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We're cookin now.. Should be an interesting Monday. :)
TIO Networks 2015 Q2 Earnings Notice and Conference Call
VANCOUVER, March 24, 2015 /CNW/ - TIO Networks Corp., (TSX-V: TNC), intends to release 2015 Q2 financial results for the period ended January 31, 2015, before market opening on March 30, 2015.
A conference call to discuss the results will be held the same day at 1:30 pm EST, 10:30am PST.
To participate in the call please dial 416-644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO Conference.
TIO Networks Corp, (TSX.V: TNC) is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America. With more than 65,000 physical location endpoints to its bill payment processing network, TIO symbolizes fast, convenient and secure access to high quality bill payment services. Please visit www.tionetworks.com
TIO Networks CEO to Participate in the Barclays Emerging Payments Forum
VANCOUVER, March 20, 2015 /CNW/ - Hamed Shahbazi, CEO of TIO Networks Corp., (TSX-V: TNC) ("TIO"), North America's leading multi-channel bill payment financial processor and technology provider, will be a panelist on the Bank Technology / Fin Tech discussion on Monday, March 23, 2015 at 2:50pm ET at the Emerging Payments Forum hosted by Barclays. The conference will be held at The Westin New York at Times Square in New York City.
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable, and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit www.tionetworks.com or join the conversation on Twitter and Facebook.
Ralph Garcea has just initiated coverage of TIO NETWORKS for Canfor Fitzgerald = Price Target $2.00
"We are initiating coverage of TIO Networks with a BUY recommendation and a DCF-based one-year price target of $2.00 per share. TIO currently trades at a C2016 EV/Sales of 1.5x and EV/EBITDA of 12.3x vs its Global Payment Services comparables at an average of 3.0x and 10.0x, respectively."
Something must be brewing.. its been a bit quiet.
Q2 2015 Financials are coming up.
GLTA & JMO
Cantech Letter winner,TIO Networks, poises to capture major portion of mobile payment market
TIO Networks (TSX: V.TNC, Stock Forum) has been turning heads in the mobile payment sector for quite some time now and its CEO, Hamed Shahbazi, is gearing the cloud-based bill payment processor, to take a major bite of the mobile payment space through an untapped and highly-prospective demographic.
First, let’s talk about TIO. TIO Networks launched from Info Touch Technologies in 2006, which had begun building the “TIO Network” of self-service financial service kiosks back in 1998. The result of the company’s shift in name and focus transitioned the company from ‘kiosk solutions’ to high-value bill payment and financial services processing.
With a network of kiosks stationed in over 700 locations with 6 top tier convenience store chains such as Circle K, ExxonMobil, Alimentation Couche-Tard and Speedway SuperAmerica, TIO had a sizeable footprint in North America with over 250,000 people a month paying their bills through the kiosks.
The aforementioned expansion of services positioned the already-powerful market contender of portable payments to overtake the exploding mobile payment market made famous with Apple’s announcement of Apple Pay. In contrast to Apple however, the true genius of TIO Networks isn’t just what they serve; it’s who they serve – the under-banked.
The global demographic of the under-banked is unbelievably huge. According to a World Bank 2012 study, almost 50% of adults the world over do not have an account at a formal financial institution – that’s 2.5 billion adults that don’t have access to classical banking services. You may think this is an issue associated solely with developing economies like Kenya, where the average savings were gauged at $3.00, but this description also applies to approximately 25 million Americans.
By providing a range of financial services to these individuals at not only kiosks, but through a cloud-based mobile payment platform, TIO Networks has placed itself at the forefront of a globally advancing transaction trend that is expected to grow to $670 billion by the end of this year.
TIO Networks continues its innovation of its kiosk segment with patented processes for change-based transactions which allow the users to carry out one transaction like paying a bill with cash and use the remaining deposited cash against a future transaction. This portable transaction unit will continue to be an important part of service provision for those who cannot go through a teller.
It is no wonder that TIO Networks was a Cantech darling this year. In fact, the company won the Cantech Letter TSX Venture Exchange Tech Stock of the Year and CEO, Hamed Shahbazi, also won Executive of the year at the same event.
Fiscal 2014 was good to TIO Networks as well and saw the company pump up revenues 25% from the preceding cycle to $50.87 million with gross margins for the year also experiencing a bump to 29.4% from 21% reported a year ago. What’s really intriguing is the exponential rate of growth witnessed in the fourth quarter of 2014 where the company’s average daily processing rocketed 392% to more than $14.0 million from the matching 2013 period.
This organic growth explosion in 2014 was coupled with an extremely strategic acquisition of Globex Financial Services, a top player in bill payments and walk-up financial services, placing TIO Networks in a perfect position to take on 2015.
If results from the company’s Q1 2015 filing are any indication, TIO Networks has hit the ground running this year with revenues seeing a whopping quarterly increase of 138% to $19.68 million from the same 2014 quarter while gross profits soared 194% to $5.74 million from Q1 2014.
On wrapping the quarter, TIO Networks had $29.73 million in the till with no long term debt. The quarter also saw another acquisition of San Francisco, CA based Verifone Commerce Solutions (changesmart.com), another top provider of online payment services for U.S. consumers.
Considering TIO Networks continuing growth, increasing revenue and market potential of the under-banked demographic, this company has plenty of ceiling left on its market capitalization and smart investors should take note. I know I will be following their progress with great interest.
Read more at http://www.stockhouse.com/companies/bullboard/v.tnc/tio-networks-corp#1P2bAlMDoGU3yZqF.99
Baltimore’s Mobile Bill Pay Serves Millennials, Underserved Populations
The service, which took six months to develop, was on the municipality’s wish list for three years.
BY JESSICA RENEE NAPIER / FEBRUARY 13, 2015
The city of Baltimore is doing what it can to cater to its constituents' tech preferences. In December, the city made available a mobile online website for residents to pay city parking and water bills -- something that caters to not only millennials, but also the city's underserved populations.
This mobile bill pay service, which took six months to develop, was on the municipality’s wish list for three years. The city was unable to reach a solution with its payment gateway provider, so it instead came to an agreement with Global Express, a service that citizens were already using to make in-person payments via walkup bill-pay kiosks, to allow for mobile bill pay and modification of the city’s existing agreement.
“We’re just trying to meet the customers where they are,” said Janice J. Simmons, chief at the city’s bureau of revenue collections. “Millennials like to do things with their phones. By 2016, more people will be paying bills from their smartphones than their desktops.”
The service, which does not require a downloaded application, is a website optimized for any mobile device. The city also created a QR code that, once scanned, sends the constituent to the bill pay website. Through that site, the city can validate the individual’s account number, and it receives confirmation that a bill is paid.
“People hate to come downtown to pay a bill,” said Simmons. “And they often don’t have stamps. This new model creates ease and efficiency for the customer. They can get the bill paid without the hassle associated with it.”
The mobile bill pay option, which accepts payments up to $600, is also creating more access for underserved populations who may not be able to afford a computer, but are using a smartphone.
“Most underserved populations use smartphones as their means of connecting to the Internet,” said Joseph Carella, a member of the city’s IT team.
