TORONTO, ON / ACCESSWIRE / May 10, 2022 / Adcore Inc. (the "Company" or "Adcore") (TSX:ADCO) (OTCQX:ADCOF) (FSE:ADQ) (TSX:ADCO-WT), a leading e-commerce advertising management and automation platform to leverage digital marketing in an effortless and accessible way ("Effortless Marketing"), today announced its financial results for the three months ended March 31, 2022.
"During the quarter we successfully executed on our strategy started in the second part of 2021 to achieve improved and sustainable gross margins in the 45%-55% range by focusing on higher margin indirect revenue. We began to see the positive impact of our strategy in Q4 2021 and continued to drive significantly higher gross margins in Q1 2022 from a higher quality revenue mix as well as growing our gross profit. We are encouraged by our progress thus far in fiscal year 2022 and confident this strategy will deliver enhanced profitability over the long term as we continue to grow our business," said Omri Brill, Chief Executive Officer of Adcore.
First Quarter Highlights
- Total revenue for the three months ended March 31, 2022 was CAD$4.7 million compared to CAD$8.6 million for the same period in 2021.
- Gross profit for the three months ended March 31, 2022, was CAD$2.0 million, an increase of 2% compared to the same period in 2021. Gross margin for the three months ended March 31, 2022, was 43% compared to 23% for the same period in 2021, an increase of 87%.
- Operating loss for the three months ended March 31, 2022, was CAD$446 thousand compared to an operating profit of CAD$36 thousand for the same period in 2021.
- Adjusted EBITDA for the three months ended March 31, 2022, was CAD$85 thousand compared to CAD$584 thousand for the same period in 2021, a decrease of 85%.
- Announced 14 new clients across four of its main regions: North America, EMEA, AUNZ and Greater China.
- Renewed an advertising contract with the Israeli Government Advertising Agency for the fifth year at an annual advertising budget of up to CAD$25 million.
- Named to Elite Tier of Microsoft's Advertising Partner Program and Attained Google Premier Partner Status.
* Additional information concerning Adcore's consolidated financial statements and related management's discussion and analysis for the three ended March 31, 2022 can be found below and on the Company's profile at www.sedar.com.
Mr. Brill concluded, "During the quarter we successfully acquired new clients across all our regions and further elevated our partnerships with both Microsoft and Google. With a more diverse, higher margin revenue mix, a laser focus on end markets with attractive long-term growth, and a solid balance sheet, we look forward to driving improved performance as we move through 2022 and beyond."
Conference Call and Webcast Information
Adcore will host a conference call to discuss its first quarter 2022 financial results at 10:00 a.m. ET on Wednesday, May 11, 2022.
To register for the conference call, please click here or visit: https://click.adcore.com/q1-2022-conference-call
The conference call will include a brief statement by management and will focus on answering questions about Adcore's results during the first quarter, which can be sent in advance to invest@adcore.com.
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 that 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 is evaluated periodically and may differ from other companies' methods and therefore may not be comparable to those used by other companies.
The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three months ended March 31, 2022 and 2021. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.
Three months ended March 31, 2022 | Three months ended March 31, 2021 | ||
CAD$ in thousands | |||
Operating profit | (446) | 36 | |
Depreciation and amortization | 299 | 182 | |
Share-based payments | 195 | 276 | |
Offering, listing & global expansion | - | 41 | |
Other non-recurring items | 37 | 49 | |
Total Adjustments | 531 | 548 | |
Adjusted EBITDA | 85 | 584 | |
All amounts are in CAD and are based on Adcore's condensed consolidated interim financial statements for the three months ended March 31, 2022, 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, 2022, and March 31, 2021, 0.79 and 0.79 respectively.
ABOUT ADCORE
Adcore is empowering entrepreneurs, advertisers, and the future of e-commerce through its advertising management and automation platform. By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising and monitoring and analyzing the performance of their advertising budget to ensure maximum Return on Investment. In addition to being named numerous times on Deloitte's Fast 50 Technology list, Adcore is a certified Google Premier Partner, Elite Tier Microsoft Partner, Facebook Partner and TikTok Partner.
