Northcore Technologies Inc. (TSX:NTI)(OTCBB:NTLNF), a global
provider of asset management and social commerce solutions,
announced today its interim financial results for the third quarter
ended September 30, 2012. All figures are reported in Canadian
dollars.
We reported consolidated revenues of $387,000 for the third
quarter, representing an increase of 91 percent over the $203,000
reported in the same quarter of 2011. We also reported year-to-date
consolidated revenues of $1,032,000, an increase of 80 percent over
the $573,000 reported for the same period of 2011. The growth in
revenues was attributed primarily to higher social commerce
services revenues as a result of the acquisition of Envision Online
Media Inc.
Revenues are comprised of application hosting activities
provided to customers, the sale of software licenses, and the
delivery of technology services, such as application and website
development, software customization, content management and social
commerce solutions.
We reported an Operational EBITDA loss for the third quarter of
$416,000, an increase of eight percent over the Operational EBITDA
loss of $386,000 reported for the third quarter of 2011. We
reported year-to-date Operational EBITDA loss of $1,147,000, a
slight improvement of four percent from the operational EBITDA loss
of $1,198,000 reported for the same period of 2011. The increase in
revenues contributed to the improvement in Operational EBITDA loss
during the period.
Operational EBITDA is defined as the loss before interest,
taxes, depreciation, stock-based compensation, non-cash and
non-recurring items. The Company considers Operational EBITDA to be
a meaningful performance measure as it provides an approximation of
operating cash flows.
We reported a loss for the third quarter of $535,000 or $0.002
per share, basic and diluted, an improvement of 35 percent from the
loss of $820,000 or $0.004, basic and diluted, for the same period
of 2011. We also reported year-to-date loss of $1,826,000 or $0.008
per share, basic and diluted, an improvement of 44 percent from the
loss of $3,274,000 or $0.017 per share, basic and diluted, reported
in the same period of 2011.
As at September 30, 2012, Northcore held cash and short-term
investments of $308,000 and accounts receivable of $211,000.
Operating Highlights
We accomplished the following activities in the period:
-- Implemented a new platform instance for a key enterprise client and one
of the five largest food and beverage companies in North America;
-- Delivered a number of customer web platforms and content management
solutions through Envision Online Media;
-- Hosted a series of commercial auction events for a major strategic
partner; and
-- Signed new vendor partnerships to expand sales of Kuklamoo.com, a family
Web destination and curated sale site.
Outlook
"Our focus continues to be on building shareholder value through
our enterprise and social commerce offerings," said Amit Monga, CEO
of Northcore Technologies. "We are working closely with the
Envision team to bid on larger projects and increase our presence
in Ottawa. In the coming months, we plan to launch platforms
exploiting our proprietary intellectual property for variety of
industry verticals."
About Northcore Technologies Inc.
Northcore Technologies provides enterprise level software
products and services that enable its customers to purchase, manage
and dispose of capital equipment. Utilizing award-winning,
multi-patented technology, as well as powerful, holistic Social
Commerce tools, Northcore's solutions support customers throughout
the entire asset lifecycle.
Northcore's portfolio companies include Envision Online Media
Inc., a specialist in the delivery of content management solutions
and Kuklamoo, a family information web destination and national
daily deal site targeting families with kids.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint
business venture with GE and holds a substantial intellectual
property portfolio.
For more information, visit www.northcore.com.
This news release may include comments that do not refer
strictly to historical results or actions and may be deemed to be
forward-looking within the meaning of the Safe Harbor provisions of
the U.S. federal securities laws. These include, among others,
statements about expectations of future revenues, cash flows, and
cash requirements. Forward-looking statements are subject to risks
and uncertainties that may cause Northcore's results to differ
materially from expectations. These risks include the Company's
ability to raise additional funding, develop its
business-to-business sales and operations, develop appropriate
strategic alliances and successful development and implementation
of technology, acceptance of the Company's products and services,
competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time
to time, including those risks disclosed in the Company's Form 20-F
filed with the Securities and Exchange Commission. Accordingly,
there is no certainty that the Company's plans will be achieved.
Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the
Company's documents filed from time to time with the Toronto Stock
Exchange, on SEDAR (the System for Electronic Document Analysis and
Retrieval at www.sedar.com) and the US Securities and Exchange
Commission. This news release shall not constitute an offer to sell
or the solicitation of an offer to buy securities of the Company in
any jurisdiction.
Northcore Technologies Inc.
Condensed Interim Consolidated Statements of Financial Position
As at September 30, 2012 and December 31, 2011
(Expressed in thousands of Canadian dollars)
(IFRS, Unaudited)
----------------------------------------------------------------------------
------------------------------
September 30, December 31,
2012 2011
------------------------------
ASSETS
CURRENT
Cash $ 267 $ 1,760
Restricted cash 500 -
Short-term investments 41 -
Accounts receivable 211 187
Deposits and prepaid expenses 76 40
------------------------------
1,095 1,987
INVESTMENT IN ASSOCIATES 199 24
CAPITAL ASSETS 93 91
INTANGIBLE ASSETS 912 807
UNALLOCATED PURCHASE PRICE 1,191 -
------------------------------
TOTAL ASSETS $ 3,490 $ 2,909
------------------------------
------------------------------
LIABILITIES
CURRENT
Accounts payable $ 327 $ 239
Accrued liabilities 192 173
Deferred revenue 122 3
Current portion of contingent consideration 71 -
Promissory note 500 -
------------------------------
1,212 415
CONTINGENT CONSIDERATION 63 -
------------------------------
TOTAL LIABILITIES 1,275 415
TOTAL SHAREHOLDERS' EQUITY 2,215 2,494
------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,490 $ 2,909
------------------------------
------------------------------
Northcore Technologies Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive
Loss
For the Three and Nine Months Periods Ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars, except per share amounts)
(IFRS, Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
----------------------------------------------------
Revenues $ 387 $ 203 $ 1,032 $ 573
----------------------------------------------------
Income from GE Asset
Manager, LLC 18 18 55 54
----------------------------------------------------
Operating expenses:
General and
administrative 429 351 1,293 1,308
Customer service and
technology 321 181 818 543
Sales and marketing 71 75 175 209
Stock-based
compensation 107 372 590 1,625
Depreciation 12 8 37 20
----------------------------------------------------
Total operating expenses 940 987 2,913 3,705
----------------------------------------------------
Loss before the
undernoted (535) (766) (1,826) (3,078)
----------------------------------------------------
Finance costs:
Interest on notes
payable and secured
subordinated notes - 20 - 93
Accretion of secured
subordinated notes - 34 - 103
----------------------------------------------------
Total finance costs - 54 - 196
----------------------------------------------------
Loss and comprehensive
loss for the period $ (535) $ (820) $ (1,826) $ (3,274)
----------------------------------------------------
----------------------------------------------------
Loss per share, basic
and diluted $ (0.002) $ (0.004) $ (0.008) $ (0.017)
----------------------------------------------------
----------------------------------------------------
Weighted average number
of shares outstanding,
basic and diluted
(000's) 234,625 203,888 232,073 190,265
----------------------------------------------------
----------------------------------------------------
Northcore Technologies Inc.
Reconciliation of Loss to Operational EBITDA
For the Three and Nine Month Periods Ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars)
(IFRS, Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
----------------------------------------------------
Loss for the period, as
per above $ (535) $ (820) $ (1,826) $ (3,274)
----------------------------------------------------
Reconciling items:
Stock-based
compensation 107 372 590 1,625
Depreciation 12 8 37 20
Interest expense - 54 - 196
Non-recurring
professional fees
(iii) - - 52 235
----------------------------------------------------
Operational EBITDA $ (416) $ (386) $ (1,147) $ (1,198)
----------------------------------------------------
----------------------------------------------------
(iii) Included in non-recurring professional fees for 2012 were
acquisition related costs in connection with the acquisition of
Envision and Kuklamoo. Non-recurring professional fees in 2011 were
in connection with the recruitment of new senior management and
Board members.
Contacts: Northcore Technologies Inc. Investor Relations (416)
640-0400 ext. 273 (416) 640-0412
(FAX)InvestorRelations@northcore.com www.northcore.com