In addition to this model being a bonus for taxpayers, it also reduces overhead for both the city and payee. The more constituents who pay via Global Express, the lower the city’s transaction costs. Though there are no direct costs associated with launching the service or hosting it, citizens paying from their mobile phones pay a flat $2.5 convenience fee. If citizens pay their bill through the city’s website — which uses a different merchant provider — they are charged a convenience fee of 2.75 percent. For most, the mobile option is more affordable.
Since the launch, the city has collected from $116 to $2,700 per day for water bills and parking citations. There have been four to 16 parking transactions each day, and one to 13 water transactions each day.
Now that the city is confident in the service’s capabilities, it’s moving to more heavy advertise the mobile bill pay feature. All customers will soon receive an announcement about the service with the QR code.
As more customers use this service, the city anticipates that error rates should decrease since numbers are not being keyed.
“Now, the labor is on the part of the taxpayer,” Carella said. “They have every incentive to get it right and confirm before they hit submit.”
Identification numbers are entered twice, then the website validates its accuracy. Customers input all their data, and the transactions are available to the city the next day.
As citizens become more accustomed to using the mobile bill pay option, the city is exploring other billing options.
“The city has more than 100 different bill types,” Simmons said. “We’d like to add more bill categories. We’d like a person to pay a property tax, but the maximum is $600 and the average property tax is $1,500.”
Another addition it plans on making directly to its water billing system is to send mobile reminders to customers on the anniversary of the billing date each month. Customers simply have to select “yes” to pay their bill.
Nice close.. Lets get over a buck soon and stay there.
Some M&A would be nice here if it is accretive.
Looking forward to the next Q.
TIO Networks Reports Election of Brett Baris as Director
VANCOUVER, Jan. 28, 2015 /CNW/ - TIO Networks Corp. (TSX-V: TNC) ("TIO" or "TIO Networks" or the "Company"), is pleased to announce the election of Brett Baris as a Director of the Company at its Annual General Meeting held on January 23, 2015 in Vancouver, BC.
Mr. Baris is the Board representative of Inter-Atlantic Fund II, L.P. who is a material shareholder of TIO Networks. He is a Partner of IA Capital Group, where he has been employed since 1998. Mr. Baris is responsible for sourcing, analyzing, negotiating, structuring and monitoring private equity investments, and is a member of its investment committee. Prior to joining IA Capital Group, he spent two years as an analyst in the Financial Institutions Group of Salomon Smith Barney Inc. Mr. Baris holds a B.A. in Economics, magna cum laude, from Tufts University and an M.B.A. from Columbia Business School.
"We are pleased to welcome Brett Baris to the TIO Board," said Hamed Shahbazi, CEO of TIO Networks. "Brett's experience in financial technology investing will be very helpful to the Company's ongoing M&A program."
To learn more, visit: www.tionetworks.com.
About TIO Networks
TIO is a cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment. Visit: www.TIOnetworks.com. Join the conversation: www.twitter.com/tionetworks or Like us: http://www.facebook.com/tionetworks.
Hamed is buying more in the open market.
https://canadianinsider.com/node/7?menu_tickersearch=TIO+Networks+Corp.+%7C+TNC
The BOC cut key interest rate, sending the CDN dollar lower vs the greenback.
This FX leverage is great for TIO.
GLTA & JMO
Baltimore’s new mobile bill pay isn’t only aimed at the demographic you think
The city's new system for paying water bills and traffic tickets is great for millennials, sure, but the "underbanked" population uses it a lot, too.
Taking another step into the 21st century, Baltimore city government now has an online system for residents to pay some city bills. The new capability is the result of a partnership with Global Express, a subsidiary of the bill-pay kiosk company TIO Networks.
Using this website, residents can pay their water bills and traffic tickets on mobile devices. Along with visiting the link, there’s also the option to scan a QR (Quick Response) code that takes residents directly to the page.
The new capability is part of a set of tech-oriented upgrades to modernize the city’s ways of doing business, which has been heavily focused around the water system.
"You're seeing more penetration with the underbanked group, which typically have a lower combined income." HAMED SHAHBAZI, TIO NETWORKS
Prior to the mobile deal, Global Express already had a partnership with the city to accept payments at its walkup bill-pay kiosks around the city.
The mobile-oriented system was launched Dec. 19, but the city is beginning to advertise it more heavily now that a soft-launch phase to work out issues is complete.
Given the past partnership, “It was a no-brainer,” TIO Networks CEO Hamed Shahbazi told Technical.ly Baltimore.
In announcing the upgrades, city officials said the new system is designed to cater to members of the smartphone-obsessed generation you’d probably assume it is.
“This new mobile payment option will be particularly appealing for our millennial customers who prefer to do everything with their smartphones,” Janice Simmons, chief of the Bureau of Revenue Collections for the Baltimore City Department of Finance, said in a statement.
According to Shahbazi, however, it’s also designed to help “underbanked” people, who tend to be lower income and use services like payday lenders, or don’t have a bank account at all.
“They’re using the mobile phone like a desktop computer,” Shahbazi said. “You’re seeing more penetration with the underbanked group, which typically have a lower combined income.”
And, Shabazi said, that trend is playing out everywhere — not just in Baltimore.
TIO Wins Cantech TSX.V Tech Stock and Executive of the Year Awards
TORONTO, Jan. 16, 2015 /CNW/ - TIO Networks Corp., (TSX-V: TNC) ("TIO"), North America's leading expedited bill pay and technology provider, is proud to announce the acceptance of two awards during the 2015 Cantech Investment Conference.
During the annual Cantech Awards Gala, TIO was awarded the Cantech Letter TSX Venture Tech Stock of the Year, and CEO Hamed Shahbazi the Cantech Letter TSX Venture Tech Executive of the Year.
This places TIO Networks at the forefront of the technology trajectory in Canada at a pivotal time. CEO Hamed Shahbazi attributes the company's success to a strong growth plan involving a focus on existing large enterprise customers as well as multiple strategic acquisitions made in 2014 to bolster the company's positioning as a bonafide leader in bill payment processing in the US marketplace.
"It's been an outstanding year for TIO," said Shahbazi. "To be recognized as one of the leading tech companies listed on the TSX.V is a true honor for our hard working team. We have some bold plans for 2015, and expect TIO to continue to build on the success we achieved in 2014."
The Cantech Investment Conference is the ultimate showcase for Canadian technology development and investor opportunities. It brings together top investors, thought leaders, and influential executives from Canada's fastest growing companies for a full-day of presentations and exhibitions.
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable, and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit www.tionetworks.com or join the conversation on Twitter and Facebook.
TIO Networks Partners with City of Baltimore to Launch Mobile Phone Bill Payments for Residents
January 15, 2015: 08:00 AM ET
BALTIMORE, Jan. 15, 2015 /PRNewswire/ -- TIO Networks Corp. (TSX-V: TNC) ("TIO"), North America's leading multi-channel bill payment processor, today announced a partnership between its subsidiary Global Express and the City of Baltimore. The partnership enables residents of Baltimore City and County to pay water bills, and Baltimore City vehicle citations through any Internet enabled mobile device such as iPhone, iPad, Android or Blackberry.
