million or operating margins of 14.7%, compared with operating profit of $3.4 million in the fourth quarter of 2014.
EBITDA in 2015 amounted to $9.4 million, or 31.6% of revenue, an increase of 84% compared to EBITDA of $5.1 million in 2014. EBITDA for the fourth quarter of 2015 was $2.1 million, or 31.3% of the revenue, a decrease compared to EBITDA of $4.5 million in the fourth quarter of 2014.
Net income for 2015 totaled $3.5 million (a net margin of 11.8%) an increase of 400% compared to the net income of $ 0.7 million in 2014. Net income for the fourth quarter of 2015 was $600 thousand (a net margin of 8.4%), a decrease when compared to net income of $1.3 million in the fourth quarter of 2014.
Cash flow from operations for the full year 2015 amounted to $7.4 million and $2.3 million in the fourth quarter.
As of December 31, 2015, the Company had cash, including marketable securities, of $11.7 million including restricted cash of $1.3 million.
The company declared a dividend of $0.5 million. The dividend record date is March 27, 2016 and the payment date is April 5, 2016. The company plans an additional dividend distribution of $0.5 million during the year.
Shareholder's equity as of December 31, 2015 was $26 million.
About Somoto Ltd.
Somoto, a Tel Aviv based Software Internet Company founded in 2009, engaging in marketing, distribution, development, automatic intelligent installation applications and various monetization.
The company develops, through its subsidiary, Genieo Innovation Ltd., patented personalization technologies that allow effective Internet advertising through maximum exposure to the user and precise adjustment of products and services by the user's preferences. The company's flagship product, Smart Homepage has won Innovation Awards, and is a news page with custom content based on user preferences employing unique artificial intelligence technology, and is patent protected in the United States. The company generates revenues through users' search queries, as well as through the homepage and smart advertising on this page.
The Group has 50 employees, including 22 employees engaged in development.
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The Company's estimates which appear above, and in particular, the Company's assessments in connection with its prospects and results of operations, its expected investments, its financial position, business strategy, goals and management plans (including development plans and objectives relating to the company's products and services) and the realization of prospects and its business plans, are considered forward looking statements as defined under the law, based on a number of assumptions and estimations regarding the Company's operational performance, business strategy, its current and future environment and the Company's business, which the Company expects to operate in the future as well as information received from the Company's business partners.
All forward-looking statements are intended to reflect the Company's expectations concerning future events, as of the date of this notice. These estimates may not be realized in whole or in part, or may materialize in a substantially different manner than anticipated by the Company. The company will not be responsible for any future changes that might occur and shall have no liability to update any changes of circumstances, future events or conditions with respect to forward-looking information about the Company's estimates are based above and below. Also, it is hereby clarified that the Company's performance in the past cannot be the basis of the Company's performance in the future.
Assi Itshayek, Chief Financial Officer
GK Investor Relations
Ehud Helft/Gavriel Frohwein
Tel: (US) +1-646-688-3559
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