Adcore reports record 2019 annual results highlighted by 49% YoY growth in Adjusted EBITDA

Generated $15 Million in Revenue and $5.6 Million in Adjusted EBITDA

TORONTO, ONTARIO – April 6, 2020 Adcore Inc. (the “Corporation” or “Adcore”) (TSXV:ADCO), a leading provider of machine-learning powered advertising technologies used by digital agencies and advertisers to enhance and maximize Search Engine Marketing (“SEM”), today announced its audited financial results for the year ended December 31, 2019.

2019 Annual Highlights

  • Total revenue of $15 million compared to $11 million for the year ended 2018, an increase of 35%.
  • Revenue less media costs (gross margin) of 65% compared to 56% for the year ended 2018
  • Adjusted EBITDA (see “Use of Non-IFRS Measures”) was $5.6 million compared to $3.8 million for the year ended 2018, an increase of 49%
  • As of December 31, 2019, total working capital of $5.5 million compared to ($166,000) for the year ended December 31, 2018, an increase of $5.7 million
  • As of December 31, 2019, the Corporation’s cash and cash equivalents was $4.9 million

 

Fourth Quarter 2019 Highlights

  • Total revenue of $4.2 million compared to $3.2 million for the quarter ended December 31, 2018, an increase of 31%.
  • Revenue less media costs (gross margin) of 71% compared to 64% for the quarter ended December 31, 2018
  • Adjusted EBITDA (see “Use of Non-IFRS Measures”) of $1.7 million compared to $1.4 million for the quarter ended December 31, 2018, an increase of 21%
  • As of December 31, 2019, the Corporation’s cash and cash equivalents was $4.9 million compared to $3.9 million for the quarter ended September 30, 2019, an increase of 26%
  • Continued to invest in its global sales and marketing team and industry-leading technology, including the launch of an AI product clustering for data feeds
  • On November 25, 2019, announced that it had record third-quarter 2019 results; Highlighted by 37% YOY Growth in Adjusted EBITDA
  • On January 28, 2020, announced that Donville Kent Asset Management Inc., a Toronto based North American equity fund, has selected Adcore as one of the twelve stocks to own in the next decade in the January 2020 edition of its ROE Reporter publication

Adcore’s Chief Executive Officer, Omri Brill, commented on the financial results, “We are especially pleased with our results for the fourth quarter of 2019 and for the entire year of 2019, as we achieved record revenue and Adjusted EBITDA. Achieving these feats are even more impressive when taking into consideration that for the first half of the year the Corporation’s main focus was completing its public listing. The Corporation’s performance exceeded our original expectations, as we continued to see very strong momentum in our business as well as higher gross margins.”

Mr. Brill continued, “Even under the coronavirus outbreak, our outlook for 2020 remains bullish and we expect to make several exciting announcements over the coming months to drive shareholder value.”

Conference Call and Webcast Information

Adcore will host a conference call at 9:00AM ET on April 7, 2020 to answer questions about the financial and operational performance of the Corporation for the fourth quarter and the year ended December 31, 2019. The conference call will include a brief statement by management and will focus on answering questions about Adcore’s results during the quarter and year. Please submit your questions prior to the call at: invest@adcore.com

 

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USE OF NON-IFRS MEASURES

 Adjusted EBITDA

Management uses adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Adcore’s operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items which are non-operating in nature in order to evaluate Adcore’s core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Corporation and its subsidiary, by excluding certain items that have a disproportionate impact on Adcore’s results for a particular period. Management’s method of determining non-GAAP financial measures are evaluated periodically and may differ from other companies’ methods and therefore may not be comparable to those used by other companies.

 The following table presents the Adjusted EBITDA for the periods ended:

 

Year ended

December 31, 2019

Year ended

December 31, 2018

 CAD $ in thousands CAD $ in thousands
Operating profit for the period 2,549 2,709
Adjustments:
Depreciation and amortization  537 268
Issuance Expenses  2,047 0
Share-based payments 222 774
Relocation Expenses 229 0
Total Adjustments  3,034 1,042
Adjusted EBITDA    5,583   3,751

ADCORE’s 2019 annual financial statements are available on the Corporation’s SEDAR profile at www.sedar.com. All amounts are in CAD and are based on ADCORE’s audited consolidated financial statements for the year ended December 31, 2019 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

 

Amounts in this press release are in CAD based on the following USD to CAD average exchange rates for each of the relevant periods: For the year ended December 31, 2019 and 2018, 0.75, and 0.77 respectively.

 

ABOUT ADCORE

Adore is a leading provider of machine-learning powered advertising technologies. Adcore’s suite of solutions empowers digital advertisers with automated solutions to enhance and maximize their Search Engine Marketing (“SEM”). Adcore’s technologies are designed for in-house marketing professionals, freelancers and advertising agencies to scale their SEM activity and maximize their ROI.

 

By combining extensive industry knowledge and experience with its proprietary artificial intelligence (“AI”) engine, Adcore offers a unique SEM platform. In addition to being named numerous times on Deloitte’s Fast 50 Technology list, Adcore is a certified Google Premier Partner and Microsoft Partner.

 

Adcore serves hundreds of clients worldwide including: Digital Marketing Agencies, e-Commerce Businesses, Travel, Financial Technology and Gaming Companies and its strength as an agile and leading player in the industry has led to winning the largest online tender to date in Israel, a co-managed 5-year $125 million contract with the Israel Government Advertising Agency.

 

Established in 2006 and majority-owned by its founder and CEO, Mr. Omri Brill, the Corporation and its subsidiaries employs over thirty people in its headquarters in Tel Aviv, Israel and satellite offices in Melbourne, Australia, Toronto, Ontario and Winnipeg, Manitoba.

 

For more information about Adcore, please visit https://www.adcore.com/investor

 

FORWARD-LOOKING STATEMENTS

 

This press release contains certain forward-looking statements, including statements about the Corporation. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof.

 

Forward-looking statements involve significant risk, uncertainties, and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Corporation cannot assure readers 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 the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

 

For further information please contact:

 

ADCORE INC.

Omri Brill, CEO

Telephone: 647-497-5337

Email: info@adcore.com

Website: www.adcore.com


Neither the 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 the accuracy of this release.