Annual Revenues up 80%, Q4 Revenues Up 80%, Expenses Down 26%
TORONTO, April 24, 2012 /PRNewswire/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the year and fourth quarter ended December 31, 2011. Revenue for the fourth quarter was $455,756, 80% higher than the revenue for the same period in 2010 and 11% higher than the previous quarter. Revenue for the fiscal year 2011 was $1,449,891, 80% higher than in fiscal 2010.
The increase in revenue is primarily a result of greater use of DMDS for music video delivery by the major and independent record labels in the US and Canada, as well as the use of DMDS for advertising delivery which began to ramp up in the third quarter of the year. Overall, there was strong growth in all divisions and in all territories with U.S. revenues up 257% and revenues from Canada growing by 18%. 2011 saw new revenues for music audio delivery in Australia and the DMDS Awards business growing by 74%.
Total operating expenses for the year ended December 31, 2011 was 26% lower than the previous year. Included in the current year's operating costs is a one-time charge of $600,000 for the settlement of the lawsuit with a competitor. The loss from operations for 2011 was $2,803,383, down from $4,946,943 in 2010. Excluding one-time charges and non-recurring expenses in 2011 and 2010, the operating loss declined by $620,859 while revenue for the same period increased by $643,399. Total operating expenses for the fourth quarter of 2011 were 67% lower than the same period in fiscal 2010. The loss from operations was down $2,104,555 and revenue was up 80% for the fourth quarter of 2011 compared to the same period in 2010. Excluding the one-time charges and non-recurring expenses in 2010, the fourth quarter loss from operations declined by 47%.
"The revenue growth is very encouraging, particularly in light of the modest contribution from Advertising which only began to grow in a meaningful way during the third quarter," said Gary Moss, President and CEO YANGAROO Inc. "Equally important is the 100% flow through of the increase in sales to normalized operating margins. This demonstrates the scalability of Yangaroo's infrastructure and cost structure. Our key relationships in the Music and Advertising industries, combined with an industry leading platform, positions Yangaroo for continued growth and profitability going forward."
Summary of operating results for the years and fourth quarters ended December 31:
|Net loss for the period||(4,613,295)||(5,090,497)||(298,312)||(2,626,667)|
|Loss per share (basic & diluted)||(0.04)||(0.06)||(0.002)||(0.02)|
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS replaces the physical distribution of audio and video content for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet. The DMDS Awards platform powers many of North America's major awards shows.
Named one of Canada's Top 100 Tech Companies by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. underOTCBB: YOOIF.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE YANGAROO Inc.