SITO Mobile Ltd
. (NASDAQ: SITO), an
insights-driven Consumer Behavior and Location Sciences™ company,
announced today its financial results for the three months and
full-year ended December 31, 2018.
Fourth Quarter Financial Overview
- Revenue for the three months ended December 31, 2018 was $11.1
million
- Net loss in the fourth quarter of 2018 was $1.1 million,
compared to $6.8 million in the corresponding period of 2017. The
year-over-year improvement reflects, among other things, a $2.2
million reduction in executive compensation, and $1.0 million in
employee salary and commissions that were eliminated as part of a
targeted restructuring initiative
- Adjusted EBITDA* for the fourth quarter of 2018 was $145,000
compared to a loss of $2.0 million in the corresponding period of
2017
- Detailed financial results for the fourth quarter and the full
year ended December 31, 2018 are described in the financial summary
sections below
Full-Year 2018 and Recent Operational
Achievements
- Strengthened the Board of Directors- SITO
Mobile Announces the Appointment of Steven Felsher, Jonathan Bond
and Bonin Bough to the Board- SITO Mobile Announces the
Appointment of Brett O’Brien to the Board of Directors- SITO
Mobile Appoints Jonathan Bond Chairman of the Board
- Raised cash from equity and retired debt to improve the
balance sheet- SITO Prices Public Offering of Common
Stock- Equity Offering Prospectus- SITO Mobile Announces
Termination of IP Revenue Sharing Agreement and Settlement of
Related Litigation
- Invested in improving our product- SITO
Mobile Strengthens Leadership Team with New Head of Product
Development
- Revamped the sales strategy to properly focus on and
incentivize- Retention and upselling of existing customer
relationships- Selling to new customers- Expansion into new
areas
- Strengthened Financial Leadership with Appointment of
New CFO- Silicon Valley Vet Terry Lynn Joins SITO
Mobile as Chief Financial Officer
- Secured a $9.5 million financing facility to address
short-term working capital needs and set relationship for scaling
the business- Entry into a Material Definitive
Agreement Filing
“The strategic actions we took in 2018 and the
early part of 2019 to restructure and strengthen our organization
were necessary to better position SITO to scale our operations
augment our revenue model with transformative, multi-year, consumer
insights and data-driven transactions and capitalize on the
significant market opportunity in front of us,” commented Tom
Pallack, SITO’s Chief Executive Officer. “Over the past
several months, we have revamped and enhanced every aspect of the
organization, strengthened our product offering and the ability to
leverage our proprietary and unique location-based, data-driven
capabilities, while streamlining our corporate structure, lowering
our overall head count, bolstering our balance sheet and reducing
G&A expenses.”
"Our business and revenue mix continue to shift
towards enterprise customers that are utilizing SITO consumer
insights for data-driven transactions," Pallack added. "During the
fourth quarter of 2018, sales to enterprise customers and recurring
engagements leveraging our proprietary data represented 35% of our
total sales. We believe we now have the right management team
in place and the necessary access to funds through our new
factoring agreement to effectively drive our brand direct and
channel partner strategy.”
Fourth Quarter Financial
Summary
Total revenue for the three months ended
December 31, 2018 decreased by $3.6 million, or 24%, to $11.1
million, compared to $14.7 million in the corresponding period of
2017. The decrease in total revenue was primarily due to a
reduction in the average spending per customer, which we are
actively working to offset with an increase of enterprise
data-driven engagements with larger brands and agencies.
Gross profit for the three months ended December
31, 2018 was $5.6 million, or 50% of total revenue, compared to
$6.8 million, or 46% of total revenue, for the corresponding period
of 2017. The increase in gross profit as a percentage of
total revenue was due primarily to higher gross margins in new
client engagements.
Loss from operations for the three months ended
December 31, 2018 was $1.3 million, compared to a loss from
operations of $6.9 million in the corresponding period of 2017. The
decrease in loss from operations was primarily due to an overall
decrease in office and employee compensation expense as part of
management’s strategic restructuring efforts.
