VANCOUVER, Oct. 23 /CNW/ - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX-V: OM), which provides a leading web-based real estate transaction platform, today announces its financial results for the three- and 12-month periods ended June 30, 2008. All figures are reported in Canadian dollars unless otherwise stated.
Fiscal 2008 Operational Highlights
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- Sold United Kingdom ("U.K.") subsidiary, refocusing resources to
better position the Company for growth in the British Columbia
("B.C.") market
- Expanded user base to approximately 983 lawyers and notaries from
approximately 449 in fiscal 2007
- Cumulative transactions processed for the year increased to
approximately 55,000 from approximately 34,000 in fiscal 2007
- Cumulative transactions processed in Q4 fiscal 2008 increased to
approximately 16,900 from approximately 12,900 in Q4 fiscal 2007
- Average daily revenue was approximately $5,500, up from approximately
$3,500 in fiscal 2007
- Average daily revenue for Q4 fiscal 2008 was approximately
$6,700, up from approximately $5,300 in Q4 fiscal 2007
- Completed integration of econveyance with Assyst Real Estate,
Emergis' web application that electronically links lawyers and
notaries to certain lenders
- Signed agreement to integrate econveyance with Chicago Title
Insurance Company's Canadian title insurance customer application,
CTIC Express, and First Canadian Title's mortgage processing
application, Lender-Lawyer Connect(TM)
- Named one of the Branham300 top 25 up and coming information
technology companies for 2007
- Announced non-brokered private placement, which closed subsequent to
year end for total proceeds of $565,301
Fiscal 2008 Q4 and Year End Financial Summary
---------------------------------------------
On March 7, 2008, OneMove completed the sale of its U.K.-based subsidiary,
OneMove Limited. As a result, OneMove's financial results for the 12 months
ended June 30, 2008, as well as the three and 12 months ended June 30, 2007,
exclude contributions from OneMove Limited and are reported on a continuing
operations basis.
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Q4 Q4 %
FY 2008 FY 2007 Change
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Revenue $492,510 $351,318 + 40%
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EBITDA(xx) $(531,996) $(1,458,317) + 64%
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Net loss
((x)from continuing operations) $581,761 $1,793,834(x) + 68%
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Net loss per share
((x)from continuing operations) $(0.01) $(0.08)(x) + 88%
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FY FY %
2008 2007 Change
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Revenue $1,637,558 $960,434 + 71%
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EBITDA(xx) $(2,910,301) $(5,420,647) + 46%
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Net loss
((x)from continuing operations) $1,370,516(x) $2,595,764(x) + 47%
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Net loss per share
((x)from continuing operations) $(0.02)(x) $(0.12)(x) + 83%
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"Throughout fiscal 2008, we demonstrated continued growth in B.C.," said Martin Johnson, President and CEO, OneMove. "We realized a 60% year-over-year increase in the number of econveyance transactions we processed and more than doubled our customer base. With the sale of our U.K. subsidiary in the third quarter, we reduced our expenses and are now able to allocate greater resources toward the market opportunity in B.C."
Mr Johnson continued: "Entering fiscal 2009, we recognize the downward pressure the current economic conditions are having on the real estate market. However, with the deadline for mandatory electronic filing of completed conveyance documents less than two years away, the adoption of paperless property transfer is gaining momentum across B.C. Currently, only 37% of transactions are filed electronically. We believe our unique web-based service model and ability to seamlessly connect all those involved in the real estate transaction positions us to capitalize on the expanding market opportunity. We expect to grow transaction volume by increasing the number of lawyers and notaries on our econveyance platform and concentrating our marketing efforts on law firms and real estate agencies that process higher volumes of conveyance transactions. We also plan to increase revenue per transaction by continuing to integrate with other real estate industry service providers."
Fiscal 2008 Q4 and Year End Financial Review --------------------------------------------
Revenue for fiscal 2008 increased 71% to $1,637,558 from $960,434 for fiscal 2007, primarily reflecting a 60% increase in the number of transactions processed through econveyance. The year-over-year improvement in transaction volume reflects the overall growth in OneMove's customer base as well as the Company's success in expanding its base of high-volume users. During fiscal 2008, OneMove processed approximately 55,000 transactions, compared to 34,000 transactions last year. As a result, average daily revenue increased to approximately $5,500 from approximately $3,500 in fiscal 2007.
For the three months ended June 30, 2008, revenue was $492,510, up 40% from revenue of $351,318 for the three months ended June 30, 2007. During Q4 fiscal 2008, OneMove processed approximately 16,900 transactions, compared to 12,900 transactions in Q4 fiscal 2007. Average daily revenue for Q4 fiscal 2008 increased to approximately $6,700 from $5,300 in Q4 fiscal 2007.
For fiscal 2008, total expenses were $3,215,755, compared to $3,333,537 for fiscal 2007. The decrease in expenses reflects initial savings, in areas such as travel expense and advertising expense, which the Company realized as a result of the divestiture of its U.K. operations, as well as decreases in interest expense and deferred development costs. These savings were offset primarily by OneMove's increased investment in the business, in areas such as salaries and wages and commission fees paid to BC OnLine, reflecting the year-over-year growth in the Company's B.C. operations. Total expenses for the three months ended June 30, 2008, were $860,197, compared to $1,057,519 for the three months ended June 30, 2007. Going forward, OneMove will focus on maintaining tight cost controls. The Company will continue to look at reducing investments in non-revenue generating activities and re-investing those savings in areas that support future growth.
EBITDA was $(2,910,301), for fiscal 2008, compared to $(5,420,647) in fiscal 2007. EBITDA for the three months ended June 30, 2008, was $(531,996), compared to $(1,458,317) for the three months ended June 30, 2007.
For fiscal 2008, loss from continuing operations was $1,370,516, or $(0.02) per share, compared to $2,595,764, or $(0.12) per share, in fiscal 2007. Net loss for fiscal 2008 was $3,087,820, or $(0.06) per share, compared to $6,198,190, or $(0.28) per share, in fiscal 2007. Net loss for the three months ended June 30, 2008, was $581,761 or $(0.01) per share, compared to $1,793,834, or $(0.08) per share, for the three months ended June 30, 2007.
Cash flows from continuing operations were $(1,603,763) as at June 30, 2008, compared to $(1,361,975) as at June 30, 2007. As at June 30, 2008, OneMove had cash and cash equivalents of $193,850, compared to $3,704,971 as at June 30, 2007. The Company had working capital of $30,896 as at June 30, 2008, compared to $3,646,270 at June 30, 2007. Subsequent to year end, OneMove completed a private placement for proceeds of $565,301, strengthening the Company's cash position.
As at June 30, 2008, total shares issued and outstanding were 47,884,942.
To view full MD&A and financial statements for OneMove please click here: http://files.newswire.ca/736/OneMove_MDA_and_Financials.pdf. In addition, full financial statements and MD&A for OneMove will be available at www.onemovetech.com and www.sedar.com
(xx)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-V: OM) offers a leading real estate transaction platform. Through econveyance(TM), its proprietary web-based conveyancing software solution, OneMove(TM) simplifies and expedites the process of buying and selling real estate in British Columbia, Canada. Econveyance links all participants in the property transfer process, offering a secure and efficient means of seamlessly completing the transaction online. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.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.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
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