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TORONTO, Nov. 27 /CNW/ - ZIPLOCAL INC. (ZIP-TSX Venture Exchange) ("ZipLocal" or the "Company"), a leader in local online search technology, today released its financial results for the three months ended September 30, 2008.
During the first quarter the Company entered into arrangements to obtain up to an additional $750,000 in secured debt financing from members of the J.L. Albright Ventures group of funds. In addition, the Company announced a 45% workforce reduction. The Company expects the cost reductions to yield annualized savings of approximately $1,300,000. The cost of the restructuring is estimated to be approximately $100,000 and will be recorded in the second quarter of fiscal 2009. In addition, the Company continued to enhance site infrastructure and speed to drive increased traffic.
Net revenues for the three months ended September 30, 2008 were $760,000, representing a decrease of $451,000 (or 37%) from $1,211,000 in the same quarter of fiscal 2008. Total expenses for the three months ended September 30, 2008 were $1,709,000, representing a decrease of $741,000 (or 30%) from $2,450,000 in the same quarter of fiscal 2008. Adjusted EBITDA loss for the three month period ended September 30, 2008 was $758,000 representing an improvement of $191,000 from an adjusted EBITDA loss of $949,000 for the comparable period in the prior year. Net loss for the three months ended September 30, 2008 was $949,000 (or $0.01 per share), compared to a loss of $1,239,000 (or $0.02 per share) for the same period in fiscal 2008.
The complete financial results and management's discussion and analysis of the results for the months ended September 30, 2008 are available through the System of Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. All currencies are stated in Canadian dollars.
Adjusted EBITDA
ZipLocal uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adding back to net loss interest, amortization and stock-based compensation. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP.
About ZipLocal Inc.
ZipLocal operates a Canadian online directory that provides a rich, user-defined local search experience. ZipLocal provides relevant search results from Canadian and US businesses with maps and functionality for users to review, rate and tag business listings. ZipLocal is focused on creating the most comprehensive and engaging search experience at the neighbourhood and city-wide level.
FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this news release. Actual results could differ materially from those anticipated in the statements due to risks and uncertainties, which affect the Company's business and operations. Reference should be made to the Company's continuous disclosure documents filed from time to time with Canadian securities regulatory authorities for a detailed description of such risks and uncertainties. The Company takes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.
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%SEDAR: 00022621E
For further information: Stephen McDonald, ZipLocal Inc., (416) 987-2135, Investor_relations@ziplocal.com
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