Net loss for the three months ended December 31,
2018 was $1.1 million, or ($0.04) per basic and diluted share,
compared to a net loss of $6.7 million, or ($0.31) per basic and
diluted share, for the corresponding period of 2017.
Adjusted EBITDA* for the three months ended
December 31, 2018 was $145,000, compared to a loss of $2.0 million
in the corresponding period of 2017.
* To supplement our financial results presented
in accordance with generally accepted accounting principles in the
United States (“GAAP”), SITO Mobile has presented Adjusted EBITDA,
a non-GAAP financial measure, because many of our investors use
these non-GAAP financial measures to monitor the Company's
performance. Generally, a non-GAAP financial measure is a
quantitative assessment of a company's performance, financial
position or cash flow that either excludes or includes amounts that
are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with
GAAP. Non-GAAP financial measures should not be considered as a
substitute for, or superior to, the measures of financial
performance prepared in accordance with GAAP.
Full-Year Financial Summary
Total revenue for the year ended December 31,
2018 declined by $3.2 million, or 7%, to $39.7 million, compared to
total revenue of $42.9 million for the year ended December 31,
2017. The decrease in total revenue was primarily due to a
reduction in the average spending per customer, which we are
actively working to offset with an increase of enterprise
data-driven engagements with larger brands and agencies.
Gross profit for the year ended December 31,
2018 was $18.4 million, or 46% of total revenue, compared to $20.7
million, or 48% of total revenue, for the year ended December 31,
2017. The reduction in gross profit was primarily driven by
lower revenues.
Loss from operations for the year ended December 31, 2018 was $18.5
million, compared to a loss from operations of $14.4 million for
the year ended December 31, 2017, which reflects, among other
things, a decrease in revenue of $3.2 million and an increase in
sales and marketing expense of $4.7 million.
Net loss for the year ended December 31, 2018
was $17.0 million, or ($0.68) per basic and diluted share, compared
to a net loss of $15.0 million, or $(0.69) per basic and diluted
share, for the year ended December 31, 2017.
Adjusted EBITDA* for year ended December 31, 2018 was a loss
of $10.1 million, compared to an Adjusted EBITDA loss of $2.6
million for the year ended December 31, 2017.
Balance Sheet Summary
The Company ended the year with $2.6 million in
cash and cash equivalents, compared to cash and cash equivalents
$3.6 million at December 31, 2017. Subsequent to December 31,
2018 the company entered into a new factoring and security
agreement with Fast Pay Partners LLC that provides up to $9.5
million in accounts receivable financing, with an option to expand
the facility by an additional $5.5 million dollars later this
year.
Conference Call Information
Date: Friday, March 29, 2019Time: 9:00 a.m.
Eastern Time (ET)Dial in Number for U.S. & Canadian Callers:
877-407-8293Dial in Number for International Callers (Outside U.S.
& Canada): 201-689-8349
The conference call will also be webcasted live
on the Investor Relations section of SITO’s IR web site at
http://ir.sitomobile.com/ir-calendar.
A replay will be available for 2 weeks starting
on March 29, 2018 at approximately 11:00 a.m. ET. To access the
replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for
international callers. The conference ID# is 13689171.
About SITO Mobile,
Ltd.
SITO delivers consumer location-based
data-driven solutions for brands spanning strategic insights and
media campaign delivery services. Through Consumer Behavior and
Location Sciences™, SITO explores the consumer journey yielding a
powerful strategic knowledge asset for executives and strategic
decision makers delivering actionable insights to understand and
influence consumer behaviors. Our consumer location focused science
reveals deep, real-time understandings of consumer movements,
interests, actions, associations, and experiences providing
increased clarity for brands navigating business decisions,
developing advertising campaigns, and advancing business
imperatives. The company is home to a proprietary location-data
technology stack and has amassed a multi-year consumer behavioral,
movement, location, and demographic database arming clients with a
powerful resource for identifying real-time insights, longitudinal
behavioral research, and delivery of successful media campaigns.
SITO’s in-store targeting, proximity targeting, geo-conquesting and
attribution data combine to create and optimize measurable
hyper-targeted campaigns for brands. For more information regarding
SITO’s science, technology and solutions spanning media and
research, visit www.sitomobile.com.
