ID Watchdog Announces Fourth Quarter and Full Year 2015 Results and Updated Guidance for First Quarter 2016

DENVER, April 7, 2016 /PRNewswire/ --

• Employee Benefit revenues increased 136.9%
• Total revenues increased 50.1%
• Gross profit increased 41.4%

ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced its final results for the fourth quarter and year ended December 31, 2015. All amounts are in U.S. dollars.

4th Quarter 2015 Highlights:

• Revenue: Revenue totaled $1,424,021 for the fourth quarter of 2015, an increase of $475,185, or 50.1%, from the fourth quarter of 2014.  During the fourth quarter of 2015, revenue from our employee benefit channel contributed $622,315 to the total increase in revenues, which was partially offset by a decrease in the other revenue channels.
• Gross Profit: Gross profit increased by $287,556, or 41.4%, from $694,130 during the fourth quarter of 2014 to $981,686 during the fourth quarter of 2015.  The gross margin rates for the fourth quarter of 2015 and 2014 were 68.9% and 73.2%, respectively.
• Adjusted EBITDA:  For the fourth quarter of 2015, Adjusted EBITDA decreased by $74,677 to $111,929 as compared with $186,606 for the similar period in 2014.
• Cash Balances: Cash and cash equivalents as of December 31, 2015, totaled $1,069,289, an increase of $182,813 from our cash balances at December 31, 2014.

Full Year 2015 Highlights:

• Revenue: Total revenue increased $1,898,087, or 54.7%, from $3,469,468 for the year ended December 31, 2014 to $5,367,555 for the year ended December 31, 2015. Revenue from our employee benefits channel contributed $2,243,931 to the total increase in revenues, which was partially offset by a decrease in the other revenue channels.
• Gross Profit: Gross profit increased by $1,390,558, or 56.1%, from $2,480,432 in 2014 to $3,870,990 in 2015.  The gross margin rates for the 2015 and 2014 were 72.1% and 71.5%, respectively.
• Adjusted EBITDA:  For 2015, Adjusted EBITDA improved by $180,753 to $644,508 as compared with $463,755 in 2014.  The improvement in EBITDA is due primarily to a significant improvement in gross margin as noted above.

First Quarter 2016 Updated Guidance

ID Watchdog CEO, Michael Greene, stated, "We are pleased to close out a very successful 2015, a year in which our Employee Benefit Channel revenues grew by over 137%, we delivered record Adjusted EBITDA of $644,508 and we are well positioned for continued strong growth in 2016.  The Employee Benefit Channel is one with a very high level of recurring revenue and a very low level of customer churn or attrition.  Given these revenue characteristics, we believe we will achieve record quarterly revenues throughout 2016 and exceed $10 million in revenue for calendar 2016."

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, gain on disposition of assets and gain (loss) 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 (loss) 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
[email protected] 
www.idwatchdog.com

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SOURCE ID Watchdog, Inc.

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