VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2012) - Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:DSS)(OTCQX:DTSRF) announced today its unaudited financial results for the three and nine month period ended September 30, 2012.
- Pre-orders of the new TOURAcademy® Home Edition began in September 2012 through the Company's dedicated website www.touracademydvds.com and order fulfillment and shipment began on October 5, 2012.
- GSP RUSHFIT® continues to be the #1 rated consumer product in the Exercise and Fitness category on Amazon.com.
- Internet sales of GSP RUSHFIT remain strong through the Company's website and the Amazon websites in Canada, US and UK achieving a 40% growth rate in internet sales year over year for three months ended September 30th.
- The strong performance on Amazon.com saw GSP RUSHFIT consistently rated in the Top 10 for sales and rated as high as #6 this quarter in their top 100 exercise videos.
- The Company announced intentions to complete a non-brokered private placement of up to CAD $500,000 in funds and on October 12, 2012 the Company successfully closed the first tranche of the private placement having raised gross proceeds of CAD $500,500.
- The Company secured a CAD $500,000 revolving loan facility. The Loan Facility is secured by the assets of the Company.
Financial Statements' Currency Presentation
In recognition of the functional currency, United States dollars ("USD"), in which the Company earns its income, effective this quarter all financial information will be presented in USD unless otherwise advised. As a result the Company's prior fiscal year interim and annual financial statements as filed may not be comparable to results filed in the current year.
The total revenue for the quarter of $324,877 (2011 - $656,388) continued to be driven primarily by the Company's flagship product GSP RUSHFIT an 8-week home-based DVD workout program starring MMA World Welterweight Champion Georges St-Pierre.
Mr. Jeffrey Sharpe, President and CEO of DSS stated, "We are pleased to have finalized the new TOURAcademy Home Edition program and are excited about taking our second globally branded product to market over Q4. In addition, with the start of the peak season for the sale of fitness media products like GSP RUSHFIT, and GSP having recently come back from injury securing his world welterweight championship on November 17, 2012, we anticipate that the combination of the two will have a very positive impact on our overall sell through this year."
During the three months ending September 30, 2012, operating expenses were $711,944 (2011 - $772,359)
Net loss for the quarter ended September 30, 2012 was $387,067 (2011 - $115,971).
Selected Financial Highlights
|Selected Period Information|
| || ||Three months ended|
Sept 30, 2012
| ||Three months ended|
Sept 30, 2011
|Currency Translation Adj.||$||4,548||$||(11,181)|
|Weighted average number of shares outstanding|| ||53,170,643|| ||45,369,295|
|Net loss per share (1)||$||(0.007)||$||(0.003)|
|(1) Basic and fully diluted net loss |
About Digital Shelf Space Corp.
Digital Shelf Space is an independent creator, producer and distributor of home entertainment content targeted at the fitness and sports instruction market. Digital Shelf Space's overall content partnership strategy is to align itself with world-class, global brand partners. For more information visit www.digitalshelfspace.com and to view our current projects with Georges St-Pierre and the TOURAcademy®, visit www.gsprushfit.com and www.touracademydvds.com.
ON BEHALF OF THE BOARD
Jeffrey Sharpe, President & CEO
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Company's outlook of planned activities; the commencement of online pre-orders of TOURAcademy® Home Edition comprehensive 8-week golf instruction program and timing of order fulfillment; steady growth of sales, and continued receipt of orders of the Company's products through Amazon websites; increased sales for the fitness industry in the fourth quarter of the year; increased revenues as a result of advertising dollars spent; the potential growth of GSP RUSHFIT; current strategies and ongoing adjustments to these strategies providing the potential for revenue opportunities for the upcoming holiday season; the development of marketing strategies; increased market share in the US and internationally; the launch of a new direct to home DVD series or product line featuring a celebrity, athlete, or global brand; the restatement of the Company's financial reporting into United States dollars; inventories stocked by the Company's distribution partner, Northern, and wholesale demand for the Company's product; GSP RUSHFIT royalty payments; anticipated sales of TOURAcademy® Home Edition comprehensive 8-week golf instruction program; additional content production deals; future additional capital from investors to fund marketing, distribution and content production; revenue growth in the next fiscal period; plans for increased retail distribution; international expansion; the opening of new markets; projections for further growth continuing to meet and exceed earlier forecasts; new television and internet marketing campaigns for the Company's products; expanded sales into overseas markets; expected growth of retail sales of the Company's products; the Company's strategy, future operations, prospects and plans of management; the Company's expectations with respect to existing and future agreements with third parties; estimates of the length of time the Company's business will be funded by anticipated financial resources; and anticipated results and benefits of consumer use of celebrity fitness products.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the timing and quantum of revenue generated through sales of the Company's products revenues will continue at current levels and increase; the sufficiency of budgeted expenditures in carrying out planned activities; the Company's ability to protect its intellectual property rights and not to infringe on the intellectual property rights of others; the availability and cost of labour and services; expected growth of sales as a result of the Northern partnership and consumer demand; and expected results from the use of celebrity fitness products. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the TOURAcademy® Home Edition comprehensive 8-week golf instruction program may not generate anticipated revenues; Northern may not need to replenish inventories of the Company's product in the near or mid-term, leading to diminished revenues; GSP RUSHFIT royalty payments will lead to diminished revenues; anticipated sales and/or volumes of sales for GSP RUSHFIT and TOURAcademy® Home Edition may not be realized; the Company may never conclude an additional content production deal; the Company may never launch a new direct-to-home DVD series or product line featuring a celebrity, athlete, or global brand; the Company may not be able to sustain or increase revenues achieved during the current reporting period; the Company's products may not achieve the brand recognition and increased distribution as currently anticipated; the Company may never expand its distribution channels domestically or internationally; anticipated international expansion may not occur in the anticipate timeframe, or at all; the Company may not adopt successful advertising strategies or marketing methods; the Company may not develop or sell complementary product lines and/or may not achieve sales of such products to existing customers in the quantum anticipated, or at all; the substantial investment of capital required to produce and market video and entertainment productions; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; unpredictability of the commercial success of our programming; difficulties in integrating technological changes and other trends affecting the entertainment industry;
significant competition in the global economic market; the possibility the rate of growth of the market for fitness media will slow; reliance on the health and marketability of celebrity fitness talent in productions owned by the Company; the possibility of competition from other ecommerce and online marketing vendors; the continued strong growth in adoption of digital media; the possibility of new fitness titles from traditional large studios that target the male demographic; large media production companies may move ecommerce operations in-house rather than outsourcing; reliance on production studios continuing to outsource ecommerce operations; reliance on a number of key employees; limited operating history; general market and consumer demand weakness in the traditionally strong fourth quarter may negatively affect the Company's sales and revenues; as a result of the Company's change in presentation from Canadian dollars to United States dollars, the Company's prior fiscal interim and annual financial statements may not be comparable to results filed in the current year; the possibility of claims against the intellectual property rights of the Company; the possibility of infringements upon the intellectual property rights of the Company; the Company may not have sufficiently budgeted for expenditures necessary to carry out planned activities; future operating results are uncertain and likely to fluctuate; the Company may not have the ability to raise additional financing required to carry out its business objectives on commercially acceptable terms, or at all; and volatility of the market price of the Company's shares.
A more complete discussion of the risks and uncertainties facing the Company is disclosed in the Company's Filing Statement dated November 16, 2010 and continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.