About Non-GAAP Financial
Measures
We present EBITDA and Adjusted EBITDA and in
this press release to provide a supplemental measure of our
operating performance. We define EBITDA as earnings before interest
expense, income tax expense, depreciation and amortization expense,
and Adjusted EBITDA, as EBITDA before stock based compensation,
certain non-recurring professional expenses related to pending or
threatened contested solicitations of the Company’s shareholders,
investigations of former executives, defense of certain class
action lawsuits, and implementation of a section 382 rights plan.
We believe EBITDA and Adjusted EBITDA are useful performance
measures used by us to facilitate a comparison of our operating
performance and earnings on a consistent basis from
period-to-period and to provide for a more complete understanding
of factors and trends affecting our business than measures under
generally accepted accounting principles in the United States of
America (GAAP) can provide alone. The non-GAAP measures included in
this release, however, should be considered in addition to, and not
as a substitute for or superior to, operating income, cash flows,
or other measures of financial performance prepared in accordance
with GAAP. Please refer to the financial tables included below for
a reconciliation of GAAP to non-GAAP measures.
Cautionary Statement Regarding Certain
Forward-Looking Information
This announcement contains forward-looking
statements. These statements are based on our management’s beliefs
and assumptions and on information currently available to our
management. Forward-looking statements include statements
concerning the following: SITO’s plans and initiatives; our
possible or assumed future results of operations; our ability to
attract and retail customers; our ability to sell additional
products and services to customers; our competitive position; our
industry environment; and our potential growth opportunities. You
should not place undue reliance on forward-looking statements,
because they involve known and unknown risks, uncertainties and
other factors, which are, in some cases, beyond our control and
which could materially affect results. Factors that may cause
actual results to differ materially from current expectations
include, among other things, those listed under “Risk Factors” in
our Annual Report on Form 10-K and the reports we file with the
SEC. Actual events or results may vary significantly from
those implied or projected by the forward-looking statements due to
these risk factors. No forward-looking statement is a
guarantee of future performance. You should read our Annual Report
on Form 10-K and the documents that we reference in our Annual
Report on Form 10-K and have filed as exhibits thereto with the
Securities and Exchange Commission, or the SEC, with the
understanding that our actual future results and circumstances may
be materially different from what we expect, as described in this
announcement. Forward-looking statements are made based on
management’s beliefs, estimates and opinions on the date the
statements are made and the Company undertakes no obligation to
update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change, except as may be
required by applicable law. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, SITO is not guaranteeing, and cannot guarantee, future
financial and operating results, levels of business activity,
performance or achievements.
IR Contact: Rob Fink Hayden IR646.415.8972SITO@haydenir.comSITO
Mobile, Ltd.CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Years Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Media
placement |
$ |
11,116,172 |
|
$ |
14,696,065 |
|
$ |
39,746,351 |
|
$ |
42,859,777 |
|
|
Licensing
and royalties |
|
- |
|
|
- |
|
|
- |
|
|
130,653 |
|
|
Total revenue |
|
11,116,172 |
|
|
14,696,065 |
|
|
39,746,351 |
|
|
