ID Watchdog Announces Results for Third Quarter 2015

DENVER, Nov. 16, 2015 /PRNewswire/ --

• Employee Benefit revenues increased 130.2%
• Total revenues increased 55.2%
• Gross profit increased 52.5%

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 results for the 3rd quarter ended September 30, 2015. All amounts are in U.S. dollars.

3rd Quarter 2015 Highlights:

• Revenue: Revenue totaled $1,377,583 for the third quarter of 2015, an increase of $489,898, or 55.2%, from the third quarter of 2014.  Revenue from our Employee Benefit Channel increased $566,642, or 130.2%, from $435,172 for the three months ended September 30, 2014 to $1,001,814 for the three months ended September 30, 2015. 
• Gross Profit: Gross profit increased by $344,540, or 52.5%, from $655,747 during the third quarter of 2014 to $1,000,287 during the third quarter of 2015.  The gross margin rates for the third quarter of 2015 and 2014 were 72.6% and 73.9%, respectively.
• Adjusted EBITDA:  For the third quarter of 2015, adjusted EBITDA improved by $107,831 to $211,150 as compared with $103,319 for the similar period in 2014. The adjusted EBITDA as a percentage of revenues for the third quarter of 2015 and 2014 were 15.3% and 11.6%, respectively.
• Cash Balances: Cash and cash equivalents as of September 30, 2015, totaled $946,364, an increase of $59,888 from our cash balances at December 31, 2014.

ID Watchdog CEO, Michael Greene, stated, "We are pleased to report strong top line growth for the third quarter in our Employee Benefit channel as well as for total revenue. We continue to enhance our identity theft service offerings, and in the third quarter we added two new features:  social network alerts and sex offender notifications. We now provide alerts from a subscriber's social media accounts on potential cyberbullying, cyber predators, and reputation-damaging items, including racist, violent, derogatory, vulgar or inappropriate comments directed at the subscriber and their family members. Additionally, subscribers may select an address to continuously monitor and receive alerts when sex offenders move into and leave that neighborhood. Alerts display information including location, photo ID, and the offense the sex offender committed."

Mr. Jay Lewis, ID Watchdog's CFO, commented, "As we look forward to the end of 2015, we anticipate that Employee Benefit Channel revenue growth and total revenue growth will range between 135%-140%  and 48%-52% for the fourth quarter of 2015, respectively, over the similar quarter in 2014.  Also, we anticipate that in the fourth quarter of 2015 our adjusted EBITDA as a percentage of revenues will range between 10%-13%."

Mr. Lewis continued, "We are projecting that approximately 83% of our Employee Benefit Channel revenue growth during 2015 will be generated from employees who subscribed to our identity theft services through their employers benefit plans and whose enrollments were effective as of January 1, 2015.  We anticipate that our January 2016 enrollments will drive a modestly higher percentage of our 2016 Employee Benefit Channel revenue as we contract with larger employers that typically enroll their employees for benefits on January 1.  Also, we intend to issue a press release by early January 2016, which will provide guidance for our projected first quarter 2016 revenue."

ID Watchdog, Inc.
Unaudited Consolidated Condensed Statements of Operations

Reconciliation of Net Income (Loss) to Adjusted EBITDA

ID Watchdog, Inc.
Unaudited Consolidated Statements of Financial Position

About Non-IFRS Financial Measures

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 tax expense, depreciation and amortization, share-based compensation,  gain (loss) on warrant liability and litigation provision) 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 unaudited consolidated interim condensed 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 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 news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.

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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