Goldhills Holding Ltd. press release
OneMove(TM) Reports Second Quarter Fiscal 2008 Results
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VANCOUVER, Feb. 21 /CNW/ - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX-V: OM), a provider of a leading web-based real estate transaction platform, today announces its financial results for the three- and six month periods ended December 31, 2007. All results are reported in Canadian dollars unless otherwise stated.
Second Quarter Fiscal 2008 Summary Revenue of $0.5 million, a 103% increase over Q2 2007 Cumulative transactions processed in B.C. increased to approximately 12,000 compared to approximately 6,500 in Q2 2007 Average daily revenue in B.C. grew to approximately $4,900 from approximately $2,700 in Q2 2007 EBITDA(x) (as defined at the end of the release) of $(1.1) million, compared to $(1.1) million in Q2 2007 Net loss of $1.2 million, or $(0.02) per share, compared to net loss of $1.9 million, or $(0.10) per share, in Q2 2007 Subsequent to quarter end, Company entered into a binding Memorandum of Understanding for the sale of its U.K. based subsidiary, OneMove Limited.
"During the second quarter, we continued to demonstrate significant year-over-year growth in our B.C. operations," said Martin Johnson, President and CEO, OneMove. "We are pleased with our performance to date. However, results in the U.K., although steadily improving, have been lower than expected. As such, we are shifting our focus back to our domestic operations, and as announced subsequent to quarter end, we are selling our U.K.-based subsidiary."
Mr. Johnson continued: "With an average of 800,000 residential real estate transactions conducted per year in B.C., and the continued push toward paperless transactions, we believe there is significant opportunity for growth domestically. We will continue to increase revenue per transaction by integrating with other real estate industry service providers and grow transaction volume by concentrating our marketing and sales efforts on law firms that have higher volumes of conveyance transactions."
Second Quarter Review
Revenue for Q2 fiscal 2008 grew 103% to $0.5 million, compared to $0.2 million for the same period in fiscal 2007. Revenue from Canadian operations was $0.4 million, and revenue from U.K. operations was $0.1 million. For the first half of fiscal 2008, revenue was $1.0 million, up from $0.5 million for the first half of fiscal 2007.
During Q2 2008, OneMove processed 12,000 econveyance transactions in B.C., compared with 6,500 transactions in Q2 of last year, resulting in an increase in average daily revenue to approximately $4,900, from approximately $2,700 in Q2 of 2007. In the U.K., the Company completed 161 contracts, compared to 78 in Q2 2007 and saw customer sign-ups increase to 274 compared to 104 in the prior year.
For Q2 fiscal 2008, total expenses were $1.8 million, or 361% of revenue, compared to $1.9 million, or 790% of revenue, for fiscal 2007. The year-over-year decrease primarily reflects a reduction in advertising expense, amortization of deferred development costs and interest on convertible loans. Total expenses for the first half of 2008 were $3.5 million, compared to $3.4 million for the prior year.
EBITDA was $(1.1) million for Q2 fiscal 2008, compared to $(1.1) million in fiscal 2007. EBITDA for Canadian operations was $(0.05) million, compared to $(0.3) million in fiscal 2007, and for the U.K., Q2 EBITDA was $(0.8) million, in line with $(0.8) million in fiscal 2007. During the quarter, the Company's year-over-year improvements in revenue were offset by continued investment in its operations and further enhancements to its product and service offerings. EBITDA for the first half of fiscal 2008 was $(2.2) million, compared to $(2.1) for the first half of fiscal 2007.
For Q2, net loss was $1.2 million, or $(0.02) per share, compared to $1.9 million, or $(0.10) per share, in Q2 of fiscal 2007. Operating loss from Canadian operations was $0.1 million, compared to a loss of $0.4 million for Q2 fiscal 2007. For its U.K. operations, OneMove's operating loss for the quarter was $0.8 million, compared to a loss of $1.0 million the prior year. Net loss for the first half of fiscal 2008 was $(2.4) million compared to $(3.1) million for the prior year.
Cash and cash equivalents were $1.5 million at December 31, 2007. In addition, the Company had working capital of $0.8 million at December 31, 2007, compared to $3.0 million at June 30, 2007.
Subsequent Events
On February 13, 2008, OneMove entered into a binding Memorandum of Understanding for the sale of its U.K.-based wholly owned subsidiary, OneMove Limited, to Neil Patel, CEO, OneMove Limited. Under the terms of the agreement, Mr. Patel will return to treasury all 5.6 million of his currently held shares in OneMove that were issued to him as consideration for the original purchase of OneMove Limited. OneMove Limited will issue a debenture to OneMove for approximately (pnds stlg)1.3 million, to be paid out over a term of 10 years. OneMove will renounce ownership of OneMove Limited, returning all shares held, and provide (pnds stlg)175,000 in funding, 50% of which OneMove Limited will repay by way of the debenture. In addition, the representatives for each company will step down from the other company's Board of Directors, and the companies will enter into a brand sharing and a software royalty license agreement, the terms of which will be finalized upon closing. The sale is expected to close on or before February 28, 2008.
Full financial statements and MD&A for OneMove will be available at www.onemovetech.com and 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) the largest conveyance platform 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.