42,990,430 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenue |
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
5,525,155 |
|
|
7,878,174 |
|
|
21,343,912 |
|
|
22,242,286 |
|
|
Gross profit |
|
5,591,017 |
|
|
6,817,891 |
|
|
18,402,439 |
|
|
20,748,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
3,564,946 |
|
|
3,914,245 |
|
|
19,213,687 |
|
|
14,522,230 |
|
|
General and
administrative |
|
3,155,437 |
|
|
6,194,355 |
|
|
17,009,684 |
|
|
16,029,040 |
|
|
Legal
settlement - See notes 16 |
|
- |
|
|
3,500,000 |
|
|
- |
|
|
3,500,000 |
|
|
Depreciation and amortization |
|
146,584 |
|
|
141,395 |
|
|
647,680 |
|
|
1,137,985 |
|
|
Total operating expenses |
|
6,866,967 |
|
|
13,749,995 |
|
|
36,871,051 |
|
|
35,189,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(1,275,950 |
) |
|
(6,932,104 |
) |
|
(18,468,612 |
) |
|
(14,441,111 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
Earnings
from joint venture |
|
- |
|
|
- |
|
|
- |
|
|
1,464,754 |
|
|
Gain (loss)
on revaluation of warrant liability |
|
207,136 |
|
|
158,646 |
|
|
1,364,704 |
|
|
(477,810 |
) |
|
Other
income |
|
1,123 |
|
|
- |
|
|
118,753 |
|
|
- |
|
|
Interest
income (expense), net |
|
(6,467 |
) |
|
2,613 |
|
|
1,830 |
|
|
(1,296,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
income taxes |
|
(1,074,158 |
) |
|
(6,770,845 |
) |
|
(16,983,325 |
) |
|
(14,750,603 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit |
|
(1,886 |
) |
|
80,522 |
|
|
(82,282 |
) |
|
80,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations |
|
(1,076,044 |
) |
|
(6,690,323 |
) |
|
(17,065,607 |
) |
|
(14,670,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
Income from
operations of discontinued component |
|
- |
|
|
(56,013 |
) |
|
- |
|
|
(368,857 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
discontinued operations |
|
- |
|
|
(56,013 |
) |
|
- |
|
|
(368,857 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,076,044 |
) |
$ |
(6,746,336 |
) |
$ |
(17,065,607 |
) |
$ |
(15,038,938 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net (loss) per share |
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
(0.04 |
) |
|
(0.30 |
) |
|
(0.68 |
) |
|
(0.69 |
) |
|
|
Discontinued
operations |
|
- |
|
|
(0.00 |
) |
|
- |
|
|
(0.02 |
) |
|
|
Basic and
diluted net (loss) per share |
$ |
(0.04 |
) |
$ |
(0.31 |
) |
$ |
(0.68 |
) |
$ |
(0.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average shares
outstanding |
|
25,453,327 |
|
|
22,009,540 |
|
|
24,926,197 |
|
|
21,249,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SITO Mobile, Ltd.CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
2,597,246 |
$ |
3,611,438 |
|
|
|
Accounts receivable,
net |
|
10,206,664 |
|
13,005,718 |
|
|
|
Other prepaid
expenses |
|
469,041 |
|
374,380 |
|
|
|
Assets from
discontinued operations |
|
- |
|
10,596 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
13,272,951 |
|
17,002,132 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
343,572 |
|
449,949 |
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
|
Capitalized software
development costs, net |
|
861,699 |
|
1,485,285 |
|
|
|
Intangible assets: |
|
|
|
|
|
|
|
Patents,
net |
|
630,857 |
|
742,574 |
|
|
|
Other intangible assets, net |
|
897,007 |
|
1,168,007 |
|
|
|
Goodwill |
|
6,444,225 |
|
6,444,225 |
|
|
|
Other assets |
|
114,101 |
|
92,420 |
|
|
|
|
|
|
|
|
|
|
|
Total other assets |
|
8,947,889 |
|
9,932,511 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
22,564,412 |
$ |
27,384,592 |
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts
payable |
$ |
4,377,805 |
$ |
6,506,902 |
|
|
|
Accrued expenses |
|
4,610,146 |
|
9,911,540 |
|
|
|
Deferred revenue |
|
264,493 |
|
- |
|
|
|
Current obligations
under capital lease |
|
3,571 |
|
2,756 |
|
|
|
Warrant liability |
|
174,684 |
|
1,539,388 |
|
|
|
Liabilities from
discontinued operations |
|
- |
|
210,789 |
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
9,430,699 |
