Company achieves 183% year-over-year revenue growth
VANCOUVER, Oct. 29 /CNW/ - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX-V: OM) announces its financial results for the three- and 12-month periods ended June 30, 2007. All results are reported in Canadian dollars unless otherwise stated.
Fiscal 2007 Summary
-------------------
- Revenue of $1.2 million, a 183% increase over fiscal 2006
- Average daily transactions in B.C. increased from approximately 7,000
in the first quarter to 13,000 in the fourth quarter
- Average daily revenue in B.C. grew from approximately $3,000 in the
first quarter to approximately $5,000 in the fourth quarter
- EBITDA(x) (as defined at the end of the release) of $(4.7) million,
compared to $(1.8) million in fiscal 2006
- Net loss of $6.2 million, or $0.28 per share, compared to net loss of
$4.2 million or $0.38 per share in fiscal 2006
- Listed on the TSX Venture Exchange, completed $2.0 million brokered
private placement
- Completed Acquisition of OneMove Limited in the U.K.
- Launched Home Buyer Expense Insurance, in partnership with HSBC, in
the U.K.
- Launched U.K.'s fastest growing free property listing web portal
- Completed $8.0 million brokered private placement
- Signed integration agreement with U.K.-based WebSky, completed
integration of Expert Agent software and OneMove's MMS subsequent to
year end
"Our focus for fiscal 2007 was laying a foundation for growth," said Martin Johnson, President and CEO, OneMove. "We listed on the TSX Venture Exchange, completed $10.0 million in private placements to provide us with the capital necessary to fund our growth initiatives, and expanded into the U.K. through our acquisition of OneMove Limited. As the year progressed, we transitioned our Move Management System (MMS) in the U.K. from development to commercialization, and during the fourth quarter we saw a notable increase in customer leads. In B.C., we enhanced our econveyance(TM) offering and commenced a marketing campaign in partnership with the B.C. Land Title Office to promote electronic filing, which resulted in the doubling of our customer base over last year."
"Looking forward, with most of our core operational developments now behind us, we are well positioned to focus on advancing our product and service offerings, enhancing our sales and marketing, and expanding our customer base in B.C. and the U.K. The real estate industry is moving toward paperless transactions, and with our econveyance, MMS and Personal Moving Consultant (PMC) offerings, OneMove is at the forefront of that shift."
Fiscal 2007 Review
------------------
Fiscal 2007 revenues grew by $0.8 million, or 183% to $1.2 million, compared to $0.4 million for fiscal 2006. Revenues from Canadian operations were $1.0 million, a year-over-year increase of 134%, and revenue from U.K. operations were $0.2 million, compared to $58,000 in fiscal 2006. Overall, revenue improved as a result of the combined growth of the Company's Canadian and U.K. operations.
In B.C., the combination of OneMove's marketing efforts and the strength of the B.C. real estate market drove a steady increase in econveyance transactions throughout fiscal 2007. During the year, average daily transactions increased significantly from 7,000 during the first quarter to 13,000 in the fourth quarter. Average daily revenue increased from approximately $3,000 in the first quarter to approximately $5,000 in the fourth quarter.
In the U.K., as OneMove strengthened its presence in the England and Wales real estate market by transitioning its MMS from beta to commercialization, the Company saw growth in the adoption rate of its services. In addition, in fiscal 2007, OneMove enhanced its offering with the introduction of its Home Buyers Expense Insurance (HBEI). To drive the growth of its estate agent network, the Company launched the U.K.'s fastest growing free property listing portal.
Total expenses for fiscal 2007 were $7.4 million, compared to $3.1 million for fiscal 2006. The year-over-year increase in expenses was driven by public company costs, as a result of OneMove's listing on the TSX Venture Exchange in October, and increased investments in the Company's growing B.C. and U.K. operations.
EBITDA was $(4.7) million for fiscal 2007, compared to $(1.8) million in fiscal 2006. The year-over-year change reflects investment in current operations and infrastructure to support future growth. EBITDA for Canadian operations was $(0.6) million, compared to $(1.1) million in fiscal 2006, and EBITDA for U.K. operations was $(3.3) million, compared to $(1.7) million in fiscal 2006.
For fiscal 2007, net loss was $6.2 million or $0.28 per share, compared to $4.2 million or $0.38 per share in fiscal 2006. Fiscal 2007 net loss from Canadian operations was $1.3 million, compared to a net loss of $3.7 million for fiscal 2006. For OneMove's U.K. operations, net loss for the year was $3.7 million, compared to a loss of $1.8 million in the prior year.