"This innovative new partnership is a great next step in our ongoing efforts to better connect residents with convenient and secure services," said Baltimore City Mayor Stephanie Rawlings-Blake. "My administration will continue to work with partners like TIO Networks and Global Express to pursue twenty-first century policies that create a stronger digital infrastructure to better connect communities."
Residents can scan the quick response (QR) code that takes them directly to the payment option page, saving keystrokes, making it easy to find and simple to select. Payments of up to $600 may be made from a checking account at no cost, or from a debit or credit card by paying a $2.50 convenience fee.
"This new mobile payment option will be particularly appealing for our millennial customers who prefer to do everything with their smartphones," said Janice Simmons, chief of the Bureau of Revenue Collections for Baltimore City Department of Finance. "This new system will allow the City to meet our customers where they are now, and wherever they are going next."
To pay a bill online visit: http://www.baltimorecity.gov/mobilepay, or https://www.payblz.com/BaltimoreCity/AccountEntry/AccountEntry.
The expedited payment options went live as of December 19, 2014.
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable, and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit www.tionetworks.com or join the conversation on Twitter and Facebook.
TIO Networks to Present at the 2015 Cantech Investment Conference
VANCOUVER and TORONTO, Jan. 12, 2015 /CNW/ - Hamed Shahbazi, CEO of TIO Networks Corp., (TSX-V: TNC) ("TIO"), North America's leading multi-channel bill payment financial processor and technology provider, will present at the 2015 Cantech Investment Conference on January 15 at the Toronto Convention Centre.
The Cantech Investment Conference is the ultimate showcase for Canadian technology development and investor opportunities. It brings together top investors, thought leaders, and influential executives from Canada's fastest growing companies for a full day of presentations and exhibitions.
The 2015 conference will take place on January 15 from 7:00am to 6:00pm at the Metro Toronto Convention Centre. Mr. Shahbazi's presentation will commence at 3:30pm. Management will be available during the day on January 15th at booth 312 for one-on-one meetings. Please contact TIO personnel to schedule a meeting.
The company is also pleased to report that TIO Networks has been named a finalist for the Cantech TSX Venture Tech Stock of the Year award; Hamed Shahbazi has also been nominated as the Cantech Letter TSX Venture Tech Exec of the Year. The winners for both categories will be announced during the Cantech Letter Awards Dinner on the evening of January 15, 2015.
"2014 was an outstanding year for TIO," said Shahbazi. "It's a real honor to be nominated in both categories. We look forward to sharing our experiences with industry stakeholders at the show alongside other quality companies presenting."
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable, and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit www.tionetworks.com or join the conversation on Twitter and Facebook.
Both are TIO. TNCGF is the US listing counterpart.
The price of the TNCGF is a derivative of the TSX-V stock.
I would just call your broker and ask them to move it over to the proper ticker. Keeps everything tidy. :)
GLTA & JMO
Junk,
Guess I was not paying attention but bought TNCGF not TSXV . What did I buy? Both say Tio Networks.
TIO Reports Q1 2015 Financial Results
GROSS PROFIT INCREASED BY 194% YEAR OVER YEAR, TRANSACTIONS INCREASED BY 10% QUARTER OVER QUARTER
VANCOUVER, Dec. 17, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced first quarter 2015 financial results for the period ended October 31, 2014.
First Quarter financial & business highlights
Revenue increased 138% YoY (year over year) to $19,684,213
Gross profit increased 194% YoY to $5,741,102
Gross margin increased YoY to 29.2% from 23.6%
Cash Flow from Operating activities increased YoY by $3,166,564 to $1,067,202
Processed approx 13M transactions worth about $1.3B representing 375% YoY transaction growth and 10% growth sequentially
Finished the period with $29,728,405 in cash and cash equivalents (including restricted cash and cash held to fulfill bill payment obligations) and no long-term debt
Acquired the assets of San Francisco, CA based VeriFone Commerce Solutions (chargesmart.com), a leading provider of online bill payment services for US consumers
TIO's direct-to-consumer membership base grew 274% sequentially to over 970,000 members, including the Company's branded "TIO Wallet" and "ChargeSmart" consumer programs.
*EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is EBITDA plus stock-based compensation
"We had another very strong quarter driven by significant organic and inorganic growth," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "In the first quarter, we continued to execute on our growth initiatives as well as the ongoing integration of Global Express and the acquisition of the ChargeSmart.com assets. Our efforts are continuing to transform TIO into a leading multi-channel bill payment processor well positioned to capture a larger share of a growing, multi-billion dollar industry."
A conference call to discuss the results will be held Wednesday, December 17, 2014 at 1:30 pm EST, 10:30am PST. To participate in the call please dial 416-644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO Conference.
TIO NETWORKS CORP.
TIO is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America. TIO symbolizes fast, convenient and secure access to high quality bill payment services. Please visit www.TIOnetworks.com.
TIO Networks 2015 Q1 Earnings Notice and Conference Call
VANCOUVER, Dec. 12, 2014 /CNW/ - TIO Networks Corp., (TSX-V: TNC), intends to release 2015 Q1 financial results for the period ended October 31, 2014, before market opening onWednesday December 17, 2014.
A conference call to discuss the results will be held the same day at 1:30 pm EST, 10:30am PST.
To participate in the call please dial 416-644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO Conference.
TIO Networks Corp, (TSX.V: TNC) is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America. With more than 65,000 physical location endpoints to its bill payment processing network, TIO symbolizes fast, convenient and secure access to high quality bill payment services. Please visit www.tionetworks.com
Globe & Mail - A low-loonie era: Keep these 21 stocks on your radar
What are we looking for?
Stocks positioned well for a low-loonie era.
The recent plunge in oil prices has been fully reflected in the value of the Canadian dollar, which last month fell to its lowest level against the U.S. dollar since 2009.
As a currency linked to commodity prices, the oil selloff dragged down the value of the loonie to a recent low of $87.21 (U.S.) from $94.15 in July. The Canadian currency traded in excess of par as recently as February of last year.
OPEC’s decision last week not to cut production amid an oversupplied global oil market, combined with recent headline strength in the U.S. economy, have combined to keep the Canadian dollar subdued.
In October, National Bank Financial put together a list of Canadian stocks poised to be the “big winners of a declining Canadian dollar environment.”
“We think the greenback has considerable upside,” the bank said. “It will become harder for the loonie to resist the headwinds generated by the U.S. dollar’s ascent.”
How did we do it?
We took the National Bank list of potential winners and included some metrics, as well as information on recent stock performance.
We looked at the movement in share price both year-to-date, and since the report was produced on Oct. 8.
And we provided forward price-to-earnings ratios and dividend yields for each stock.
What did we find?
The list is composed of 21 stocks spanning several sectors, but with most having in common significant interests south of the border.
Most stocks on National Bank’s list generate a large portion of their revenues from the U.S. market. Revenue denominated in U.S. dollars gets a boost when converted on financial statements by companies reporting in Canadian currency.
