Increased Revenue From Both the Ticketing Operations and the New Way Sales Acquisition Result in 725% Increase in Revenue
CALGARY, ALBERTA-- Nov 29, 2007 -- RepeatSeat Ltd. (CDNX:RPS.V ) is pleased to announce the Q3 2007 results on sales of $2,833,898; positive cash flow from operating activities of $7,160 in Q3 2007, a significant increase compared to a negative cash flow of ($591,192) in Q3 2006. EBITDA in Q3 2007 was a positive $358,780 compared to an EBITDA loss of ($634,269) for the corresponding period in 2006.
Commenting on the financial results, RepeatSeat President and CEO George Davidson said, "Reaching positive EBITDA and positive cash flow is a significant milestone for RepeatSeat, this puts the Company on solid footing to accelerate future growth and maintain sustainable profitability. Over the past seven quarters we have consistently delivered improved results along with revenue growth. I am very pleased with these results." Davidson added "It is important to note that the $2.8 million in revenue for the quarter reflects both an 85.5% growth in our core ticketing operations along with the increased revenue from our acquisition of New Way Sales. Going forward we expect to achieve additional revenues and substantial cost savings by instituting the planned integration between the current movie ticketing operations and the operations of the newly acquired New Way Sales."
Consolidated revenues in the first nine months of 2007 accumulated to $4,596,665, an increase of 337% as compared to $1,051,812 in the first nine months of 2006. Revenues from core ticketing operations in the quarter increased to $636,743, an 85.5% increase from Q3 2006 ticketing revenue of $343,300. Net loss for the period, which includes a non-cash charge of $726,414 resulting from accelerated debenture accretion charges, was a loss of $1,409,172.
As previously disclosed, the Corporation is in technical breach of certain of its debt covenants with respect to its convertible debentures; however, the Corporation is currently in discussions with these lenders regarding resolution of the breach.
As used herein, "EBITDA" refers to earnings before amortization of property and equipment, amortization of intangible assets, interest including interest on long-term debt and finance charges, stock-based compensation, loss on sale of equipment and unrealized foreign exchange gains or losses. The Company cautions that EBITDA is not a recognized measure under GAAP and that measures adjusted to a basis other than GAAP do not have a standardized meaning and are unlikely to be comparable to similar measures used by other companies. EBITDA is presented as a supplemental measure to net income (loss) as management believes it provides useful information regarding operating performance and is commonly used by investors, financial analysts and lenders to value the Company's performance and assess the Company's ability to service debt. The items required to reconcile between EBITDA and net income (loss) are amortization of property and equipment, amortization of intangible assets, interest including interest on long-term debt and finance charges, stock- based compensation, loss on sale of equipment and unrealized foreign exchange gains or losses.
RepeatSeat's Consolidated Financial Statements and Management's Discussion and Analysis are available on SEDAR at www.sedar.com.
About RepeatSeat:
Headquartered in Calgary, with offices in Toronto and Denver, RepeatSeat Ltd. offers interactive entertainment solutions through industry leading data, ticketing and mobile applications to the live event, movie, ski, tour and excursion industries throughout North America and the Caribbean. RepeatSeat is also a Canadian leader in the video arcade industry and is integrating this entertainment niche into its fully interactive data and mobile environment across Canada.
For RepeatSeat investor relations needs, investors are asked to visit the RepeatSeat Investor Relations website at www.agoracom.com/ir/repeatseat where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to rps@agoracom.com where they can also request their addition to the investor e-mail list to receive all future press releases and updates in real time.
Contact:
RepeatSeat Ltd.
Dan Gerritsen
Vice President Finance and Chief Financial Officer
(403) 441-1804
Email: dan.gerritsen@repeatseat.com
Website: http://www.repeatseat.com
AGORACOM Investor Relations
Email: RPS@Agoracom.com
Website: http://www.agoracom.com/IR/RepeatSeat
