ID Watchdog Announces Results for First Quarter 2017

DENVER, May 2, 2017 /PRNewswire/ --  

• Employee Benefit revenues increased 41.7%
• Total revenues increased 37.4%
• Gross profit increased 30.6%

ID Watchdog, Inc. IDW IDWAF ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced its results for the first quarter ended March 31, 2017. All amounts are in U.S. dollars.

First Quarter 2017 Highlights:

• Revenue: Total revenue and employee benefit channel revenue totaled $3,535,300 and $3,162,588 for the first quarter of 2017, increases of 37.4% and 41.7%, respectively, over the first quarter of 2016. 
• Gross Profit: Gross profit increased by 584,084, or 30.6%, from $1,906,856 during the first quarter of 2016 to $2,490,943 during the first quarter of 2017.  The gross margin rates for the first quarter of 2017 and 2016 were 70.5% and 74.1%, respectively.
• Adjusted EBITDA:  For the first quarter of 2017, Adjusted EBITDA decreased by $119,043 to $212,760 as compared with $331,803 for the similar period in 2016. Adjusted EBITDA margins for the first quarter of 2017 and 2016 were 6.0% and 12.9%, respectively.
• Cash Balance: Cash totaled $1,540,681 as of March 31, 2017.

Second Quarter 2017 Guidance

ID Watchdog CEO, Michael Greene, stated, "We delivered a strong start to 2017 and for the second quarter of 2017, we are anticipating sequential Employee Benefit Channel revenue growth ranging from 2.8% - 5.9% and continued increases in our direct website subscriptions, which should drive sequential total revenue growth of 1.8% - 4.7%."

Mr. Greene, continued, "Our gross margin percentage decreased by 3.6% to 70.4% in the first quarter of 2017 as compared to the similar period in 2016 and we anticipate that our gross margin will improve modestly in the second quarter of 2017 to between 71.5% and 72.3%, as we continue to enhance our service offerings in order to remain competitive in the marketplace.   Also, note that our operating income and Adjusted EBITDA margins generally are at their lowest in the first quarter of each year due to increased costs associated with securing, onboarding and registering the significant number of new customers we typically add each January.  We expect these margins to expand as we move through the year." 

Mr. Greene concluded, "In 2017, we are accelerating enhancements to our service offerings, significantly expanding our sales force and increasing our marketing efforts in order to drive top-line growth and generate long-term value for our shareholders."

 

 

 

 

 

 

About Non-IFRS Financial Measure

To supplement the Company's consolidated financial results presented in accordance with International Financial Reporting Standards ("IFRS"), the Company reports "Adjusted EBITDA" (net income (loss) before deducting net interest expense, income taxes, depreciation and amortization, share-based compensation, litigation provision, and gain on warrant liability) and uses this metric to measure the performance of our business.  Adjusted EBITDA is not a performance measure defined under IFRS and is not considered an alternative to income from operations or net earnings in the context of measuring the Company's performance.  Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable with similar measures used by other publicly traded companies.  Adjusted EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, income taxes, interest payments, capital expenditures, debt principal reductions and other sources and uses of cash, and is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with IFRS.

Financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent quarterly reports and our annual report. These documents are available online at www.sedar.com and in the "Company Overview" section of our website at www.IDWatchdog.com.

About ID Watchdog, Inc.

ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.

Forward-Looking Statement

This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. Such forward-looking statements include, but are not limited to, statements about: future revenue and the growth of revenue including growth from our Employee Benefit Channel; anticipated expenditures; our business strategies; our ability to grow in both the near and long term and the funding of our growth opportunities; the plans, objectives, expectations and intentions of the company regarding revenue growth; the Company's financial position including liquidity and financial capacity, and the future development of the company's business.

The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance Company's filings with Canadian regulators at www.sedar.com. Furthermore, the forward-looking statements and financial outlook contained in this release are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements and financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Company Contact:
Jay B. Lewis
Chief Financial Officer
ID Watchdog, Inc.
303-339-8099
InvestorRelations@idwatchdog.com
www.idwatchdog.com

 

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SOURCE ID Watchdog, Inc.