December 31, June 30, 2007 2007 CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited)
ASSETS
Current Cash and cash equivalents $ 1,457,016 $ 3,877,897 Receivables 188,954 267,386 Government assistance receivable 6,727 98,474 Prepaid expenses and deposits 78,435 76,010
1,731,132 4,319,767 Equipment 831,802 843,231 Intangible asset 5,400 10,800 Long term deposits 289,538 299,434 $ 2,857,872 $ 5,473,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Accounts payable and accrued liabilities $ 701,115 $ 877,828 Deferred income 11,335 22,867 Current portion of loans payable 169,828 434,555 Current portion of capital lease obligations 64,133 33,528 946,411 1,368,778 Loans payable 262,487 312,652 Capital lease obligations 118,600 72,882 1,327,498 1,754,312
Shareholders' equity Capital stock 18,690,662 18,550,451 Contributed surplus 1,649,939 1,607,344 Deficit (18,810,227) (16,438,875) 1,530,374 3,718,920 $ 2,857,872 $ 5,473,232
"Martin Johnson" Director "Stuart Bonner" Director
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND Three months ended Six months ended DEFICIT December 31, December 31, (Unaudited) 2007 2006 2007 2006 REVENUES $ 486,287 $ 239,583 $ 984,166 $ 457,193
EXPENSES Advertising 174,491 211,751 277,055 372,601 Amortization of deferred development costs - 62,946 - 125,891 Amortization of equipment 103,101 148,792 195,806 176,766 Amortization of intangible asset 2,700 2,403 5,400 5,400 Commissions and fees 171,064 58,442 332,895 110,193 Consulting fees 22,591 11,160 22,591 24,140 Insurance 18,009 11,555 32,404 26,959 Interest and bank charges 6,957 6,762 13,670 20,868 Interest on convertible loans - 12,860 - 67,103 Interest on loans 16,683 81,162 30,356 116,006 Investor relations and filing fees 53,072 23,544 101,294 28,641 Office and general 95,902 49,062 183,487 113,879 Professional fees 94,132 47,897 171,124 77,299 Rent and utilities 81,024 66,868 161,420 133,837 Stock-based compensation 11,925 204,561 42,595 259,503 Salaries and wages 746,611 666,947 1,543,496 1,274,329 Telephone 39,851 98,482 94,234 177,851 Travel 119,031 127,606 242,541 263,140 Web site planning and design - - 10,000 - 1,757,144 1,892,800 3,460,368 3,374,406 Loss before other items (1,270,857) (1,653,217) (2,476,202) (2,917,213) OTHER ITEMS Other income 20,661 7,992 51,685 13,827 Dividends on preferred shares - (6,000) - (12,000) Foreign exchange gain (loss) 24,528 (254,305) 53,165 (246,519) Loss on disposal of assets - (31,633) - (31,633) 45,189 (283,946) 104,850 (276,325) Net loss for the period before non-controlling interest (1,225,668) (1,937,163) (2,371,352) (3,193,538)
Non-controlling interest - - - 69,493
Net loss for the period (1,225,668) (1,937,163) (2,371,352) (3,124,045) Deficit, beginning of period (17,584,559) (9,417,266) (16,438,875) (8,230,384)
Deficit, end of period $(18,810,227) $(11,354,429) $(18,810,227) $(11,354,429) Net loss per common share Basic $ (0.02) $ (0.10) $ (0.05) $ (0.21) Fully diluted $ (0.02) $ (0.10) $ (0.05) $ (0.21)
Weighted average number of common shares Basic 49,977,687 19,531,250 49,940,312 14,885,510 Fully diluted 49,977,687 19,531,250 49,940,312 14,885,510
ONEMOVE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF Three months ended Six months ended CASH FLOW December 31, December 31, (Unaudited) 2007 2006 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period $ (1,225,668) $ (1,937,163) $ (2,371,352) $ (3,124,045) Items not affecting cash: Amortiza- tion of deferred development costs - 62,946 - 125,891 Amortization of equipment 103,101 148,792 195,806 176,766 Amortization of intangible asset 2,700 2,403 5,400 5,400 Stock-based compensa- tion 11,925 204,561 42,595 259,503 Unrealized foreign exchange (935) - 5,832 - Accrued interest on convertible loans - 12,860 - 67,103 Dividends on preferred shares - 6,000 - 12,000 Non- controlling interest - - - (69,493) Interest on loans - 61,077 - 61,077 Loss on disposal of assets - 31,633 - 31,633
Changes in non- cash working capital (Increase) decrease in receivables 47,482 225,092 78,433 171,243 Decrease in government assistance receivable - 180,185 91,747 390,867 Increase in prepaid expenses and deposits 72,862 (52,260) (2,424) (114,582) Increase (decrease) in accounts payable 112,858 (144,321) (161,712) 245,832 Increase in deferred revenue (6,259) - (11,532) - Net cash used by operating activities (881,934) (1,198,195) (2,127,207) (1,760,805) CASH FLOWS FROM FINANCING ACTIVITIES Loan repayments (72,962) (794,509) (150,529) (904,427) Share issuance costs (1,962) (531,706) (4,589) (531,706) Capital lease payments (12,896) - (20,761) - Long term deposits 3,036 - 1,597 - Convertible loan proceeds - 2,150 - 424,650 Loan proceeds - 168,586 - 853,797 Issuance of shares for cash - 2,122,789 - 2,122,789 Deferred financing fees - - - (50,995) Net cash provided (used) by financing activities (84,784) 967,310 (174,282) 1,914,108 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment (27,354) (11,108) (80,464) (188,584) Long term deposits - - - - Cash received on acquisition of OneMove Tech - 211,829 - 211,829 Net cash used by investing activities (27,354) 200,721 (80,464) 23,245 Effect of foreign exchange on cash and cash equivalents (5,500) - (38,928) -
Change in cash and cash equivalents during the period (999,572) (30,164) (2,420,881) 176,548
Cash and cash equivalents, beginning of period 2,456,588 209,392 3,877,897 2,680 Cash and cash equivalents, end of period $ 1,457,016 $ 179,228 $ 1,457,016 $ 179,228 Cash paid during the period for interest $ 16,683 $ 47,441 $ 30,356 $ 67,785 Cash paid during the period for income taxes $ - $ - $ - $ -
%SEDAR: 00023118E