Established in 2006, the Company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China.
For more information about Adcore, please visit https://www.adcore.com/investors/ or follow us on LinkedIn
ABOUT AMPHY
Founded in 2021 in the midst of the pandemic, Amphy is the world's most diverse 24/7 live online learning marketplace. With Amphy, learners can choose from over 1,900 classes across 90 categories to grow their passions and skills, expand their children's learning opportunities, and much more. Instructors on the Amphy platform join a vibrant virtual teacher community that promotes and supports their success through enrichment seminars, marketing and advertising, and a suite of tools that allow them to run their classes hassle-free and focus on their students. Amphy students gain access to high-quality, personalized classes accessible from 24/7, as well as join a growing community of lifelong learners.
For more on Amphy please visit - https://www.amphy.com/ or follow us on LinkedIn, Facebook, Instagram and YouTube.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including statements about the Company. 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 Company 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 Company 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.
https://www.adcore.com/investors/
| Martijn van den Bemd, GM North America | U.S. Investor Relations John Nesbett/Jennifer Belodeau IMS Investor Relations |
| Telephone: 647-497-5337 | Telephone: 203-972-9200 |
| Email: martijn@adcore.com | Email:adcore@imsinvestorrelations.com |
ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| March 31, 2022 | December 31, 2021 | |||||||
| CAD $ in thousands | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 11,145 | 13,862 | ||||||
Trade accounts receivable, net | 2,800 | 3,650 | ||||||
Other accounts receivable | 786 | 776 | ||||||
Total current assets | 14,731 | 18,288 | ||||||
NON-CURRENT ASSETS: | ||||||||
Long term deposit | 37 | 36 | ||||||
Property, plant and equipment, net | 816 | 867 | ||||||
Intangible assets, net | 2,732 | 2,479 | ||||||
Total non-current assets | 3,585 | 3,382 | ||||||
Total assets | 18,316 | 21,670 | ||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | 1,668 | 4,387 | ||||||
Other accounts payable | 893 | 844 | ||||||
Lease liability | 274 | 277 | ||||||
Total current liabilities | 2,835 | 5,508 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Accrued severance pay, net | 22 | 23 | ||||||
Deferred tax liability, net | 327 | 330 | ||||||
Derivative liability - warrants | 38 | 253 | ||||||
Lease liability | 199 | 267 | ||||||
Total non-current liabilities | 586 | 873 | ||||||
SHAREHOLDERS' EQUITY: | ||||||||
Share capital | * | * | ||||||
Additional paid in capital | 13,394 | 12,982 | ||||||
Actuarial reserve | (102 | ) | (100 | ) | ||||
Retained earnings | 1,603 | 2,407 | ||||||
Total Equity | 14,895 | 15,289 | ||||||
TOTAL LIABILITIES AND EQUITY | 18,316 | 21,670 | ||||||
ADCORE INC.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended March 31, | Three months ended March 31, | |||||||
2022 | 2021 | |||||||
CAD $ in thousands | ||||||||
| Revenues | 4,693 | 8,611 | ||||||
| Cost of revenues | 2,666 | 6,616 | ||||||
Gross profit | 2,028 | 1,995 | ||||||
| Research and development expenses | 390 | 449 | ||||||
| Selling ,general and administrative expenses | 2,084 | 1,509 | ||||||
Operating profit (loss) | (446 | ) | 36 | |||||
| Finance expenses | 612 | 691 | ||||||
| Finance income | (219 | ) | (482 | ) | ||||
Loss before taxes on income | (838 | ) | (174 | ) | ||||
| Tax Expenses | - | 153 | ||||||
Net Profit (Loss) | (838 | ) | (327 | ) | ||||
Basic profit per share attributable to shareholders | (0.013 | ) | (0.005 | ) | ||||
Diluted profit per share attributable to shareholders | (0.013 | ) | (0.005 | ) | ||||
SOURCE: Adcore Inc.
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