All else being equal, these companies should benefit when the U.S. dollar strengthens against the loonie.
Investors should be aware that several of these stocks have made big moves in the almost two months since the report was produced. And they should conduct their own research before making any investment decisions.
*click the link for the list*
Link: http://www.theglobeandmail.com/globe-investor/investment-ideas/number-cruncher/potential-winners-in-a-low-dollar-era/article21862520/
TIO Networks is still undervalued, says PI’s Sangha
NOVEMBER 26, 2014 BY NICK WADDELL
PI analyst Pardeep Sangha expects TIO Networks’ revenue will grow to $72-million in fiscal 2015 and then to $75-million the following year.
It is unlikely TIO Networks (TSX:TNC) will be able to continue to post 100% year-over-year revenue growth, but the stock remains undervalued, says PI analyst Pardeep Sangha.
Yesterday, TIO reported its Q4 and fiscal 2014 results. In the fourth quarter, the company earned $20,655 on revenue of $19.69-million, a topline that was up 100% over the same period a year prior.
“We had a truly superb quarter and year driven by significant organic and inorganic growth,” said CEO Hamed Shahbazi. “Fiscal 2014 was a year marked by the successful execution of large-scale and meaningful initiatives that have positioned Tio for further growth. Going forward, we are confident about our growth prospects in fiscal 2015, which will include a full years contribution of both Globex and ChargeSmart revenue — we have never been stronger. We continue to focus on opportunistic acquisition and growth opportunities.”
Sangha notes that TIO’s revenue growth was driven by the company’s Globex acquisition and the acquisition of Leap Wireless (Cricket) by AT&T. He expects that the company’s revenue will decline from Q4 to Q1 because of a change in revenue recognition for Cricket customers migrating onto the AT&T GSM network, but says this decline will be partially offset by growth in the overall number of AT&T locations.
The analyst expects TIO’s revenue will grow to $72-million in fiscal 2015 and then to $75-million the following year. He thinks the company’s gross margins will increase to 33% in 2015 and to 39% in 2016.
In a research update to clients this morning, Sangha maintained his BUY recommendation and one-year target price of $1.50 on TIO Networks.
Link: http://www.cantechletter.com/2014/11/tio-networks-still-undervalued-says-pis-sangha/
TIO Networks Secures Patent for Change-Based Transactions on Reverse ATMs
VANCOUVER, British Columbia, Nov. 26, 2014 /PRNewswire/ -- TIO Networks Corp. (TSX-V: TNC) ("TIO"), North America's leading expedited bill payment company, today announced its patent for change-based transactions on electronic kiosks has been approved by the United States Patent and Trademark office. This patent relates to cash transactions on an electronic kiosk where remaining funds after the initial transaction can be used towards a subsequent transaction. Transactions can involve products or services, as well as account-based transactions.
"Our team is driven to support and provide convenient service to the underbanked population; this includes adapting systems such as reverse ATMs to better cater to those who are cash dependent," said Hamed Shahbazi, CEO of TIO Networks. "By allowing leftover funds to be allocated to another purchase or bill payment, we ensure our customers have access and control over each dollar they've earned."
Recognizing that many reverse ATMs required the customer to pay the exact amount, potentially losing leftover change, Shahbazi applied for the patent in 2005. Almost a decade later the patent has been granted and TIO Networks continues to focus its services on America's underbanked population, which has grown to 68 million people, representing one in five households. TIO Networks is a socially minded corporation dedicated to providing a much-needed service to a market that is often under-served and under-represented.
"The walk-in bill payments market generates annual fee revenues of $2 billion a year in the US, including both clerk-driven bill payments and self-service payments at kiosk," said Shahbazi. "Our patented reverse ATM is a critical tool for the underbanked population who look to alternative financial services that are accessible and affordable."
TIO, a cloud-based omni-channel bill payment processor, has recently experienced greater expansion into the US and diversification in its product and service offerings with the acquisition of ChargeSmart.com and Global Express. Since the acquisitions, the company has experienced triple digit growth in both revenues and transactions. For more information including images, charts and tables, visit: http://1.usa.gov/1xy6lFv.
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit: www.TIOnetworks.com. Join the conversation on www.twitter.com/tionetworks or Like us on www.facebook.com/TIONetworks.
Media Contact:
Michelle Plaschinski
Yulu Public Relations Inc.
604-558-1656
7 Questions with TIO Networks CEO Hamed Shahbazi
Welcome to 7 Questions, a new department in which entrepreneurial innovators offer a window into what makes them tick.
In this installation, we talk to Hamed Shahbazi. Shahbazi is the CEO of TIO Networks, aPROFIT 500-winning Vancouver-based firm that provides technology to facilitate payments for telecom and utilities companies, among others. TIO has had a big year. In January, the company completed the acquisition of Globex Financial Services, which dramatically increased its profile in the U.S. In October, BNN’s Business Day AM named TIO one of the most promising small companies traded on the TSX. And recent preliminary financial results show triple-digit growth in both revenue and user transactions. Not bad for a business Shahbazi started fresh out of university in 1997.
We asked Shahbazi to shed some insight into what makes his entrepreneurial life so rewarding:
Question 1: When did you know you wanted to become an entrepreneur?
Hamed Shahbazi: I knew when I was finishing off my engineering degree at the University of British Columbia. I was about 21 or 22 years old. And I started my business shortly after.
Question 2: Who is your entrepreneurial role model, and why?
HS: Richard Branson. Unlike Bill Gates or Steve Jobs, Richard wasn’t a genius who anticipated the next wave of technology and cornered the market on it. But he has time and time again demonstrated the power of brand, user experience and a motivated workforce. He has built his billions on the back of a self-made cultural revolution, which is pretty ingenious in my opinion. For this reason, he is a role model of mine.
Question 3: What do you know now that you wish you’d known when you started your business?
HS: I wish I’d failed faster and aimed higher. When I started my business at age 22, I was fiercely competitive and I didn’t want to fail. I did everything in my power, including working 18 hours a day, to ensure that I didn’t fail with the first iteration of the TIO business model, which involved self-service kiosk payments.
This worked in that I was able to keep the business from failing, but it was probably the wrong thing to do. While I eventually was able to pivot the company from a small niche to a big market like consumer bill payments, it took much longer and cost much more than it should have. I wished I had failed fast, then started up again with a more compelling business model that aimed at a larger market opportunity, like multi-channel consumer bill payments.
I now define “failure” in a completely different way. I only define it as the “absence of trying.” Now I believe the only time one really “fails” is when one fails to try.
Question 4: What is the hardest thing you’ve had to do as a business leader?
HS: Let go of a loyal, committed and experienced employee.
Question 5: How do you prioritize your time?
HS: I split my time between my HLAs, or “high leverage activities,” which are culture, people, M&As and capital (read: investors).
Question 6: How do you define success?
HS: I generally define success as building a business I can be proud of: a business that has positive impact in the marketplace and on its intended addressable audience.
Question 7: What excites you most about your company’s future?
