Adjusted EBITDA near break-even for the quarter
TORONTO, Nov. 29, 2018 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX- V: KUU), a technology company focused on acquiring, developing and distributing lifestyle and mobile game applications for the female audience, has reported its unaudited financial results for the three month period ended September 30, 2018. The Company’s unaudited interim consolidated financial statements as at and for the three months ended September 30, 2018 and related management’s discussion and analysis can be found on the Company's SEDAR profile at www.sedar.com. References in this release to “US$” are to United States dollars. The Company’s financial year end is June 30.
Highlights for the Fiscal First Quarter Ended September 30, 2018 (unaudited):
- The non-IFRS adjusted EBITDA during the three-month period ended September 30, 2018 was negative US$215,517, making this period’s adjusted EBITDA a near break-even quarter. The non-IFRS adjusted EBITDA was calculated by adjusting the Company’s net loss of US$2,291,147 for the three-month period ended September 30, 2018 by subtracting share-based compensation expense of US$469,630, depreciation and amortization of US$1,536,634 and interest expense of US$95,466 and by adding foreign exchange gain of US$26,100.
- Revenue for the three-month period ended September 30, 2018 was US$4.1 million, a year-over-year increase of 46% compared to US$2.8 million for the three-month period ended September 30, 2017, and a quarter-over-quarter decrease of 16% compared to US$4.9 million for the three-month period ended June 30, 2018. This revenue was generated from sales of the Recolor app, the in-application sale of virtual goods from the My Hospital game and in-application ad revenue.
- The Company had shareholders’ equity of US$8,076,225 as at September 30, 2018, compared to shareholders’ equity of US$9,708,134 as at June 30, 2018.
Jouni Keränen, CEO of the Company, stated: “While we had hoped for a much better start to the new fiscal year, we believe that the operational enhancements and product improvements we made in the first quarter and continue to make in the second quarter will produce material results in 2019. The lower revenue numbers were primarily attributed to specific one-time disruptions on a distribution platform earlier in the year and will not be recurring. Despite the setback, we continue to see significant growth opportunities in the coloring segment and are focused on maximizing the full potential of the Recolor and Recolor By Numbers products. During 2019 we plan to also create a more diversified product portfolio with the launch of both third-party and internally developed new products. With the previously announced financing (see the Company’s November 13, 2018 press release) expected to close soon and other non-dilutive financings under discussion, Kuuhubb is well positioned for strong growth in 2019.”
Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile game applications for the female audience. Its strategy is to create sustainable shareholder value through acquisitions of proven, yet underappreciated, assets with robust long-term growth potential. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on developing U.S. brand collaborations and Asian partnerships.
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and products, development and growth of the Company’s business, and the closing of the proposed financing) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, risks related to the growth strategy of the Company, the possibility that results from the Company’s growth and development plans will not be consistent with the Company's expectations, failure to complete the proposed financing, the possibility that the completion of the proposed financing may be delayed or that the terms of the proposed financing may change, the early stage of the Company's development, competition from companies in a number of industries, the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company and the other risks disclosed under the heading "Risk Factors" in the Company's annual information form dated November 8, 2018 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Jouni Keränen – CEO
Office: +358 40 590 0919
Office: +1 (416) 479-9547