Fourth Quarter Review
---------------------
Revenues for the fourth quarter of fiscal 2007 grew by $0.2 million, or 152% to $0.4 million, compared to $0.2 million for the same period in fiscal 2006. Revenues from Canadian operations for the fourth quarter were $0.2 million, a quarter-over-quarter increase of 157%. Revenues from U.K. operations were $0.2 million, a quarter-over-quarter increase of 113%. During the fourth quarter, OneMove processed 13,000 econveyance transactions in B.C., compared to 6,000 transactions in the fourth quarter of last year, resulting in a daily average revenue increase of approximately $2,500 over daily average revenue of approximately $2,500 in the fourth quarter of 2006. In the U.K., the Company moved beyond the beta testing stage of its MMS, resulting in a significant increase in the adoption of its services.
OneMove's fourth quarter revenues tend to be higher compared to other quarters, due to the seasonality of the real estate market. The largest number of home buying and selling transactions occur between April and June.
Total expenses for the fourth quarter of fiscal 2007 were $2.2 million, compared to $1.1 million for fiscal 2006. The quarter-over-quarter increase in expenses was driven by public company costs and increased investments in the Company's B.C. and U.K. operations.
EBITDA was $(1.4) million for fourth quarter fiscal 2007, compared to $(0.7) million in fiscal 2006. EBITDA for Canadian operations was $0.2 million, compared to $(0.05) million in fiscal 2006, and fourth quarter EBITDA for U.K. operations was $(0.9) million, compared to $(0.7) million in fiscal 2006. Although the Company experienced quarter-over-quarter improvements in revenues, during the fourth quarter OneMove continued to invest in its operations and further enhancements to its product and service offering in B.C. and the U.K. Management expects quarterly fluctuations in EBITDA due to the seasonality of the real estate market.
For the fourth quarter, net loss was $1.8 million or $0.05 per share, compared to $0.8 million or $0.09 per share in the fourth quarter of fiscal 2006. Fourth quarter fiscal 2007 net loss from Canadian operations was $0.05 million, compared to a net loss of $0.2 million for fourth quarter fiscal 2006. For OneMove's U.K. operations, net loss for the quarter was $1.0 million, compared to a loss of $0.7 million the prior year.
Cash and cash equivalents were $3.7 million at June 30, 2007, primarily reflecting the proceeds from the brokered private placements OneMove completed in May 2007. In addition, the Company had working capital of $3.0 million at June 30, 2007, compared to $(1.1) million at June 30, 2006.
Subsequent to Year End
----------------------
Looking ahead, OneMove is committed to growing its customer base, enhancing its offering and attracting strategic partners that offer complementary products and services.
In B.C., the Company will continue on its joint marketing initiative with the B.C. Land Title Office to encourage the adoption of electronic document filing in the real estate industry. In addition, OneMove is working to expand its product and service offering. Subsequent to year end, the Company released econveyance 7.0., which is integrated with Emergis's Real Estate Assyst to include the electronic transfer of mortgage instructions.
In the U.K., with the completion of the integration of Company's MMS and Expert Agent subsequent to year end, OneMove added 535 estate agents to its network, resulting in approximately 900 new customer leads. In addition, the Company is working to capitalize on opportunities within the industry by expanding its offering and building strategic partnerships. With the June introduction of Home Information Packs ("HIP") by the U.K. government, OneMove signed a HIP distribution agreement with MacDonald Dettwiler and Associated Ltd. ("MDA") immediately subsequent to year end.
To view the full set of financial statements and MD&A for OneMove, visit www.onemovetech.com or www.sedar.com
(x)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) is a real estate transaction platform, currently serving the British Columbia, England and Wales real estate markets. By combining personal service, unique products and leading edge technology, OneMove(TM) simplifies and expedites the process of buying and selling real estate. The Company's product and service offerings include: econveyance(TM) in British Columbia, and a Move Management System, Personal Moving Consultants, Home Buyer Expense Insurance, and the largest free online real estate listing database in England and Wales. 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
ONEMOVE TECHNOLOGIES INC.
(formerly Interlude Capital Corp.)
CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30
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2007 2006
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ASSETS
Current
Cash and cash equivalents $ 3,877,897 $ 2,680
Receivables 267,386 155,703
Government assistance receivable 98,474 457,784
Prepaid expenses and deposits 76,010 38,336
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4,319,767 654,503
Equipment 843,231 268,601
Deferred development costs - 188,837
Intangible asset 10,800 21,600
Long term deposits 299,434 -
Deferred financing costs - 182,521
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$ 5,473,232 $ 1,316,062
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current
Accounts payable and accrued liabilities $ 877,828 $ 1,155,088
Deferred income 22,867 -
Current portion of loans payable 434,555 308,804
Current portion of capital lease obligations 33,528 -
Dividends payable - 120,000
Preferred shares - 200,000
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1,368,778 1,783,892
Loans payable 312,652 306,074
Capital lease obligations 72,882 -
Non-controlling interest - 69,493
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1,754,312 2,159,459
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Shareholders' equity (deficiency)
Capital stock 18,550,451 4,780,220
Convertible loans - 1,714,787
Contributed surplus 1,607,344 891,980
Deficit (16,438,875) (8,230,384)
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3,718,920 (843,397)
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$ 5,473,232 $ 1,316,062
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"Martin Johnson" Director "Tejinder Grewal" Director
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ONEMOVE TECHNOLOGIES INC.