HS: What excites me is TIO’s culture. Our culture is one that punches well above its weight, is aspirational and knows no boundaries. At the same time, we are humble and disciplined. I believe it’s what makes us a force to be reckoned with in our industry.
TIO Networks to Present at the LD MICRO Conference on December 3
VANCOUVER, British Columbia, Nov. 21, 2014 /PRNewswire/ -- TIO Networks Corp., (TSX-V: TNC) ("TIO"), North America's leading multi-channel bill payment financial processor and technology provider, today announced that Mr. Hamed Shahbazi, Chairman and Chief Executive Officer, will present at the LD MICRO Conference at 9 a.m. (PT), Track 1, on Wednesday, December 3, 2014. The conference will be held December 2-4, 2014 at the Luxe Sunset Boulevard Hotel, 11461 Sunset Boulevard, Los Angeles, CA. TIO Networks management will be available during the day on December 3 for one-on-one meetings. Please contact LD MICRO to schedule a meeting.
"We are honored to have TIO Networks present at the Main Event this year," stated Chris Lahiji, Founder of LD Micro.
About LD MICRO
LD Micro is an investment newsletter firm that focuses on finding undervalued companies in the micro-cap space. Since 2002, the firm has published reports on select companies throughout the year. The firm also hosts the LD Micro Invitational. It is a non-registered investment advisor. For more information, please contact 408-457-1042 or visit www.ldmicro.com.
About TIO Networks
TIO Networks is a cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America. With more than 65,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services. Visit: www.TIOnetworks.com. Join the conversation on www.twitter.com/tionetworks or Like us on www.facebook.com/TIONetworks.
Interview with TIO Networks CEO - Hamed Shahbazi.
http://www.bnn.ca/Video/player.aspx?vid=486535
Looking forward to another great quarter.
GLTA
At the risk of sounding like a broken record..
ANOTHER 52 WEEK HIGH today.. LOL
$1.12
And the big boys are still buying big blocks.
GLTA
New 52 WEEK HIGH.
Sounding like a broken record here. LOL
$1.11 on BIG VOLUME.
Think she's going to run well into Q1 2015.
GLTA & JMO
Closed at the HOD and a new 52 Week High.
Talk about a bullish trend.
$1.09
And plenty of room til the PT of $2.10
GLTA
New 52 Week High. Not bad for a Monday!
GLTA
Nice day. Closing just off the high of the day.
Up .15 and 16%
We have the serious money coming to bat now and soon we should be off the venture into a more visible and investor friendly exchange.
TSX or AMEX in my estimation would be a good move.
Keep up the great work management.
GLTA & JMO
YES WE WILL.
HOD = $1.02
Will we see a new 52 week high on a Friday today?
Now thats what I call appreciation.
TIO must have made an impression at the investors conference.
I see $1.69 on the ASK. LOL
Looks like the market has an appetite again for this gem after a bit of a breather.
Next stop: TSX? Amex?
:)
GLTA
TIO is Up 10% on a flat day for markets.
Balance of Trades is impressive:
http://ih.advfn.com/p.php?pid=trades&symbol=TSXV%3ATNC
100% YOY Growth.
Impressive.
Profitability upon us. And TIO deserves a 100 million market cap if not more.
Preliminary Fiscal Q4 Results
http://www.newswire.ca/en/story/1419694/tio-announces-preliminary-fiscal-q4-2014-us
Wowza!
Haywood Securities is now on the BID side.
Next week should be interesting.
GLTA
The MACD for TNC currently provides a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above the critical level of 0 which means that the underlying moving averages are trending higher.
I like the way this is trading and the Bolinger Bands are narrowing.
This maybe closer to $5 in the next year or so..
Fairly compelling write-up by Seeking Alpha.
Long and strong Tio Networks.
TIO Networks: Low Risk, 100%+ Upside
Aug. 25, 2014 10:20 AM ET
Disclosure: The author is long TNCGF.
Summary
TIO trades at a hefty discount to fair value. Based on 2x 2015E revenues of $55 million, the company should trade at $1.97/share v.s $0.82 as of August 24th, 2014.
Recent acquisition of Globex Financial has lifted gross margins from 20% to 30% over the past 3 quarters, and there is still room to go.
TIO's partnership with AT&T and exclusivity with AT&T's discount brand Cricket Wireless provide significant revenue growth going forward, driving revenues from $41 million LTM to $55 million in 2015.
Due to TIO's small size, sluggish historic revenue growth, and sub $1 share price, it's off the screens of many small-cap fund managers and investors, presenting a great entry opportunity.
(Editor's Note: Investors should be mindful of the risks of transacting in illiquid securities such as TNCGF. TIO Networks' listing in Canada, TNC.V, offers stronger liquidity.)
Summary
Every now and then an investment comes along whose extraordinary risk/reward characteristics coupled are to a plethora of catalysts to help close the valuation gap between market and intrinsic value. TIO Networks is one of those investments.
What do they do? TIO Networks is a Vancouver based company which specializes in processing payment transac1tions. The company offers multi-channel bill payment processing capabilities. These include self-service kiosks; point of sale, mobile and web channels; and retail money order services.
Why does the opportunity exist? The company has historically shown slow revenue growth and a lack of profitability, which have left the company off the screens of most of the small cap fund managers and investors.
What's changed? TIO's recent acquisitions of Globex Financial have increased gross margins from 20% to 30% over 3 quarters, and have assisted in growing transaction revenue from $9 million to $11 million per quarter over the same period. This performance is likely to continue, especially given TIO's recent acquisition of Chargesmart in August of 2014.
Further, with the launch of AT&T's discount wireless brand Cricket Wireless, there is significant room for future revenue growth. AT&T has long been aTIO billing partner, and all of the transaction activity from Cricket Wireless is set to go through TIO. Given the resources and reach that AT&T has in the market, this single deal is likely to generate $50 million of revenue per year in 5 years for TIO with a quick ramp up period, and almost no incremental SG&A for TIO: much of the gross margin will fall to the bottom line.
What's the upside? TIO trades at a huge discount to fair value. TIO's comparables, while larger, trade at a median 2.9x sales, whereas TIO trades at just 1.2x LTM sales. Given the company's improving financial situation, multiple expansion is likely to give shares a hefty lift going forward. Based on 2.0x estimated 2015 sales, the company is worth $1.97 per share, presenting investors with a low risk opportunity for 140% upside.
What's the margin of safety? TIO already trades at a heavy discount to peers and management has shown already that it can execute on its growth targets. The company also maintains a healthy cash balance that should continue to grow as the business improves. A conservative valuation would place the company at 1.5x FY2014 sales, which would have the shares trade at $1.25; thus the company trades at least at a 50% discount to conservative fair value.
Business Description
TIO Networks is a Vancouver based company which specializes in processing payment transactions. The company offers multi-channel bill payment processing capabilities, which include self-service kiosks; point of sale, mobile and web channels; and retail money order services.
TIO targets the large underbanked and unbanked market in the United States. These (roughly 68 million) people, outside the traditional banking system, rely on alternative means to do such mundane tasks as paying bills or rent; this is where TIO fits in. Though its Transaction Processing System,TIO enables the underbanked and unbanked to pay their bills quickly and easily. TIO's system allows customers to pay at kiosks, at retail point of sale, via the web, and with TIO's excellent mobile app.
