FPN Announces Annual Financial Results and Stock Option Grants
Toronto, Ont. (October 27, 2006) – Fifty-Plus.Net International Inc. today announced the financial results for its year ended June 30, 2006.
Net income for the year was $266,682 compared to net income of $162,427 in 2005. In line with the previously released sales estimate, the Company recorded its fourth consecutive quarter of revenue growth, with sales of $1,006,938 for the year, which exceeded 2005 revenues of $844,845 by 19%. This largely resulted from the introduction of a new sales and marketing team in the latter part of the fiscal year and increased emphasis on driving more sales from display advertisers.
Expenses for the year were $740,256 compared to $682,418 for last year. This increase is primarily attributable to increased wages and benefits for new personnel hired in the second quarter to redesign the website and to increase revenues and profitability going forward, offset in part by the forgiveness of accrued management and directors fees of $204,694 during the third quarter.
This past year the Company has devoted much of its resources to improvements to its content management system and has replaced all of the legacy website as well as adding a numbr of e-commerce initiatives. The Company has also revamped all of its newsletter offerings and increased its list populations. In addition after the year end, the company introduced Blogs as a replacement to the previous forum technology.
As of June 30, 2006 the Company had cash on hand of $88,208 (June 30, 2005 – $19,269) and working capital (excluding the current portion of deferred revenue) of $103,931 versus a deficiency of $241,758 on June 30, 2005.
The complete financial statements may be viewed on SEDAR at www.sedar.com.
Fifty-Plus.Net International Inc. also announced the grant, pursuant to its Stock Option Plan, of 1,630,000 incentive stock options effective September 28, 2006. The options expire in five years and have an exercise price of $0.10 per share.
About Fifty-Plus.Net International Inc.
Fifty-Plus.Net International Inc. owns www.50Plus.com, the leading Canadian Web Portal providing unique content, community and commerce for people over the age of 50. The Company manages the online home of CARP, Canada’s Association for the Fifty-Plus, the country’s largest advocacy group with more than 400,000 members and of CARP Magazine, Canada’s magazine for people over 50, with readership of over 840,000. Fifty-Plus.net International Inc. also manages a number of other websites catering to the 50-Plus demographic, including www.CARP.ca, www.carptravel.com, www.50PlusBestEmployers.com, www.seniors.ca, www.50PlusRelationships.com, and www.drivewise.ca.
Cautionary Statement on Forward-Looking Statements
Certain statements made in this report are ‘forward-looking statements’ which may include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words ‘believe’, ‘anticipate’, ‘expect’, ‘estimate’, ‘project’, ‘will be’, ‘will continue’, ‘will likely result’ or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in filings by Fifty-Plus.Net International Inc. with provincial securities commissions. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, the following:
- the risks inherent in the operation of Internet media properties generally;
- the limited cash flow and the Corporation’s dependency on a few large customers;
- the competition in the Internet and media industry for the baby boom generation’s business;
- the risks associated with governmental regulation of internet businesses;
- the results of legal claims made by or against the Corporation.
- the risk of managing the current revenue growth rate;
- the dependence of the business on the continuing operation of its computer systems; and
- the dependence on key personnel.
Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
FOR MORE INFORMATION, CONTACT:
Eric L. Vengroff
Fifty-Plus.Net International Inc.
(416) 363-7063 ext. 244