(formerly Interlude Capital Corp.)
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
YEAR ENDED JUNE 30
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2007 2006
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REVENUES $ 1,203,944 $ 425,353
EXPENSES
Advertising 734,428 240,168
Amortization of deferred development costs 188,837 251,781
Amortization of equipment 340,036 80,160
Amortization of intangible asset 10,800 10,800
Commissions and fees 335,153 113,185
Consulting fees 77,640 146,224
Insurance 53,981 12,446
Interest and bank charges 58,090 24,346
Interest on convertible loans 67,103 42,038
Interest on loans 430,226 76,130
Investor relations and filing fees 133,693 -
Office and general 305,394 209,574
Professional fees 384,604 267,678
Rent and utilities 272,966 115,840
Shares issued for services - 26,250
Stock based compensation 322,911 380,613
Salaries and wages 2,543,888 739,177
Telephone 383,349 111,331
Travel 587,738 232,735
Web site planning and design 143,390 -
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7,374,227 3,080,476
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Loss before other items (6,170,283) (2,655,123)
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OTHER ITEMS
Other income 42,550 280
Interest on preferred shares (12,000) (24,000)
Foreign exchange gain (loss) (96,317) 6,553
Loss on disposal of equipment (31,633) -
Loss from write off of investment
in Easy Convey - (1,240,565)
Loss from equity interest - (496,169)
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(97,400) (1,753,901)
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Loss before non-controling interest (6,267,683) (4,409,024)
Non-controlling interest 69,493 191,630
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Loss for the year (6,198,190) (4,217,394)
Deficit, beginning of year (8,230,384) (2,948,146)
Related party adjustment (2,010,301) (1,064,844)
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Deficit, end of year $(16,438,875) $ (8,230,384)
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Net loss per common share
Basic $ (0.28) $ (0.38)
Fully diluted $ (0.28) $ (0.38)
Weighted average number of common shares
Basic 21,947,226 11,149,272
Fully diluted 21,947,226 11,149,272
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ONEMOVE TECHNOLOGIES INC.
(formerly Interlude Capital Corp.)
CONSOLIDATED STATEMENTS OF CASH FLOW
YEAR ENDED JUNE 30
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2007 2006
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CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the year $ (6,198,190) $ (4,217,394)
Items not affecting cash:
Amortization of deferred
development costs 188,837 251,781
Amortization of equipment 340,036 80,160
Amortization of intangible asset 10,800 10,800
Shares issued for services - 26,250
Interest on preferred shares 12,000 24,000
Stock-based compensation 322,911 380,613
Accrued interest on convertible loans 67,103 42,038
Non-controlling interest (69,493) (191,630)
Loss from equity investment - 496,169
Interest on loans 296,327 -
Loss on disposal of equipment 31,633 -
Loss on write-off of investment - 1,240,565
Unrealized foreign exchange 14,940 -
Changes in non-cash working capital
(Increase) decrease in receivables (109,017) (21,913)
(Increase) decrease in government
assistance receivable 359,310 (457,784)
Increase in prepaid expenses (37,674) (1,905)
Increase (decrease) in accounts payable (175,707) 470,176
Increase in deferred revenue 22,867 -
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Net cash used in operating activities (4,923,317) (1,868,074)
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CASH FLOWS FROM FINANCING ACTIVITIES
Convertible loan proceeds 424,650 1,336,149
Loan proceeds 2,838,022 668,879
Loan repayments (3,080,442) -
Issuance of shares for cash 10,173,709 1,453,649
Share issuance costs (1,214,720) (121,654)
Capital lease payments (12,832) -
Long term deposits (189,142) -
Subscriptions receivable - 96,593
Deferred financing fees - (69,192)
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Net cash provided by financing activities 8,939,245 3,364,424
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (254,865) (81,405)
Bank indebtedness acquired on acquisition
of OneMove UK - (60,274)
Long term deposits (110,292) -
Cash received on recapitalization 211,829 -
Investment in subsidiaries - (1,390,478)
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Net cash used in investing activities (153,328) (1,532,157)
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Effect of foreign exchange on cash
and equivalents 12,617 -
Change in cash and cash equivalents
during the year 3,875,217 (35,807)
Cash and cash equivalents, beginning of year 2,680 38,487
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Cash and cash equivalents, end of year $ 3,877,897 $ 2,680
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Cash paid during the year for interest $ 81,480 $ 9,979
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Cash paid during the year for income taxes $ - $ -
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%SEDAR: 00023118E