Revenue Model
TIO earns revenue through transaction fees, which have historically ranged from $2-3 per transaction, at a gross margin of around 20%. Over the course of 2014, these metrics have changed significantly: revenues per transaction have decreased to $1-2, but gross margins in absolute terms have held steady, raising gross margins for the company to 30-35%.
In early 2014, one of TIO's largest billing partners (likely AT&T) changed the way they pass on revenue to TIO from a flat convenience fee to a back end fee per transaction. This lowered TIO's revenue per transaction in the first quarter of 2014. Furthermore, TIO's acquisition of Globex financial diluted the revenue per transaction, since Globex generates $1-2 per transaction. However, despite both of these adverse events, TIO's gross margin increased in Q1 2014 to 22.28% vs 20.09% in Q4 2013, largely because of the higher margin Globex revenue.
Over the course of the year, the gross margin story has continued to improve, largely as a result of the higher gross margin contribution from Globex Financial. Gross margins for the latest quarter (Q3 2014) stood at 30.83%. These margins are likely to increase further as the Chargesmart acquisition begins to add to TIO's results, and as more of TIO's users transact through the TIO Wallet (described below) which generates higher gross margins than TIO's kiosks.
Recurring Revenue
Of particular importance is that 98% of TIO's revenues are recurring, something highly desirable in small tech companies as it reduces revenue volatility and thus business risk. 96% of revenues are transaction based; and because customers pay multiple bills every year, these are recurring in nature. It is also worth noting that TIO managed to grow revenues from 2009-2012 in the weak US consumer environment, indicating that its revenues are relatively recession proof. This makes sense when one considers that, recession or not, bills must be paid.
2% of TIO's revenues come from hardware support related to Kiosks. As the company increases focus on web-based applications, and as the TIO Wallet contributes a larger portion of revenues, this maintenance revenue should decline as a percentage of sales.
The remaining 2% of revenues that are not recurring comes primarily from software and hardware licensing.
Business Strengths
TIO has a history of success despite stagnating revenues over the past few years. The company offers a wide range of billing partners, raging from AT&T to Duke Energy, which allows great ease of use for customers, but also creates a huge barrier to entry. TIO has also never lost a billing partner, something that shows the success of the company's relationship management.
TIO also offers a wide range of services (with potential for expansion) to its clients, most notable of which is the TIO Wallet.
TIO Wallet
TIO's business is still largely kiosk based. This is surprising given the huge penetration of the web and smartphone in modern society. TIO's Wallet offering allows customers to access, through the web, mobile, and kiosks, a centralized site where they can pay bills, add new bills, and view their payment history. In effect, TIO's Wallet acts as a pseudo-bank for the under and unbanked.
Because of its convenience, TIO Wallet effectively raises switching costs forTIO's customers allowing the company to get more value per customer. Going forward, TIO can use the Wallet as a way to offer its customers other services, such as consumer credit and stored value accounts. Further, because the wallet may be accessed through mobile phones and the web as well as through kiosks, the margins for transactions done within the wallet will be higher than the transactions done via kiosk. As more and more customers migrate to the Wallet, profitability for the company overall should increase.
TIO Wallet is already a success, with subscriber growth from 73,390 in Q4 2013, to 220,924 in Q3 2014. This represents growth of 201% in less than a year.
Management
Key to any business is management. This is particularly true in smaller companies, where a good management team can earn shareholders astounding long run returns, and where a bad management team can bankrupt a company. Fortunately for TIO shareholders, TIO's management has proven itself to be highly competent.
The CEO, Hamed Shahbazi, has a long history with TIO, having been a Director since 1997 and President since 2000. He has proven a capable leader for TIO, leading the company's re-invigoration and executing the successful acquisition of Globex Financial(which has already shown to be a good strategic acquisition). Mr. Shahbazi also has been responsible for securing a number of key connections with various clients of TIO as well as for managing strategic alliances with HP, Microsoft and Cisco Systems.
In terms of alignment, management doesn't own much of the company. However, given Mr. Shahbazi's importance to the company, it is reassuring to know that he owns 2.3 million shares, or about 4% of the company.
Industry Overview
According to the CFIS in 2011, the walk-in bill payment market alone generated $700 million of fees on $32 billion in transaction values. Money Order markets generated a further $250 million of fees on $45 billion of transaction volumes.
Given these estimates of market size, we can infer that TIO commands a respectable 6.5% market share (assuming $5 billion in transaction volume attributable to TIO). Given this market's significant degree of fragmentation (5 public market players, and many more private players smaller than TIO), this market share gives TIO significant ability to grow through consolidation of the industry. With the acquisitions of Globex Financial and Chargesmart,TIO has shown it is willing and able to be a consolidating force in the industry.
The cash preferred markets in which TIO operates are largely comprised of less affluent families and includes many immigrants, but also younger members of all demographic groups. This demographic composition creates a strong base for industry growth; millenials (specifically 23 year olds) are thelargest group in the United States, and they are increasingly turning to mobile payment and billing solutions and away from banks in their lives.
TIO's mobile strategy is also applicable across the world. For example, 170 million people in Latin America are underbanked or unbanked, and 70% of Latin American citizens own a mobile phone. TIO's web and mobile focus allows them to effectively tap this market, something they have already done in the United States. Even TIO's name (which means "uncle" in Spanish) has deliberately targeted the Hispanic community, which has historically not been trusting of banks.
Catalysts
In any good investment thesis there will be a misevaluation; however, it is not enough simply to identify an undervalued company; one must also identify catalysts to close the gap between market value and intrinsic value. Fortunately, TIO has a number of catalysts that will close the gap over the next few years.
1) Aio/Cricket Wireless
Historically, TIO has seemed a stagnating company. Its largest billing partner, Cricket Wireless, had declining subscribers because of poor network coverage; and transaction revenue to TIO declined accordingly. Despite this huge drag on revenues, TIO did manage to achieve revenue growth in 2011; but for 2012 and 2013, revenue growth stagnated and so did shares of the company, many investors losing interest because the company was no longer a growth story. But in 2013, things changed.
On June 6th, 2013 TIO, in an inconspicuous press release, announced that it would be the sole billing partner of Aio wireless, AT&T's attempt to break into the prepaid market. Given the success of other telcos, such as T-Mobile, in this space, Aio looked to be a huge success. TIO stood to gain massively from this success.
From a transaction revenue perspective, Aio was expected to be the size of Cricket Wireless in 5 years, with all of the transaction revenue going to TIO.TIO only processed about 25% of Cricket's transaction volume. This revenue to TIO amounted to approximately $20 million per year in 2013; in total Cricket generated approximately $80 million a year in transaction revenues. If the expectations for Aio materialized, then in 2018 TIO would be generating $60-70 million per year in transaction revenues from Aio alone; nearly double TIO's existing revenue.