|
18,171,375 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
|
|
Obligations under
capital lease |
|
7,644 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities |
|
7,644 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
9,438,343 |
|
18,171,375 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies - See notes 16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
Preferred stock, $.0001
par value, 5,000,000 shares authorized; |
|
|
|
|
|
|
|
none
outstanding |
|
- |
|
- |
|
|
|
Common stock, $.001 par
value; 100,000,000 shares authorized, |
|
|
|
|
|
|
|
25,529,078 shares
issued and outstanding as of December 31, 2018; and |
|
|
|
|
|
|
|
22,039,529 shares
issued and outstanding as of December 31, 2017 |
|
25,527 |
|
22,038 |
|
|
|
Additional paid-in
capital |
|
185,983,898 |
|
165,008,928 |
|
|
|
Accumulated
deficit |
|
(172,883,356) |
|
(155,817,749) |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
|
13,126,069 |
|
9,213,217 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity |
$ |
22,564,412 |
$ |
27,384,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SITO Mobile, Ltd.RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA
|
|
For the Three Months Ended |
|
|
For the Years Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) |
$ |
(1,076,044 |
) |
$ |
(6,746,336 |
) |
|
$ |
(17,065,607 |
) |
$ |
(15,038,938 |
) |
|
Net income (loss) from discontinued
operations |
|
- |
|
|
(56,013 |
) |
|
|
- |
|
|
(368,857 |
) |
|
Net (loss) from continuing operations |
|
(1,076,044 |
) |
|
(6,690,323 |
) |
|
|
(17,065,607 |
) |
|
(14,670,081 |
) |
|
Adjustments to reconcile net (loss) to
EBITDA: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense included in cost of revenue
and operating expenses: |
|
|
|
|
|
|
|
|
|
|
Amortization included in cost of revenue |
|
207,690 |
|
|
225,609 |
|
|
|
764,375 |
|
|
438,094 |
|
|
Depreciation and other amortization |
|
146,584 |
|
|
141,395 |
|
|
|
647,680 |
|
|
1,137,985 |
|
|
Total
depreciation and amortization expense |
|
354,274 |
|
|
367,004 |
|
|
|
1,412,055 |
|
|
1,576,079 |
|
|
Interest
income (expense), net |
|
(6,467 |
) |
|
2,613 |
|
|
|
1,830 |
|
|
(1,296,436 |
) |
|
Income tax expense |
|
(1,886 |
) |
|
80,522 |
|
|
|
(82,282 |
) |
|
80,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
(713,417 |
) |
|
(6,406,454 |
) |
|
|
(15,573,100 |
) |
|
(11,878,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile EBITDA: |
|
|
|
|
|
|
|
|
|
|
Stock based compensation expense included in operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
302,590 |
|
|
342,674 |
|
|
|
1,805,944 |
|
|
817,061 |
|
|
General and administrative |
|
728,661 |
|
|
560,941 |
|
|
|
4,377,613 |
|
|
1,348,333 |
|
|
Total stock based compensation expense |
|
1,031,251 |
|
|
903,615 |
|
|
|
6,183,557 |
|
|
2,165,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
(loss) on warrant revaluation |
|
207,136 |
|
|
158,646 |
|
|
|
1,364,704 |
|
|
(477,810 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-recurring expenses |
|
|
|
|
|
|
|
|
|
|
Other
litigation |
|
(8,254 |
) |
|
3,526,760 |
|
|
|
509,421 |
|
|
3,526,935 |
|
|
Investigations of former executives |
|
42,603 |
|
|
66,447 |
|
|
|
86,674 |
|
|
741,360 |
|
|
Class
action lawsuits |
|
- |
|
|
893 |
|
|
|
35,991 |
|
|
235,062 |
|
|
Section
382 rights plan |
|
- |
|
|
- |
|
|
|
- |
|
|
135,228 |
|
|
Contested
proxy solicitation pending of threatened against the Company |
|
- |
|
|
96,780 |
|
|
|
59,998 |
|
|
2,020,370 |
|
|
Total
non-recurring expenses |
|
34,349 |
|
|
3,690,880 |
|
|
|
692,084 |
|
|
6,658,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
145,047 |
|
$ |
(1,970,605 |
) |
|
$ |
(10,062,163 |
) |
$ |
(2,575,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
SITO Mobile (NASDAQ:SITO)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
SITO Mobile (NASDAQ:SITO)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024