Kuuhubb Reports Fiscal Q1 Financial Results
November 29, 2018
Adjusted EBITDA near break-even for the quarter
Toronto, Canada – Kuuhubb Inc. (TSX- V: KUU), a technology company focused on acquiring, developing and distributing lifestyle and mobile game applications for the female audience, has reported its unaudited financial results for the three month period ended September 30, 2018. The Company’s unaudited interim consolidated financial statements as at and for the three months ended September 30, 2018 and related management’s discussion and analysis can be found on the Company's SEDAR profile at www.sedar.com. References in this release to “US$” are to United States dollars. The Company’s financial year end is June 30.
Highlights for the Fiscal First Quarter Ended September 30, 2018 (unaudited):
The non-IFRS adjusted EBITDA during the three-month period ended September 30, 2018 was negative US$215,517, making this period’s adjusted EBITDA a near break-even quarter. The non-IFRS adjusted EBITDA was calculated by adjusting the Company’s net loss of US$2,291,147 for the three-month period ended September 30, 2018 by subtracting share-based compensation expense of US$469,630, depreciation and amortization of US$1,536,634 and interest expense of US$95,466 and by adding foreign exchange gain of US$26,100.
Revenue for the three-month period ended September 30, 2018 was US$4.1 million, a year-over-year increase of 46% compared to US$2.8 million for the three-month period ended September 30, 2017, and a quarter-over-quarter decrease of 16% compared to US$4.9 million for the three-month period ended June 30, 2018. This revenue was generated from sales of the Recolor app, the in-application sale of virtual goods from the My Hospital game and in-application ad revenue.
The Company had shareholders’ equity of US$8,076,225 as at September 30, 2018, compared to shareholders’ equity of US$9,708,134 as at June 30, 2018.
Jouni Keränen, CEO of the Company, stated: “While we had hoped for a much better start to the new fiscal year, we believe that the operational enhancements and product improvements we made in the first quarter and continue to make in the second quarter will produce material results in 2019. The lower revenue numbers were primarily attributed to specific one-time disruptions on a distribution platform earlier in the year and will not be recurring. Despite the setback, we continue to see significant growth opportunities in the coloring segment and are focused on maximizing the full potential of the Recolor and Recolor By Numbers products. During 2019 we plan to also create a more diversified product portfolio with the launch of both third-party and internally developed new products. With the previously announced financing (see the Company’s November 13, 2018 press release) expected to close soon and other non-dilutive financings under discussion, Kuuhubb is well positioned for strong growth in 2019.”
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.