Things improved further for TIO in May 2014. Aio bought Cricket Wirelessand merged it with its Aio entity, renaming the combined entity Cricket Wireless. After the acquisition, AT&T announced that it would be moving all of Cricket's dealer locations to TIO. This has led to an increase in daily transactions from 14,000 to 51,000, and revenue growth is sure to follow.This 271% increase in daily transactions will significantly impact the company's revenue in Q4 2014.
As mentioned earlier, AT&T has changed how it passes on revenue to TIO to a back end convenience fee model, something which has lowered revenue per transaction. As such, the total revenue for TIO derived from Cricket Wireless is likely to shrink relative to the original estimates for Aio's size of $80 million in 2018. Assuming the old revenue per transaction was $2.50 and the new revenue per transaction is $1.50, we can estimate that Cricket's new revenue potential in 2018 is approximately $48 million per year for TIO; still a very impressive number.
Perhaps most importantly, this additional revenue comes with very little cost for TIO. Management estimates that all it needs to manage the extra business would be 2 additional staff members. Assuming salaries of $80,000 a year (to be conservative) this only adds $160,000 a year to SG&A. At a 34% gross margin, this Cricket business results in $16 million a year in pre-tax profit.
2) Acquisitions
In the past year, TIO has stepped up its acquisition activities, aiming to consolidate the highly fragmented bill processing market, as well as to expand its own geographic footprint and the services it can offer its customers. TIO's acquisition strategy reflects well on management, as both of the large acquisitions in the last year (Globex and Chargesmart) have added to gross margins, and are likely to be accretive to earnings.
Globex Acquisition
On January 1st, 2014, TIO completed its $8 million acquisition of Globex Financial, a bill payment and money order company based in Maryland. The acquisition was financed with $2 million in debt, $3 million in shares, and $3 million in cash. Globex had revenues of approximately $16-18 million in 2013, meaning the transaction was completed at around 0.5x sales.
The Globex transaction made immense sense for TIO for a number of reasons. First, it expanded TIO's presence in the eastern United States, adding ~3,400 locations. Second, Globex's customer base consists largely of utility customers (including Duke Energy and Florida Power and Light) helping to diversify TIO's business away from wireless telecom companies, and further adding to the company's recession-proof nature.
Globex also had the effect of raising the company's consolidated gross margin. TIO's pre-existing gross margin was in the 20-25% range, while Globex margins are in the 50% range. The pro forma gross margin for the company should stabilize between 34-35%, a significant improvement over historic metrics. Already, as of the quarter ended April 30th 2014, gross margin increased 102% YoY, and stood at 34%.
Chargesmart.com Acquisition
On August 7th, 2014, TIO announced the acquisition of Chargesmart.com, which provides online bill payment solutions for US customers. The company processes over $100 million in transactions per year. Assuming revenue per transaction of 3-4%, Chargesmart earns between $3 and $4 million in revenue per year.
This acquisition stands to increase TIO's gross margins further, as the transactions via Chargesmart are at a higher gross margin than TIO's existing business. The acquisition also stands to expand TIO's web based presence, adding 700,000 new customers. Because of this significant customer increase, one can assume that there would be significant opportunities to cross sell for TIO.
Future Acquisitions
Given TIO's relatively large market share, it is definitely able to acquire smaller players in the bill payment space. Management has indicated that acquisitions are certainly on the table as a means of growth for the company, and normally this might be disconcerting especially if the company begins to look like a roll up. Fortunately, TIO's recent acquisitions were sensible strategically and were prudent financially. This shows investors thatTIO's management isn't going to embark on an acquisition spree, rather, they will selectively acquire when it makes sense.
Catalyst Summary
The growth of Cricket Wireless, Globex Financial and Chargesmart acquisitions, and the potential for future acquisitions serve to improve the financial picture of the company going forward, and will drive shares higher for a number of reasons.
When small cap fund managers and investors screen for potential investments, many of them are screening for traditional "growth" companies: ones that are growing revenues at 20% or more a year and have high margins that accompany that growth. TIO had neither until the past few quarters; and as such, slipped under the radar screen of the market. Furthermore, with shares under the $1 mark, it carries the dreaded "penny stock" moniker that likely turned off larger investors.
These things are all about to change. First, as growth picks up and margins improve, the company will look much better to more fund managers and investors, which should drive flows into the shares. Second, as the shares cross the $1 mark, even more people are likely to notice the company. The market is likely to wake up to TIO in a very large way.
Valuation
Comparables
TIO trades at a heavy discount to its peers for some legitimate reasons. The company is still relatively small and so there should be a higher risk premium built into the valuation. Furthermore, as outlined above, TIO's historic performance of low margins and stagnant revenues meant its discount valuation was earned.
Thanks to the changes in the recent months, namely higher growth going forward coupled with higher margins, TIO now deserves a more fair valuation. Even taking into account a reasonable size discount (to reflect business risk as well as illiquidity risk), TIO should trade at 2.0x sales given it's growth potential. TIO's larger comps trade at a median 2.9x LTM sales.
At 2.0x LTM sales, TIO should trade at an $82 million enterprise value, or $1.48/share, representing 80% upside potential.
To get a sense of the long-term trajectory for the share price, it's worth modeling where sales, and consequently, where cash flows are going. TIOguided $45 million in revenue and $17 million of gross margin in calendar 2014 (not to be confused with TIO's fiscal year, which ends in July) when it acquired Globex Financial, and the subsequent acquisition of Chargesmart and the AT&T acquisition of Cricket Wireless will bring calendar 2014 revenues come in significantly higher than $45 million.
After FY 2014, TIO's growth is likely to accelerate as Cricket Wireless begins to grow again because of AT&T's efforts to turn the business around. Based on organic growth prospects for the existing business, revenue synergies from TIO's two recent acquisitions, and growth at Cricket Wireless, it is likely that FY 2015 revenue will come in between $55-60 million with FY2016 revenue reaching $65-70 million.
Based on these estimates and a 2.0x EV/sales multiple, we can construct a range of price targets for TIO, seen in figure 8.
If these numbers hold true, and there is obvious risk in forecasting 3 years into the future, then one can expect a 51.3% annualized ROI over 3 years. This return should more than compensate for the risk of investing in TIO and represents an incredible opportunity for investors.
One thing worth noting is that TIO's valuation multiples are likely to improve over time. It may be worth 2x sales, but it will take some time for TIO to trade there. As such, the 1 and 2 year ROI given above is very likely to be exaggerated. As multiple expansion is impossible to forecast, the trajectory given in figure 8 will have to suffice.
DCF
With high growth companies like TIO, a DCF is of limited use, but of some use nonetheless. Using the assumptions embedded in the multiples analysis above, along with a 13.8% discount rate, TIO's valuation works out to $1.42 per share, still providing a hefty 73% upside.
(click to enlarge)
Figure 9: DCF Model
Valuation Summary
Regardless of the method used (2.0x LTM sales, 2.0x NTM sales, or DCF) one comes to the conclusion that TIO is significantly undervalued.
