Generated $3.3 million in Revenue and $843,000 in Adjusted EBITDA (unaudited)
TORONTO, ONTARIO – May 28, 2020 – Adcore Inc. (the “Company” 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 financial results for the three months ended March 31, 2020.
First Quarter 2020 Highlights (Unaudited)
- Total revenue was $3.3 million compared to $3.2 million for the same period in 2019, an increase of 3%.
- Revenue less cost of revenues (gross margin) was 68% compared to 64% for the same period in 2019.
- Adjusted EBITDA (see “Use of Non-IFRS Measures”) was $843,000 compared to $1.3 million for the same period in 2019, a decrease of 34%.
- As of March 31, 2020, total working capital was $6.3 million compared to $5.5 million for the year ended Dec 31, 2019, an increase of $800,000.
- As of March 31, 2020, the Company’s cash and cash equivalents were $5.3 million, compared to $4.9 million for the year ended Dec 31, 2019, an increase of $400,000.
- Continued to invest in its global sales and marketing team and industry-leading technology, including developing Adcore’s app for the Shopify app store.
- On January 28, 2020, Donville Kent Asset Management Inc., a Toronto based North American equity fund, selected Adcore as one of the twelve stocks to own in the next decade in the January 2020 edition of its ROE Reporter publication.
- On March 17, 2020, announced the precautionary steps it is taking following COVID-19 global outbreak.
Omri Brill, Chief Executive Officer commented on the results, “I couldn’t be more proud with the Company’s first quarter financial results. The fact that in the midst of the COVID-19 pandemic and these challenging times we have managed to maintain and even increase the Company’s gross profit year over year and grow our working capital by $800,000 is an impressive achievement by any standard. The Company’s strong balance sheet positions us well to deal with the economic downturn related to the COVID-19 crisis and to invest in future post-COVID-19 growth opportunities. During these unique times, the health and safety of our employees, family members and partners is our primary focus. Throughout the second part of the quarter we successfully implemented temporary work-from-home policies designed to minimize the risk to our employees worldwide and ensure continued service at the highest standard to our many customers, resulting in minimal disruption of Adcore’s business. I’m glad to report that as of May 3, 2020 all of our global offices except Toronto, which continues to operate remotely, have reopened.”
Mr. Brill continued, “When looking beyond the challenges posted by the COVID-19 pandemic, we see many promising opportunities for the company. Most notably, we see a major shift towards e-commerce, an area in which the company specializes in. Adcore is already in the process of developing some very interesting technologies in this field and plans to announce its brand-new Shopify app in the near future. I remain extremely bullish with regards to the Company’s future and as we move beyond the peak of the crisis and the global economy normalizes, this should be reflected in the Company’s revenues in the coming months.”
“I couldn’t be more proud with the Company’s first quarter financial results. The fact that in the midst of the COVID-19 pandemic and these challenging times we have managed to maintain and even increase the Company’s gross profit year over year and grow our working capital by $800,000 is an impressive achievement by any standard.
Conference Call and Webcast Information
Adcore will host a conference call at 9:00AM ET on June 2, 2020 to answer questions about the financial and operational performance of the Company for the first quarter ended March 31, 2020. The conference call will include a brief statement by management and will focus on answering questions about Adcore’s results during the quarter. Please submit your questions prior to the call at: email@example.com
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Webinar ID: 840 8944 2171
International numbers available: https://us02web.zoom.us/u/kbTN2IARHG
USE OF NON-IFRS MEASURES
Management uses Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Adcore’s operating performance and for planning and forecasting future business operations. Adjusted EBITDA excludes significant items which are non-operating in nature in order to evaluate Adcore’s core operating performance against prior periods. Adjusted EBITDA is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, overall change in cash or liquidity of the business as a whole. Management believes the use of Adjusted EBITDA allows investors and analysts to understand the results of the continuing operations of the Company and its subsidiary, by excluding certain items that have a disproportionate impact on Adcore’s results for a particular period. Management’s method of determining non-GAAP financial measures are evaluated periodically and may differ from other companies’ methods and therefore may not be comparable to those used by other companies.
The following table presents the Adjusted EBITDA for the periods ended:
Three months ended March 31, 2020
Three months ended March 31, 2019
CAD$ in thousands (Unaudited)
Depreciation and Amortization
Global Expansion & Relocation Expenses
Adcore’s first quarter 2020 financial statements are available on the Company’s SEDAR profile at www.sedar.com. All amounts are in CAD and are based on ADCORE’s condensed consolidated interim financial statements for the three months ended March 31, 2020 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 three months ended March 31, 2020 and 2019, 0.705, and 0.752 respectively.
Adcore 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 Adcore’s Investor Relations website
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 at 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.
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