Risks and Mitigating Factors
Competition: While it is standard boilerplate to name competition as a risk to the business, it is a fact that the bill payment market in the US is still highly fragmented, and that there exist competitors who have exponentially more resources than TIO. This risk is greatly mitigated by TIO's suite of billing partners and existing offerings to customers that create high switching costs. Further, because TIO is trading at an attractive valuation, a larger competitor is more likely to want simply to purchase TIO outright than spend the money required to out-compete them.
Customer Concentration: As stated above, AT&T and Cricket represent a large share of TIO's business, and that share is likely to increase as Cricket begins to grow. The acquisition of Globex did reduce TIO's customer concentration, and it can be expected that further acquisitions would have the same effect. Regardless, customer concentration remains a large risk forTIO, and AT&T's size gives it significant bargaining power over TIO.
Management: The CEO, Hamed Shahbazi, has been the driving force behindTIO's success. His leaving the company could be detrimental to the future for TIO. Given Mr. Shahbazi's ownership of 4% of the company as well as the bright future for TIO, it seems highly unlikely that he would consider leaving the company.
Currency Risk: Because TIO operates in the United States, but reports results and employs staff in Canada, it is susceptible to movements in the CAD/USD pair. In Q2 2014, this amounted to a $140,094 drag on earnings compared to a $16,579 lift a year earlier. The company is able to hedge this exposure to some extent.
Liquidity Risk: TIO shares have traded an average of 59,623 shares per day over the past 30 days, only allowing for around $55,000 of activity in the shares. There isn't much an investor can do to overcome this except to build a position over a long period of time and hold the position for the long term. Also of note are the varying bid/ask spreads that can range from 0.02/share to 0.05/share depending on the orders in the market.
Conclusions
TIO represents an opportunity for investors to get in on an attractive turnaround story. Revenues are set to increase swiftly going forward, coupled with a continued lift in margins. As this turnaround occurs, the market is likely to take notice, and TIO is likely to see multiple expansion in addition to the lift provided by improving financials.
Based on 2015E sales, TIO is easily worth $1.97/share, which represents 140% upside to the current price.
SA Article
This may have something to do with the volume yesterday.
http://seekingalpha.com/article/2448495-tio-networks-low-risk-100-percent-upside
TIO Networks Grants Incentive Stock Options
VANCOUVER, Aug. 12, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) ("TIO"), North America's leading expedited bill payment company, announces that it has granted incentive stock options to certain of its officers, employees and consultants to purchase up to an aggregate of 572,000 common shares of TIO, exercisable until August 12, 2024 at a price of $0.83 per share, in accordance with the Company's Stock Option Plan.
Of these stock options, 200,000 were granted to an executive officer of the Company.
The number of listed shares reserved for issuance under TIO's Stock Option Plan is 5,708,876 (10% of the issued and outstanding shares of TIO).
About TIO Networks Corp.
TIO is a Multi-channel, cloud-based bill payment processor serving the largest telecom, wireless, cable, utility and property management related bill issuers in North America. TIO processes Billions of dollars of payments each year serving millions of consumers across North America. For more information visit: www.TIOnetworks.com. Join the conversation on www.twitter.com/TIONetworks or like us on www.facebook.com/TIONetworks.
Great conference call.
GO TIO!
Price Target bumped UP: $2.10
http://www.globalmci.com/reports/tio-networks-08072014.pdf
TIO Networks Acquires ChargeSmart.com
VANCOUVER, British Columbia and SAN FRANCISCO, Aug. 5, 2014 /PRNewswire/ -- TIO Networks Corp. (TSX-V: TNC) ("TIO"), North America's leading expedited bill payment company, has entered into an agreement to acquire the assets of San Francisco, CAbased VeriFone Commerce Solutions Inc, (formerly ChargeSmart Inc. referred to herein as "ChargeSmart"). Chargesmart.com, and its Spanish equivalent Pagalisto.com, is a leading provider of bill payment services for US consumers who wish to pay bills online with a credit or debit card.
The acquisition will provide TIO the ability to leverage and extend ChargeSmart's search engine optimization and search engine marketing technology and its associated risk assessment engine to profitably and efficiently acquire new customers, while allowing end customers an alternative to pay their bills quickly and conveniently online. TIO will also be able offer current ChargeSmart.com customers access to many of its direct biller integrations as well as its advanced mobile wallet technology.
With this acquisition, TIO expects to achieve: 1- Higher consolidated revenues and gross margins, 2- A more diversified revenue base across customers, channels and industries and 3- An improved revenue per transaction profile as ChargeSmart tends to generate transaction revenues equal to approximately 3-4% of the amount processed. The transaction is anticipated to be accretive after one-time deal and integration expenses.
"We are very pleased to welcome ChargeSmart and its valued employees and partners to the TIO Family," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "ChargeSmart has done a fantastic job establishing itself as a trusted brand and bill pay destination for hundreds of thousands of customers. Their ability to acquire customers through cost-effective online marketing programs and to quickly process them through an intuitive ecommerce check-out experience is a highly desirable competency for TIO.
Mr. Shahbazi continued, "ChargeSmart's proprietary bill payment and credit card risk decisioning engine has a proven track record of protecting both customers and billers from online fraud. As financial services transactions move online, billers and providers need to manage 'card not present' fraud. Integrating ChargeSmart's technology into TIO's platform will allow us to grow credit card adoption by extending ChargeSmart's leadership in fraud detection to all of our partners."
Post transaction, TIO's focus will be to grow and strengthen the ChargeSmart business and biller product portfolio while leveraging its considerable risk management capabilities across TIO's other channels and lines of business. TIO's "direct to consumer" online and mobile businesses will be managed by the ChargeSmart team based in San Francisco. Jake Cunningham, the previous general manager of ChargeSmart, has been appointed as VP of Consumer Payments for TIO Networks.
"We are thrilled to be joining the TIO family and to be able to offer their suite of world class products and services to our customers." Said Jake Cunningham, "By combining their expertise related to mobile wallets and expedited bill payments with our industry leading anti-fraud and customer acquisition techniques, TIO is well positioned to become the preeminent brand for web-based, mobile, and in-person bill payments in North America and abroad."
The asset purchase transaction closed on August 1st, 2014. The parties also entered into a transition services agreement upon closing under which VeriFone will temporarily retain certain assets and provide operational services for a period of time to ensure a smooth transition into TIO's infrastructure.
A conference call to discuss the transaction noted above will be held Wednesday August 6, 2014 at 9:30am PST/ 12:30pm EST. To participate in the call please dial 416-644-3426 in Toronto or Toll Free, 1-800-731-5319 and request the TIO Conference Call.
Read more at http://www.stockhouse.com/companies/bullboard/v.tnc/tio-networks-corp#YBwfslk2Zv1Z2bUI.99
New 52 week high. $1.01
And theres some big bids waiting. I think we have a momentum stock. I think we have a value stock. I think we have a stock that is gonna run through the next few Q's. But most of all, I think we have a winner!
Current price target of $2 and its only going to get bumped up.
GLTA
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TIO is the leading multi-channel expedited bill payment processor serving the largest Telecom, Wireless, Cable and Utility bill issuers in North America.
With over 58,000 endpoints to its processing network, TIO symbolizes fast, convenient and secure access to expedited payment services.
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